Security Bond Requirements For Employment Agencies

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What is the purpose of the security bond

You need to get the security bond in the form of an electronic banker’s guarantee before the employment agency (EA) licence is issued, or when required to top up the security bond amount.

This is to ensure your compliance to all regulations of the Employment Agencies Act 1958. Should your EA breach any of the regulations, the security bond may be forfeited.

Security bond amount

You can use the security bond calculator to calculate the amount:

Calculate your security bond

The security bond your employment agency needs to furnish is as follows:

  • For EAs with a Select Licence (SL): between $20,000 and $60,000, depending on the following criteria:
For an EA meeting this criteria Minimum security bond required
  • All SL EAs within first year of operation (if the EA has not accumulated any demerit points).
 $20,000
  • Has more than 3 demerit points in the past 12 months.
 $40,000
  • Has 8 or more demerit points in the past 12 months.
 $60,000
  • For EAs with any of the Comprehensive Licences (CL): between $20,000 and $60,000, depending on the following criteria:
For an EA meeting this criteria Minimum security bond required
  • All CL EAs within first year of operation.
 $60,000
  • Has 3 or fewer demerit points in the past 12 months.
  • Placed fewer than 200 Work Permit and S Pass holders in past 12 months.
 $20,000
  • Has 3 or fewer demerit points in the past 12 months.
  • Placed 200 or more Work Permit and S Pass holders in past 12 months.
 $40,000
  • Has more than 3 demerit points in the past 12 months.
  • Placed fewer than 200 Work Permit and S Pass holders in past 12 months.
 $40,000
  • Has more than 3 demerit points in the past 12 months.
  • Placed 200 or more Work Permit and S Pass holders in past 12 months.
 $60,000
  • Has 8 or more demerit points in the past 12 months, regardless of the number of foreign placements.
 $60,000

All new EAs with a CL are required to furnish a $60,000 security bond. This requirement can only be reviewed after the first 12 months of operations. The amount will be revised depending on the EA’s placement volume and track record, as shown in the table.

To get your EA’s security bond amount reviewed, send in a request to [email protected].

Note: EAs that do not provide the required security bond will not be allowed to submit any new work pass applications.

When a security bond will be discharged

We will discharge your security bond liabilities 6 months after the termination or expiry of your licence. This is to hold your employment agency against any continued liabilities.

If you have changed entity type such as changing from a sole-proprietorship to a private limited company, and applied for a licence under the new entity, your previous security bond liabilities, tied to the previous entity, will similarly be discharged after 6 months.

What's next

Eligibility for employment agency personnel

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