Final answer:
If an Employment Agency exceeds the placement volume or demerit points and its security deposit is insufficient, it may face fines, license suspension, or cancellation, and could be required to increase the security deposit or face legal proceedings.
Step-by-step explanation:
When an Employment Agency (EA) crosses the placement volume or demerit point benchmark and the security deposit (SD) is not sufficient, several outcomes are possible, depending on the jurisdiction and specific regulatory framework.
Generally, the agency may be required to pay additional fines or face sanctions such as suspension or cancellation of their license. The regulating body may also demand that the EA increase the amount of the security deposit to continue operating legally.
If the EA cannot cover the required costs with the existing security deposit, it may be subject to legal proceedings or forced to cease operations until the deposit is replenished.
This enforcement mechanism ensures that agencies adhere to established rules and standards, thereby protecting the interests of both employers and employees. EAs must, therefore, closely monitor their compliance to avoid such scenarios.