50 Recruitment Agencies Shut Down as Labour Ministry Cracks Down

The Ministry of Labour in Mauritius has mandated an immediate cessation of operations for all recruitment agencies lacking a valid licence, triggering widespread concern across the sector. Approximately 50 recruitment agencies are now unable to fill 3,000 job vacancies, leaving countless Mauritians in limbo.

Under the Private Recruitment Agencies Act 2023, the Ministry has issued a formal notice to all recruitment agencies, emphasising that they must not engage in any placement activities without a valid licence.

As the Ministry seeks to finalise new regulations governing recruitment licencing, it has made it clear that no applications for new licences will be accepted in the interim.

The Ministry’s directive sternly warns that non-compliance could lead to hefty fines between MUR 500,000 and MUR 1 million, as well as potential imprisonment for up to five years.

According to the director of a prominent recruitment agency, the issues surrounding unrenewed licences stem from the Ministry’s own delays.

“Our licences should be renewed every two years, contingent on quarterly reports detailing our recruitment activities,” he explained.

“We have been pursuing the Ministry for two years, both under the previous and current government, only to be told that the law would be amended and that renewal would occur under new provisions.”

Currently, five agencies are directly affected by this suspension, resulting in the loss of around 50 jobs.

However, sources indicate that more agencies are expected to receive similar cessation notices shortly. There are a total of 57 recruitment agencies operating in Mauritius.

Another agency director expressed support for the Ministry’s initiative to better structure foreign worker employment but cautioned against indiscriminately penalising local recruitment efforts.

“While it’s a positive move, it’s crucial that Mauritians aren’t sidelined in the process,” he warned.

Local recruitment

This sentiment was echoed by a director from a different agency who lamented the halt to even local recruitment activities.

“We are being blocked under the pretext of an impending law change, risking penalties simply for trying to operate legitimately,” she stated.

Moreover, speculations have arisen regarding potential pressure from the Financial Crimes Commission, which is reportedly investigating specific cases within the industry.

“We feel paralysed at the moment,” she added, with mentions of possible legal action on the horizon should the Ministry fail to provide a satisfactory resolution.

As the situation develops, the future of Mauritius’s recruitment agencies hangs in the balance, raising serious questions about the implications for local employment and regulatory oversight.

Source: Defi Media