With a small population and potential jobs that locals cannot do or prefer not to do, many Singapore businesses hire foreigners to plug the manpower gap. Today, over 1.5 million foreigners are working in Singapore.
But Singapore’s labour laws are notably stringent, and the Ministry of Manpower (MOM) clamps down hard on errant employers who mistreat or commit offenses that are not legally allowed.
The Employment of Foreign Manpower Act (EFMA) is the act relating to the employment of foreign manpower. The Employment Act related to employees who are Singaporeans or PRs.
Read Also: Singapore’s Shortage Occupation List (SOL) – A List Of High-Demand Jobs That Few Locals Can Fill
What Is The Employment of Foreign Manpower Act In Singapore
The Employment of Foreign Manpower Act, or EFMA in short, regulates the employment of foreign employees and protects their well-being. The EFMA outlines responsibilities relating to work passes, including application, medical insurance, levy, cancellation and repatriation.
It prescribes the responsibilities and obligations for employing foreign employees in Singapore and covers regulations of work passes and enforcement for offences and infringements.
Read Also: Understanding Singapore’s Foreign Workforce Numbers
Who Is Covered Under The Employment of Foreign Manpower Act
In the act, a foreign employee is referred to as someone who is a foreigner (other than a self-employed foreigner), who seeks or is offered employment in Singapore. A foreigner refers to any person who is not a citizen or Permanent Resident of Singapore.
The act covers employers of foreign employees and any person issued a work pass by the Ministry of Manpower (MOM). Work passes include Employment Pass, S Pass and Work Permit.
It outlines responsibilities relating to work passes, such as medical insurance, levy, cancellation and repatriation.
Read Also: Employment Of Foreign Manpower Act: 7 Things You Need To Know When Hiring Foreigners
What Are The Offences Under The Employment of Foreign Manpower Act
The common offences under the Employment of Foreign Manpower Act include employing a foreign employee without a valid work pass and obtaining a work pass for a foreign employee for a business that does not exist.
For offences, they tend to be more serious as you can go to jail for committing them for serious penalties. The most serious offences can also receive caning.
#1 Employing A Foreign Employee Without A Valid Work Pass
All foreigners who intend to work in Singapore must have a valid pass (commonly known as a work visa) before they start work. If you engage foreigners to work in Singapore, you must ensure that they hold a valid pass.
Offenders will be fined between $5,000 and $30,000, or imprisoned for up to 12 months, or both.
If the offender continues to employ foreigners without a valid work pass, they may face mandatory imprisonment of between one month and 12 months and a fine of between $10,000 and $30,000.
Read Also: Guide To Work Passes In Singapore: Work Permits, S Pass and Employment Pass (EP)
#2 Contravening Any Condition Of A Work Pass
You should strictly deploy your workers only in the jobs stated in their work permits, otherwise it might be interpreted as wrongful deployment. The deployment for an activity other than what the work permit states is not allowed.
This is to prevent incidences and accidents that could happen if the worker meets with an unfortunate accident when running non work-related tasks.
The person who committed the offence will get a fine up to $10,000, or imprisonment for up to 12 months, or both.
#3 Making A False Statement Or Providing False Information In Any Application Or Renewal Of A Work Pass
If you make a false statement or provide misleading information which you know or ought to know is deceptive to authorities, such as officials from MOM, you will be penalised.
Offenders will receive a fine up to $20,000, or imprisonment for up to two years, or both.
#4 Receiving Money In Connection With The Employment Of A Foreign Employee
If you receive money in connection with the employment of a foreigner, you are also flouting the law. This can be in the form of demanding money from foreigners before considering them for employment, which is illegal.
A fine up to $30,000, or imprisonment for up to two years, or both, will be imposed.
#5 Obtaining A Work Pass For A Foreign Employee For A Business That Does Not Exist, Or Is Not In Operation Or Does Not Require The Employment Of The Foreign Employee
This scenario is quite straightforward as you are illegally hiring foreign workers for a business that is non-existent or do not require foreign workers. This means that you will eventually commit some offences above as you are making false statements, and contravening conditions of the job scope that the worker is hired for.
Offenders will receive an imprisonment term of between six months and two years and possibly a fine not exceeding $6,000. Offenders may also receive caning.
Read Also: Complete Guide To Foreign Worker Quota In Singapore: Eligibility And How To Calculate
What Are The Infringements Under Employment of Foreign Manpower Act
Infringements can lead to financial penalties of up to $20,000. Those found to have committed an infringement will be issued a Notice of Infringement and given an opportunity to respond to the Commissioner for Foreign Manpower’s findings.
The Commissioner for Foreign Manpower’s final decision will be set out in a Determination or Direction.
If you disagree with the Determination or Direction, you may make a review application to the Commissioner for Foreign Manpower, or file an appeal to the Appeal Board.
#6 Illegally Deploying A Foreign Employee Or Domestic Worker
Illegal deployment is a serious infringement. Employers who flout the rules will be issued advisory notices and/or caution notices, or be slapped with a fine.
Employers are reminded of their legal obligations under the Employment of Foreign Manpower Act (EFMA). The caution sends a strong message to the employers to comply or face stronger enforcement action. The ministry takes a stern view of cases where foreign domestic workers are deployed to participate in non-domestic work or to work in commercial premises, regularly and over a long period of time.
This ruling is enforced because workers who take on illegal deployments may be overworked and not get adequate rest.
A financial penalty of up to $10,000 will be imposed. Errant employers may also be banned from employing helpers.
#7 Contravening Any Regulatory Condition Of A Work Pass
Violating any regulatory conditions of a work pass. A regulatory condition is a condition that is set by the authorities, including work pass eligibility.
Offenders face a financial penalty of up to $10,000.
#8 Deducting Employment Costs (Such As Levy) From Foreign Employee’s Salary
The foreign worker levy is a pricing mechanism to regulate the number of foreign workers in Singapore. As employers benefit directly from hiring these workers, they must pay the monthly levy for each work pass holder they employ, and must not pass the levy cost on to their workers.
Employers must not recover the levy or other employment-related costs from their workers. MOM will take action against employers who attempt to recover the levy from their FWs.
If convicted, employers are set to face a financial penalty of up to $20,000.
#9 Making Work Pass Applications Based On CPF Contributions To “Phantom” Workers
Suspects in a syndicate conducting illegal employment and making false declarations in work pass applications were arrested in May, 2023. The syndicate made CPF contributions to Singaporeans to fraudulently inflate the shell companies’ quota to hire foreigners.
These Singaporeans, or “phantom workers”, are not employed by these companies. Based on the inflated quota, the companies would apply for work passes for the foreigners through false declarations. These foreigners would then enter and remain in Singapore via these illegally obtained work passes.
This is an example of how companies flouted the law by making work pass applications based on contributions from “phantom” workers.
The infringement will lead to a financial penalty of up to $20,000.
The MOM notes that making false declarations in relation to applications for work passes is a serious offence. If convicted, an offender can be fined up to $20,000, or jailed for up to 2 years, or both. Errant employers will also have their work pass privileges suspended, and the work pass applicant may also be prosecuted and be permanently barred from working in Singapore.
Flagging Suspicious Employment Activities To Authorities
Employees can contact MOM at 6438 5122 for help of their employers are flouting any of these regulations.
Members of the public who are aware of suspicious employment activities such as companies employing foreigners without valid work passes, persons receiving CPF contributions from unknown companies, or know of persons or employers who contravene the EFMA should also report the matter to MOM at the same helpline or to [email protected]. All information that is shared will be kept strictly confidential.
Read Also: 2 Common Types Of Foreign Employment Offences Reported By MOM
Subscribe To The DollarsAndSense Business Pass
Enjoy what you are reading and want more? Join The DollarsAndSense Business Pass and unlock access to valuable tools, exclusive networking opportunities, and tap into the wisdom of industry experts to fuel your business expansion!
