Hiring foreign workers in Singapore can be a strategic move for businesses to address labour shortages or acquire specialised skills. However, it comes with a stringent set of regulations and obligations primarily enforced by the Ministry of Manpower (MOM). Employers must navigate these requirements carefully to ensure compliance and avoid penalties.

 

Understanding Work Passes

The cornerstone of hiring foreign workers in Singapore is obtaining the appropriate work pass. The type of pass depends on the foreign worker’s qualifications, salary, and the nature of their job. The main categories include:

  • Employment Pass (EP): Generally for foreign professionals, managers, and executives who earn a minimum qualifying salary and possess acceptable qualifications.
  • S Pass: For mid-skilled foreign employees who earn a minimum qualifying salary and meet other criteria related to qualifications and experience.
  • Work Permit: Primarily for semi-skilled foreign workers in specific sectors like construction, manufacturing, marine shipyard, process, or services.

For each work pass type, MOM has specific eligibility criteria for both the employer and the foreign worker, as well as varying application processes and documentation requirements. Employers must also be aware of quotas and foreign worker levies applicable to Work Permit and S Pass holders, which vary by sector and dependency ratio ceilings.

 

Key Employer Obligations

Employers who hire foreign workers in Singapore have several critical obligations to fulfil throughout the employment lifecycle:

1. Fair Consideration Framework (FCF)

Before hiring an Employment Pass or S Pass holder, employers are generally required to advertise the job vacancy on the MyCareersFuture portal for at least 14 days and fairly consider all Singaporean applicants. This framework aims to ensure that Singaporeans are given fair opportunities in the job market. There are some exemptions to this requirement, such as for very senior positions or jobs with short-term durations.

2. Work Pass Application and Issuance

Employers are responsible for applying for the correct work pass for their foreign employees. This involves:

  • Submitting accurate information: Providing truthful and complete information in all application forms and supporting documents. Misrepresentation can lead to severe penalties.
  • Ensuring eligibility: Verifying that the foreign worker meets all the eligibility criteria for the intended work pass.
  • Medical Examination: Arranging for the foreign worker to undergo a medical examination to ensure they are fit for work.
  • Security Bond (for Work Permit holders): For Work Permit holders from non-traditional sources, employers must furnish a security bond to MOM. This bond serves as a guarantee that the employer will repatriate the worker and comply with regulations.

Once the work pass is approved in principle, employers must ensure the foreign worker arrives in Singapore and completes the necessary formalities for pass issuance, including fingerprints and photo submission.

 

3. Foreign Worker Levy

For Work Permit and S Pass holders, employers are generally required to pay a monthly foreign worker levy to MOM. The levy rates vary depending on the sector, the worker’s skills (e.g., higher-skilled workers may have lower levies), and the company’s dependency ratio ceiling (the proportion of foreign workers allowed). Employers must ensure timely and accurate levy payments.

 

4. Accommodation and Upkeep

Employers are responsible for providing acceptable accommodation for their foreign workers, particularly for Work Permit holders. This accommodation must meet MOM’s housing standards and regulations to ensure the well-being and safety of the workers. Employers must also ensure the general upkeep and welfare of their foreign employees, including access to medical care and a safe working environment.

 

5. Employment Act Compliance

All foreign workers employed in Singapore, regardless of their work pass type, are covered by certain provisions of the Employment Act (EA). This means employers must comply with EA provisions regarding:

  • Wages: Timely payment of salaries and adherence to minimum salary requirements where applicable.
  • Working Hours: Compliance with limits on working hours and overtime rules.
  • Leave Entitlements: Providing statutory leave such as annual leave, sick leave, public holidays, and specific maternity/paternity/childcare leave where applicable.
  • Rest Days: Ensuring employees receive statutory rest days.
  • Termination of Employment: Adhering to notice periods and other requirements for fair termination.

 

6. Repatriation

Upon the cessation of employment for a foreign worker, employers are generally responsible for their repatriation. This includes purchasing an air ticket and ensuring the worker leaves Singapore within the stipulated timeframe. Failure to repatriate a foreign worker can lead to the forfeiture of the security bond (for Work Permit holders) and other penalties.

 

7. Maintaining Records

Employers must maintain comprehensive and accurate employment records for all foreign workers, including contracts, salaries, attendance, leave, and work pass details. These records are vital for demonstrating compliance during MOM audits or inspections.

 

Penalties for Non-Compliance

The MOM takes a serious view of non-compliance with its regulations. Penalties can range from:

  • Fines: Significant financial penalties for various infringements.
  • Imprisonment: For more severe offences, particularly those involving false declarations or illegal employment.
  • Debarment from hiring foreign workers: Employers may be banned from applying for or renewing work passes.
  • Revocation of work passes: Existing work passes may be cancelled.

Hiring foreign workers can be a complex process given the numerous regulations and ongoing obligations. Ensuring full compliance with MOM’s requirements is paramount for any business looking to tap into the global talent pool.

For professional support with navigating the complexities of hiring foreign workers and ensuring compliance with MOM regulations, consider reaching out to Raffles Corporate Services Pte Ltd.

For further assistance or inquiries, you can contact the Raffles Corporate Services team via email at [email protected].

Yours sincerely,

The editorial team at Raffles Corporate Services