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IMPACT – MEDIUM
Authorities have taken steps to give employers more flexibility when requesting approval to bring employees from mainland China.
Key Points:
Analysis & Comments: The response to coronavirus in Singapore and other countries continues to evolve. Deloitte will alert clients to additional changes or restrictions 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 – HIGH
What is the news? The Ministry of Manpower (MOM) has revoked the work passes of four work pass holders and suspended work pass privileges of six employers.
What does the news mean? MOM sanctioned the employers and employees, including two permanent residents, after discovering they were in breach of the leave of absence (LOA) requirements recently implemented as part of the ongoing effort to contain the spread of the coronavirus.
Background: As part of ongoing efforts to contain the coronavirus, MOM recently implemented a mandatory 14-day leave of absence for all workers returning to Singapore from China.
Analysis & Comments: Employers are reminded that sanctions are harsh for all breaches of the LOA policy, and that MOM is conducting random inspections to enforce it. MOM has revoked the work passes of four foreign national employees discovered working at their places of work, though on LOA, and deported and permanently banned them from working in Singapore. Further, MOM has revoked work pass privileges for the six employers involved in the LOA breach for two years. Deloitte will alert clients to additional changes or restrictions as information becomes available.
What is the change? All work pass holders with recent travel history in mainland China must obtain permission from the Ministry of Manpower (MOM) before traveling/returning to Singapore.
What does the change mean? All existing work pass holders, as well as In Principle Approval (IPA) holders, who have spent any time in mainland China within the last 14 days must now obtain permission from MOM before traveling to Singapore. Employers seeking entry approval for affected foreign employees must declare to MOM that they will provide suitable housing for the returning employees for the duration of their mandatory leave of absence (LOA). Employers must provide an approval letter from MOM to returning employees to show to the airlines before they embark and on arrival.
Analysis & Comments: The new requirements are among the latest measures MOM has taken in response to the coronavirus. MOM has additionally instructed employers to defer return travel for employees who have recent travel history in Hubei Province or who hold a passport issued in the province. Employers are reminded that penalties for breaching coronavirus-related policies are strict and include revocation of work passes, deportation, and loss of employer work pass privileges. Deloitte will alert clients to additional changes or restrictions related to the coronavirus outbreak as information becomes available.
What is the change? The Ministry of Manpower (MOM) is rejecting work pass applications for all foreign workers from mainland China until further notice as a precautionary measure to limit any potential risk on the spread of the coronavirus.
What does the change mean? MOM is rejecting all new work pass applications for foreign workers from mainland China and is instructing existing work pass holders who have traveled to mainland China during the last 14 days to take a 14-day leave of absence on arrival in Singapore.
Background: Since the coronavirus was first detected in December, countries in the region have issued travel bans and warnings to prevent the further spread of the virus. Last week, Singapore began rejecting new work pass applications from Hubei Province, where the coronavirus is believed to have originated.
Analysis & Comments: The extension of the new work pass application ban to all of mainland China indicates that the government could implement further immigration restrictions in response to the coronavirus epidemic. Employees traveling from China with valid work passes will still be allowed to enter Singapore; however, they must remain at home for 14 days on returning. In this regard, MOM has stated it will hold both employees and their employers responsible for ensuring the proper execution of quarantine measures. Deloitte will continue to monitor the situation and will provide updates as they become available.
What is the change? The Ministry of Manpower (MOM) is implementing measures for all foreign workers from Hubei Province in China to prevent the spread of the coronavirus.
What does the change mean? MOM will reject all new work pass applications for foreign workers from Hubei Province and is instructing existing work pass holders from Hubei Province who are currently away or have traveled to the province during the last 14 days to defer returning to Singapore.
Background: Since the coronavirus was first detected in December, countries have begun issuing travel bans and warnings to prevent the further spread of the virus.
Analysis & Comments: Employers should note MOM regulations regarding foreign workers from Hubei Province who are not currently in Singapore and reconsider filing immigration applications for workers from this province. Employees with valid work passes will still be allowed to enter Singapore; however, they will be quarantined at home or in other suitable facilities on returning. Deloitte will continue to monitor the situation and will provide updates as they become available.
Scam phone calls appear to be on the rise in Singapore again.
Information on how to detect and report scam websites, phone calls or emails is available on this Ministry of Manpower website.
Analysis & Comments: Foreign nationals are encouraged to remain vigilant against possible scams, not to turn over personal information if targeted, and to report suspicious calls and emails to authorities.
What is the change? Singapore has increased penalties for discriminating against potential local job applicants and for making false declarations when recruiting and hiring foreign nationals.
What does the change mean? Employers should ensure they are compliant with the Fair Consideration Framework (FCF) regulations when recruiting and hiring foreign nationals.
Background: Singapore introduced the FCF in 2014 to combat discrimination against locals in the recruiting and hiring practices of companies based in the country. The government has recently increased penalties for employers and is actively following up on complaints of discrimination against local workers in the recruitment and hiring process. The FCF also addresses discrimination based on other factors such as age and gender.
Analysis & Comments: The Ministry of Manpower updated the FCF earlier this month, and the changes include stiffer penalties for violations. Employers and key personnel face up to two years of imprisonment, a fine of S$20,000 or both for making false declarations. Moreover, the minimum debarment period has increased from six months to 12, and debarment from applying for new work-related permits now extends to renewal applications as well. Companies may be debarred for up to 24 months in egregious cases. Since 2014, Singapore’s Tripartite Alliance for Fair and Progressive Employment Practices has taken action against employers in 680 cases, and this month one high-profile company has been charged with making declarations on an employment pass application.
What is the change? Singapore has launched Tech@SG, a program designed to help tech startups recruit and retain high-skilled foreign talent.
What does the change mean? Under the program, qualifying companies will be able to secure up to 10 Employment Passes to hire foreign nationals as core members of their companies. The Ministry of Manpower will ensure the first renewal of each of the Employment Passes, with each renewal valid for up to three years.
Additional information: Singapore’s Economic Development Board (EDB) and Enterprise Singapore announced plans for Tech@SG this past summer, and officials have now implemented it. The program will be open to companies that:
Companies with at least 30% local shareholding should not apply under Tech@SG but should instead submit applications under Startup SG, which is a separate Enterprise Singapore program.
Analysis & Comments: The implementation of Tech@SG is a major policy development for Singapore. While the program is not geared toward more established companies, it could help a number of tech startups meet workforce needs and remain globally competitive.
What is the reminder? Employers are reminded that on Jan. 1 qualifying salary requirements for new S Pass applicants will increase from $SG2,300 to $SG2,400 (from about US$1,689 to US$1,763).
Additional information: The Jan. 1 increase is the second part of a two-step wage hike after the Ministry of Manpower increased the qualifying salary to SG$2,300 on Jan. 1, 2019. Fixed monthly allowances (if it is paid directly to the employee and reflected on their payslip) can be included when calculating an employee’s salary. Employees must be paid according to their experience, and experienced employees will likely need to be paid above the salary minimum in order to qualify for an S Pass.
Analysis & Comments: The Jan. 1 qualifying salary will mark a 4.3% increase over this year’s level and a 9.1% increase over the 2018 level. Employers should factor the new salary requirements into their planning.
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. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? Singapore has begun requiring some applicants to have their qualifications verified as part of the application process for Employment Passes, S Passes and Training Employment Passes.
What does the change mean? Employment Pass, S Pass and Training Employment Pass applicants whose college or university is not listed on a Ministry of Manpower online pull-down menu will be prompted to have their diplomas and above qualifications verified by a global verification agency.
Additional information: Employment Pass, S Pass and Training Employment Pass applicants are required to provide a copy of their diploma and above qualifications in order to submit an application. The Ministry of Manpower has been stringent when assessing work pass applications and, at its discretion, may request verification proof for an applicant’s qualifications.
Analysis & Comments: The change will add an administrative step for some Employment Pass, S Pass and Training Employment Pass applicants. Employers may need to make slight adjustments to timelines for employees who have to complete the additional step.