The private employment agencies that provide work abroad witness stagnation owing to the competition from informal intermediaries and the ifficult procedures for obtaining licenses and legalizing work, says a study carried out within the NEXUS Moldova Project, IPN reports.

In a presentation event, study author Mihail Cebotari said the private employment agencies hold a market share of 20%, while the rest of the market is occupied by informal intermediaries. The agencies meet with difficult procedures for obtaining licenses, while the informal intermediaries face no restrictions. These act freely and dominantly and are liable only to small fines or penalties that will most probably not be imposed on them.

According to the study, most of the agencies in Moldova signed cooperation agreements with intermediaries, not with employers. The procedures defined by the national legislation for negotiating cooperation agreements and draft individual work contracts can prolong the negotiation process for months, entailing significant costs.

The author considers the current situation shows the regulatory approach is unbalanced and the current legal framework as well as the approach to the policy on the placement of the labor force abroad should be changed. The authorities should lay emphasis on appropriate punishment for intermediaries and should remove the useless administrative procedures applying to employment agencies.

Also, an expert body, like the National Employment Agency or the Labor Institute, should be empowered to monitor and inspect the private agencies and other intermediaries.