Have you ever checked if your preferred supplier of recruitment services is licensed by the Ministry of Labour? Or is operating a business which is illegal and not complying with the law? Here is why you should know.
The law in Thailand that regulates recruitment companies is called “The Recruitment and Job Seeker Protection Act”. It regulates all types of recruitment companies, from brokers sending Thais overseas to database agencies to executive search firms.
Be aware of un-lincensed recruitment companies
The very first and original Employment Act was enacted over 40 years ago, back in B.E. 2511 (1968), and was used for enforcement of overseas employment service businesses. Due to an increase in incidents where Thais were left in trouble overseas, often without passports and money that were held by unscrupulous brokers, the old law was amended to become the Employment and Job Seeker Protection Act B.E. 2528 (1985). Amendments have been made several times since then, latest in B.E. 2544 (2001).
The purpose of the Act is to provide job seekers good protection when recruitment service providers are involved in the search and hiring process. The Department of Employment under the Ministry of Labour is in charge and controls the execution of this Act.
My own personal recruitment license is KT130/2552.
Companies who wish to offer employment and recruitment services in Thailand must register with the Ministry of Labor and will in turn receive a license to operate once the office has been approved that it complies with the ministry regulations. Names of all staff working in a recruitment company must register with the Ministry of Labor by submitting an application, photo and a clean criminal record from the police. In addition any staff with client contact must also hold a special Identity Card.
The juristic person of a local recruitment and employment service provider must be a Thai national, and the company must deposit 100,000 Baht as a financial guarantee with the Registrar Officer. Â An overseas employment service provider must be a company limited or a public company having fully paid registered capital of not less than Baht 1 million and a financial guarantee of Baht 5 million deposited with the Central Employment Registrar Officer.
Recruitment companies are required to submit a monthly report of activities to the Ministry of Labor as well as keep on site several other reports that can be inspected by the Ministry of Labor.
Next time you call a recruitment company make sure you ask if they are in compliance with the law. Grant Thorntonâ€™s Executive Recruitment holds a proper license from the Ministry of Labour.