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Recruiter's License

Introduction

The Federal Ministry of Labour and Employment commenced the issuance of the Recruiter’s Licence to qualified Labour Contractors and other operators of such ancillary services in 2007. This is in accordance with the provisions of Sections 23, 24, 25,71 and 88 (e ,f and g) of the Labour Act CAP L1 2004 LFN and in exercise of the powers vested on the Honourable Minister of Labour and Employment by these provisions. In addition to issuing the licence, relevant conditions and guidelines have also been approved to regulate the activities in the industry. The purpose of recruiters’ licence is to regulate the Labour service provision and mitigate cases of unfair labour practices and other unwholesome practices prevalent in the industry. It is also to promote Government’s agenda of Decent Work for all Nigerians. The Federal Ministry of Labour and Employment commenced the issuance of the Recruiter’s Licence to qualified Labour Contractors and other operators of such ancillary services in 2007. This is in accordance with the provisions of Sections 23, 24, 25,71 and 88 (e ,f and g) of the Labour Act CAP L1 2004 LFN and in exercise of the powers vested on the Honourable Minister of Labour and Employment by these provisions. In addition to issuing the licence, relevant conditions and guidelines have also been approved to regulate the activities in the industry. The purpose of recruiters’ licence is to regulate the Labour service provision and mitigate cases of unfair labour practices and other unwholesome practices prevalent in the industry. It is also to promote Government’s agenda of Decent Work for all Nigerians.


Finally, Recruiter license is provided by the ministry for essence of protecting jobseekers from being swindled and to establish an employer and employee relationship between the parties so as to hold the employer responsible for his obligation towards the employee when the need arises. As one of the required documents is contract the contract of employment. Obvious, penalties are laid out where this registration is not complied with.

Recruiter's License

Requirements for the issuance of Recruiter’s License

The requirement and process for registering depends on the sphere within which the recruiter wants to carry on business. There are two types of forms recruiters must fill to register for the issuance of a recruiter's license they are either:

  1. Domestic application form - This is used when all the clients are domestic companies.
  2. International application form - This must be used when the recruiter has international companies as clients.

In order to be issued a Recruiters' License, certain documents are required, the following is the list of documents requirements.

  1. Application letter from the Company.
  2. Properly filled Application form (to be downloaded from NELEX portal; www.nelex.gov.ng)
  3. Evidence of payment of application fee of the sum of N5,000 (This payment is through remitta)
  4. Memorandum and Articles of Association. (must have recruitment of labour as an object clause)
  5. A copy of the management profile to ascertain the competence of the management.
  6. Bank Guarantee/Insurance bond for number of workers recruited
  7. For Domestic Application: Oil and Gas below 100 staff is N3,000,000 and above 100 is N5million,other sectors below 100 staff is N1.5 million while 100 and above staff is N3million. For that of International Placement is N5million for every sector
  8. For International application: For the other Industry Sector were the number of Employees is between 1-100 would pay N3 Million and for Oil and Gas would pay N5 Million respectively also for the insurance bond
  9. Photocopy of the Certificate of Incorporation.
  10. Evidence of Registration with Pension Fund Administrator in line with Pension Reform Act of 2014 as amended
  11. Copy of contract letter of appointment for both permanent and recruited staff
  12. Copy of contract with client company(ies)
  13. Copy of company's Handbook/Conditions of Service
  14. Evidence of health insurance/medical allowance/medical retainership
  15. Names, addresses and telephone numbers of Directors
  16. Evidence of registration with NSITF (Employees Compensation)
  17. Training Policy for employee/recruited personnel
  18. Evidence of health insurance/medical allowance/medical retainership.
  19. Copy(ies) of Regulatory/Professional Certificate if recruitment is for Oil and Gas, Construction, Manufacturing or Security Sector.
  20. Sectors
  21. Evidence of Remita payment of Licence fee of N200,000 upon approval for Domestic placement and N300,000 for International Placement
Please note that non-compliance with the requirement would lead to return of documents until all requirements are met.

Objectives of Recruiter’s License

  1. To regulate the activities of Labour Contractors and mitigate cases of unfair labour practices and other unwholesome practices that are common in the outsourcing industry.
  2. To regulates the multiple levels at which recruitment of workers into employment is taking place.
  3. To enable government keep a close watch on the activities of PEAs/labour contractors.
  4. To ensure that licensed PEAs and Labour Contractors operate within the confines of their operational licenses.

  5. There are two categories of Recruiters’ Licence viz:
    i. Licence for domestic placements, that is, recruitment for employment within Nigeria. Fill application form here
    ii. Licence for international placements, that is, recruitment for employment outside Nigeria. Fill application form here


Sectors of Operation

Industrial or Economic sectors such as Agriculture, Hunting and Forestry, Mining and Quarrying, Financial and Insurance Institutions ,Oil and Gas Industry, Manufacturing, Energy, Electricity, Transportation, Health, Hotel and Restaurant, Education, Private Security/Guards ,Information Communication Technology (ICT), Hospitality, Construction, Real Estate, Wholesale and Retail trade, Social welfare services and others.




Domestic
Type Application Fees Fees Validity period
Fresh Application N5,000 N200,000 2 years
Renewal N5,000 N100,000 1 year
Renewal N5,000 N200,000 3 years



International
Type Application Fees Fees Validity period
Fresh Application N5,000 N300,000 2 years
Renewal N5,000 N300,000 2 year
    FAQs

  1. What is a recruiter’s license?
    It is a license issued by the Federal Ministry of Labour and Employment to Private Employement Agencies (PEA) after being satisfied that the PEA has complied with the relevant provisions of the law that guarantee decent work for recruited staff.

  2. Who should obtain a recruiter’s license?
    A company who employs workers with a view to making them available to a third party.

  3. Why should a PEA obtain a recruiter’s license?
    To be legally authorized to operate as a Recruiter by the Federal Government of Nigeria.

  4. What categories of recruiter’s license exist?
    There are two categories of recruiter’s license viz:
    i. License for domestic placements, that is, recruitment for employment within Nigeria
    ii. License for international placements, that is, recruitment for employment outside Nigeria.

  5. How can application be obtained?
    Application form can be filled and submitted after uploading required documents at the National Electronic Labour Exchange (NELEX) web portal at www.nelex.gov.ng.

  6. What is the cost of application form?
    The cost of application form is Five Thousand Naira (N5000) non refundable fee paid into the Single Treasury Account (TSA) of the Federal Government.

  7. What is the total cost of obtaining a recruiter’s license?
    The total cost of license for domestic placement is Two Hundred and Five Thousand Naira (N205,000) comprising a non-refundable application fee of N5,000 and license fee of N200,000. The total cost of license for international placement is Three Hundred and Five Thousand Naira (305,000) comprising a non-refundable application fee of N5,000 and license fee of N300,000.

  8. How can payment be made from the application form for the license?
    You can make payment via the NELEX portal using your ATM card or By generating Remita Retrieval Reference (RRR) number on the Remita platform www.remita.net and using the RRR generated to make payment at any commercial bank. This RRR can then be entered on the NELEX portal to confirm the payment.

  9. What should be done if a license is about to expire or has expired?
    Prior to the expiration of an existing license , a PEA is expected to commence the process of renewal by completing application form and submitting same with all the required documents.

  10. What are the basic requirements for obtaining a recruiter’s license?
    The list of requirements can be viewed here

  11. How long does it take to obtain a recruiter’s license?
    Two weeks from the date of submission of application, provided that all required documents were attached at the point of submission and that none of the provisions of the PEAs Employee Handbook is in violation of any of the provisions of extant labour laws.

  12. When does a recruiter’s license expire?
    Two years for fresh application and one year for a renewed license. However, where the Minister is satisfied that a PEA is of exemplary conduct and has discharged all it’s obligations to the ministry, such a PEA may upon submission of renewal, be issued a license with three years validity.

  13. What if a company’s memorandum of association does not cover recruitment of labour?
    Such a company is not qualified for the license. However, the company can approach the Corporate Affairs Commission to amend it’s Memorandum of Association to include recruitment of labour after which it could be considered for licensing if other conditions are met.


  14. What are the obligations of a licensed PEA toward FML&E?
    To submit itself to routine labour inspection, submit quarterly report of it’s operation, attend annual workshop for PEAs and publish vacancy advertisement on NELEX website.

  15. Why do PEAs deposit security bond with FML&E?
    To cater for the payment of wages of recruited workers in case of default as well as payment of any fine which may be imposed upon the employer and any other expenses which may be incurred by the Federal Government in respect of the workers or their families.

  16. Where can a security bond be obtained?
    Security bond can be obtained from a licensed insurance company.

  17. What is the purpose of pre-registration inspection done by the state labour office?
    To confirm the genuineness of all information/ document submitted in support of the application.

  18. Why is registration with the Nigeria Social Insurance Trust Frund one of the requirements for issuance of license?
    To ensure that recruited workers are compensated for occupational accidents or disease arising out of, and the course of employment.

  19. Why does the FML&E requests for employee’s handbook?
    To ensure that workers employed by private employment agencies have terms and conditions of employment that engender decent work.

  20. Are workers recruited by PEAs prohibited from joining trade unions?
    No. The FML&E ensures that workers recruited by PEA are not denied the right to freedom of association and the right to bargain collectively.

  21. Why must PEAs participate in annual national workshop?
    It is mandatory for PEAs to attend so as to build their capacity on the tenets of decent work and modern trends in labour administration as it relates to outsourcing.

  22. Is there any grievance redress mechanism?
    Yes. All complaints from aggrieved PEAs or their workers should be channelled to the Honourable Minister of Labour and Employment for the attention of the Director, Employment and wages department for quick resolution

  23. Are there penalties for violation?
    Yes. Penalties for violation ranges from reprimand, suspension of license, withdrawal of license to prosecution depending on the gravity of the offence

  24. Are private security companies required to obtain a recruiter’s license?
    Yes. While registration with the Civil Defense Corps is to ascertain their technical competence in rendering security services, regulation of the terms and conditions of employment of recruited workers, including private security personnel is the exclusive responsibility of the federal ministry of labour and productivity. This is done through recruiters license

  25. Where does the process of obtaining recruiter’s start?
    From the Ministry of Labour and Employment Offices in the states where the PEAs Head Office is located