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IMPACT – HIGH
The government has announced that most immigration services and processes are to be accessed online from April 7 through May 4 in an ongoing effort to mitigate the spread of the COVID-19 virus.
Key Points:
Additional information: ICA’s e-appointment service is suspended, though call center services (6391 6100) will still be available. Those with ICA appointments on or after April 7 must postpone visiting the ICA building until after May 4. Please visit the Ministry of Manpower’s website for more information on work permit-related services.
Analysis & Comments: The response to COVID-19 continues to develop, and Deloitte will provide additional updates as information becomes available.
Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.
The government announced an entry ban for all short-term visitors. Further, only work pass holders employed in essential services can enter or return.
Additional information: MOM is encouraging employers to impose Leave of Absence (LOA) on all employees who returned to Singapore between March 14 and March 20, and did not receive an SHN. Affected employers and the self-employed may claim S$100 per day for LOAs. MOM is taking breaches of entry approval, as well as SHN and LOA requirements, seriously, and have recently revoked 89 work passes and permanently banned workers involved in the breaches from working in Singapore.
Analysis & Comments: Employers are advised to adhere to entry approval, SHN and LOA requirements and should continue to anticipate disruptions and delays regarding employee mobility and availability. The response to COVID-19 continues to develop, and Deloitte will provide additional updates as information becomes available.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
IMPACT – MEDIUM What is the change? A Singapore-based company was recently convicted of making a false fair hiring declaration in a work pass application.
What does the change mean? The Ministry of Manpower levied an SGD$18,000 fine for the conviction and revoked a newly hired foreign employee’s work pass. The convicted company was also barred by MOM from hiring foreign employees for 24 months.
Background: The company stated it had fairly considered local job candidates for a new position. An investigation showed the company posted a job ad and had 22 respondents who were not interviewed. The company hired a foreign candidate instead and submitted a work pass application containing this fair hiring declaration. Fair Consideration Framework (FCF) administrative penalties were strengthened by MOM in January of 2020 in order to provide a greater deterrent against workplace discrimination. The convicted company is the first to be prosecuted for making a false fair hiring declaration with the stronger penalties in place.
Analysis & Comments: Employers are reminded that when submitting work pass applications to the Controller of Work Passes all declarations within them are required to be true, accurate and complete. Failing to do so can result in fines of up to SGD$20,000, and/or a two-year jail sentence, for each charge.
Singapore has announced that officials will issue stay-home notices to all travelers who have been in an ASEAN country, Japan, Switzerland or the United Kingdom in the past 14 days. The measure is being taken in an effort to mitigate the spread of the COVID-19 virus.
Singapore’s COVID-19-related entry restrictions are now as follows:
Analysis & Comments: Singapore continues to take steps to mitigate the spread of the COVID-19 virus. Employers are advised to account for affected travelers and rearrange travel schedules accordingly. Those planning nonessential travel out of Singapore are urged to reconsider doing so at this time.
On March 16, The Ministry of Manpower issued guidelines for employers regarding employee travel.
MOM said:
Analysis & Comments: Employers must be prepared for significant disruptions to employee mobility and should anticipate further restrictions and quarantine measures. Employers are advised to check MOM’s website for more information on non-essential travel. The response to the COVID-19 outbreak continues to develop, and Deloitte will provide additional updates as information becomes available.
IMPACT – MEDIUM
What is the change? The Ministry of Manpower (MOM) will no longer accept applications via the Singapore Post (SingPost) for Personalised Employment Passes, Entrepreneur Passes and others.
What does the change mean? Beginning April 3, employment and dependent pass applications must be submitted electronically.
Analysis & Comments: The new policy means it will no longer be necessary to stand in line at the post office to submit pass applications, as the entire process will be completed electronically. Deloitte will alert clients to any additional changes as information becomes available.
IMPACT – HIGH What is the change? Singapore’s Ministry of Manpower (MOM) has expanded its travel restrictions for work pass and In-Principle Approval Letters holders.
What does the change mean? All work pass holders, including their dependents, who have traveled to South Korea, northern Italy, Iran or (as previously announced) mainland China within the last 14 days and intend to enter or return to Singapore, are now required to obtain MOM’s approval before beginning to travel. This requirement applies to work pass holders of all nationalities. The entry approval requirement applies to both work pass holders outside of Singapore, and in-principle approval holders who have not yet entered. All work pass holders affected by the new restrictions will be placed on a mandatory 14-day Stay-Home Notice (SHN) when they arrive in Singapore.
Additional information: The new restrictions apply to employers as well. Employers applying for entry approval must communicate to MOM that arrangements have been made for suitable premises to house the entering or returning employees for the duration of their SHN. When employers apply for entry approval, they must use this online facility.
Employers should inform employees and their dependents not to make travel plans for Singapore until MOM approval has been received.
MOM approval letters need to be sent to employees by their employers so they can show them to airline staff when they arrive in Singapore. When work pass holders are on the 14-day SHN, employers must make sure they can secure meals and other daily necessities. Employers will make such arrangements for work pass holders on SHN if they are unable to do this for themselves.
Employers and employees who are not in compliance with the new restrictions may face enforcement from MOM, including work pass revocation or work pass privilege withdrawal.
Analysis & Comments: The new MOM work pass and approval holder travel restrictions are Singapore’s latest effort to mitigate the spread of COVID-19. Workers with the affected passes and approvals planning travel to Singapore from the target areas may wish to reconsider their plans. The response to the COVID-19 outbreak continues to develop, and Deloitte will provide additional updates as information becomes available.
What is the change? Singapore will soon increase the monthly minimum salary for Employment Pass holders from SG$3,600 to SG$3,900, while older and more experienced candidates are expected to be paid at a higher rate commensurate with their skills and experience. The Ministry is also focusing on the tightening of the Fair Consideration Framework, and will broaden advertising requirements for Employment Passes to include jobs paying up to SG$20,000 per month.
Additional information: The increase to the Employment Pass salary minimum will be the first such increase since 2017, when the minimum was increased from SG$3,300 per month to the current SG$3,600. Officials also announced that beginning May 1, 2020, they will require all jobs paying up to SG$20,000 per month to be advertised on the jobs portal MyCareersFuture.sg for at least 14 days before an Employment Pass application can be submitted. Currently, only jobs paying up to SG$15,000 per month must be advertised.
Separately, the “local qualifying salary” or the minimum salary a local worker must earn to count towards a company’s quota for hiring foreigners on Work Permits and S Passes will be raised from SG$1,300 to SG$1,400 beginning July 1, 2020.
Analysis & Comments: Employers should update their policies and budget for the higher salaries as necessary. Employers should also note that new advertising requirements will take effect from May 1, 2020, and that all jobs paying up to SG$20,000 per month must be advertised locally before they can be opened up to foreign employees.
Singapore’s Ministry of Manpower (MOM) continues to implement measures to contain the spread of the Covid-19 virus.
Key points:
Background: Jurisdictions across the globe have implemented entry bans and other immigration restrictions in order to guard against the spread of the Covid-19 virus. In this regard, Singapore has issued a work pass application ban, tightened requirements for work pass holders with recent travel history in China, as well as other work pass-related measures.
Analysis & Comments: The response to the Covid-19 virus in Singapore and other countries continues to evolve. Deloitte will alert clients to additional changes or restrictions as information becomes available.
What is the change? Singapore will reduce the ratio of foreign workers in the construction, marine shipyard and process sectors in a two-step process beginning in 2021, according to the new budget.
What does the change mean? Beginning Jan. 1, 2021, companies in the construction, marine shipyard and process industries will only be permitted to employ S Pass holders as 18% of their total workforce, and the cap will drop again to 15% on Jan. 1, 2023. The current permissible percentage is 20% for these industries. For companies in the manufacturing industry, the ratio for S Passes will be reviewed at a later date because of economic uncertainty.
Background: The allowable percentage of foreign workers to Singaporean workers is referred to as the Dependency Ratio Ceiling (DRC), and S Passes are a sub category of the overall DRC. The government has observed an increase in the number of S Pass holders in the construction, manufacturing, marine shipyard and process sectors, and these numbers are expected to increase further over the next several years. Nevertheless, S Pass holder growth must be sustainable. The government is already working closely with enterprises to grow local manpower, including mid-career workers. The manufacturing industry will be reviewed in the future and may undergo similar sub-DRC reductions.
The following chart shows the changes to the DRC and sub-DRC in all sectors in the coming years.
Analysis & Comments: Following last year’s announcement during the budget on cutting dependency on the DRC and S Pass sub-DRC thresholds in the services sector, this announcement on tightening the foreign workforce quota in three additional sectors comes as no surprise. The reduction in the sub-DRC is aimed at encouraging employers in the construction, marine shipyard and process sectors to enhance their Singaporean workforce by hiring and training more Singaporean workers and transferring skills from their foreign employees to the local workforce.