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Minister of Manpower Lim Swee Say responded Tuesday to a question from Parliament asking how a well-known restaurant chain was able to secure 20 employment passes based on false salary declarations and what safeguards are in place against employment pass abuse.
In a written response, Say explained the tools the agency uses when it suspects false statements on applications, including seeking independent verification of an employee’s qualifications, requesting additional proof that the employer is able to pay the salaries, and/or auditing the employer.
“Strong action is taken against those who make false declarations in work pass applications,” including fines of up to $20,000, two years of jail and a ban on hiring or renewing work passes, Say added.
Regarding the specific case, Say said that the 20 passes were approved because they initially met all criteria. Later, when the salary declarations were found to have been inflated, the employee who made the declarations was convicted and fined $40,000.
Companies that exhibit signs of unfair employment practices will be more closely scrutinized when applying for employment passes, and if they do not take corrective action, the government may suspend work pass privileges, Say said.
BAL Analysis: The Ministry of Manpower has been actively prosecuting false work pass declarations, having convicted 58 employers since 2014. The question to Say indicates that Parliament is also interested in the issue of employment pass abuse. Employers should review their policies to ensure they are in compliance with all immigration rules and regulations.
This alert has been provided by the BAL Global Practice group in Singapore. For additional information, please contact singapore@bal.com.
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IMPACT – HIGH
What is the change? The minimum monthly salary for Employment Passes will increase from 3,300 Singapore dollars to SG$3,600 (about US$2,660).
What does the change mean? The higher salary requirement will take effect Jan. 1, 2017 for new Employment Pass applicants, and a transition schedule will be in place for applicants renewing existing passes.
Background: The Ministry of Manpower announced the increase Tuesday as part of its regular salary adjustments to keep pace with rising local wages, maintain the quality of the foreign workforce and enhance the competitiveness of local workers. The last salary adjustment for Employment Passes was in January 2014, when the minimum was raised from SG$3,000 to SG$3,300 per month.
New applicants filing after Jan. 1, 2017 must meet the new salary thresholds. For existing Employment Pass holders, the ministry will provide a period for businesses to adjust, using the following schedule:
The ministry also recommended that employers use the Self-Assessment Tool (SAT) on the agency’s website to assess whether candidates will meet the new salary criteria. The SAT will be updated in November.
BAL Analysis: Employers should begin reviewing the current salaries of employees holding Employment Passes and plan ahead for the renewals if necessary. This increase to minimum salaries is one of many recent measures that tighten the Employment Pass eligibility of foreign workers.
IMPACT – MEDIUM
What is the change? In another prosecution over work-pass fraud, a company director who falsely stated foreign workers’ salaries has been fined 21,000 Singapore dollars (about US$15,500) and banned from hiring foreign employees.
What does the change mean? This is the latest case in an ongoing campaign by the Ministry of Manpower to investigate companies for making false or fraudulent declarations regarding foreign workers. Since 2014, the ministry has prosecuted 55 employers in for falsely declaring the salaries of foreign workers.
Background: The case involved an engineering company whose owner filed 10 S-Pass applications stating that the workers would be paid the required minimum salary of SG$2,200 per month. After the S Passes were granted, the workers were paid SG$2,200 per month, but were forced to remit SG$800 per month to the company through a former employee.
The owner pled guilty and was fined SG$21,000 in default of nine months of imprisonment on three of the 10 charges. The remaining seven charges are under consideration. The owner and his company have also been barred from hiring foreign workers.
According to the ministry, the former employee will also be prosecuted for receiving kickbacks, an offense which is punishable by SG$30,000 in fines, two years’ imprisonment, or both.
BAL Analysis: Employers in Singapore should be aware of the heightened enforcement environment and conduct a review to ensure that they are in compliance with all regulations.
What is the change? Singapore and the United States have launched a bilateral program allowing pre-screened travelers to register as trusted travelers and move through airports without waiting in line.
What does the change mean? Eligible citizens of Singapore and the U.S. who register for the respective programs will be able to use automated immigration clearance gates at designated airports, facilitating business travel and tourism between the two countries.
Next steps: U.S. passport holders who are already members of the U.S. Global Entry Program may apply online for Singapore’s “Enhanced Immigration Automated Clearance System” (e-IACS). Singapore passport holders may apply for the U.S. Trusted Traveler Program through the Global Entry Program website and schedule an interview at the U.S. Embassy in Singapore or at a Global Entry Enrollment location in the U.S.
Background: U.S. citizens applying for e-IACS must have visited Singapore at least three times in the previous 12 months and their passport must continue to be valid for at least six months.
Singaporean citizens applying for the U.S. Trusted Traveler Program must pay a non-refundable US$100 application fee and sit for biometrics and an interview with a U.S. Customs and Border Protection official, who will determine final eligibility. Interviews at the U.S. Embassy in Singapore will be scheduled every Wednesday and may be expanded based on demand. If approved, the membership is valid for five years.
BAL Analysis: The programs will facilitate business trips for frequent travelers. The Trusted Travel Program allows faster entry clearance than APEC fast lanes, as members of the Trusted Travel Program do not need to be questioned by immigration officers. They are also eligible for TSA pre-screening at participating international airports before boarding a flight to the U.S. The program does not replace the need to obtain an appropriate visa, Electronic System for Travel Authorization or work permit before travel.
This alert has been provided by the BAL Global Practice group and our network provider located in Singapore. For additional information, please contact your BAL attorney.
What is the change? The Singapore Police Force has introduced an electronic application process for criminal record clearances, known as certificates of clearance, typically requested by Singaporean citizens and foreign residents who need to demonstrate a clean criminal record.
What does the change mean? Walk-in service has been discontinued. The online system will make the process more convenient and shorten the overall wait time for the certificates. Although applicants must appear in person to give fingerprints, they will be able to pick up their certificate on the same day as the appointment.
Background: Previously, applicants could request police clearances on a walk-in basis, and processing took about two weeks. Under the electronic system, applicants can apply, pay and book a fingerprint appointment online. They must appear at the police office to give their fingerprints, and may pick up the certificate on the same day.
BAL Analysis: All applicants should apply online through the Singapore Police Force e-services website. BAL can also assist in the process.
What is the change? Singapore citizens, permanent residents and work pass holders are reminded of the July 4 deadline to activate their SingPass 2-factor authorization (2FA) for access to more than 100 e-services across various government websites, including Employment Pass Online and Work Permit Online.
What does the change mean? All users who have not activated their SingPass 2FA should do so immediately by following the steps on their PIN mailer. As of July 5, users will not be able to log in without their SingPass 2FA. Administrators and users of company Employment Pass Online and Work Permit Online portals will need to activate their 2FAs to be able to submit work pass applications.
Background: The Ministry of Manpower reminded users in April that the SingPass 2FA would become mandatory July 5 for all users logging on to perform select e-transactions with government websites. The two-step verification is intended to protect personal data and prevent security breaches.
BAL Analysis: Users who have not already activated their SingPass 2FA should do so immediately. Those who do not have a PIN mailer may request a new one by sending a text message to 78111 from the same mobile number registered with their SingPass account. The format of the message should be “Resend PIN mailer” followed by the appropriate NRIC Postal Code, e.g., “Resend PIN mailer S1234567A 098765.”
What is the change? The Immigration and Checkpoints Authority is warning the public of a new fake ICA website (www.ica-spg.org) that phishes for visitors’ personal information such as National Registration Identification Card and passport numbers.
What does the change mean? The authority emphasized that the public must exercise caution and ensure that they use the correct website and official ICA website at www.ica.gov.sg for all informational and transactional needs concerning ICA matters.
Background: This year, at least six reported fake government websites have been reported, and this is not the first for ICA. The government agency said that a police report has been made against the latest site and is working to have it taken down. ICA has issued an official statement reassuring the public that access to the official ICA website is unaffected and that no data have been compromised.
BAL Analysis: With the growing number of fake government websites, companies and individuals should make sure that they are using the correct and official websites for immigration transactions.
What is the change? All foreign visitors to Singapore will be required to scan their thumbprints under a new BioScreen system every time they arrive and depart the country.
What does the change mean? Travelers should expect longer lines at manned airport counters. However, eligible travelers who enroll in the enhanced Immigration Automated Clearance System (eIACS) will be able to bypass the BioScreen process.
Background: BioScreen was piloted at select locations last year and is now being rolled out at all entry and exit points. The Immigration and Checkpoints Authority said it is introducing the thumbprint scans to strengthen its verification of travelers’ identities.
BAL Analysis: Foreign visitors should expect travel delays at borders as the new system is introduced.
What is the change? Starting July 5, the Ministry of Manpower will require all Employment Pass Online (EPOL) and Work Permit Online (WPOL) administrators and users to log in with their “2 Factor Authorization” (2FA).
What does the change mean? EPOL and WPOL administrators and users who fail to set up their 2FA by July 5 will not be able to perform sensitive government electronic transactions.
Background: The two-step verification (2FA) was introduced as an option in 2015 to better protect personal data and to counter rising security threats. This February, the Ministry of Manpower began requiring new EPOL and WPOL administrators and users to use their 2FA when logging in to the respective websites. On July 5, it will be mandatory for all EPOL and WPOL administrators and users.
Government agencies such as the Ministry of Manpower, the Central Provident Fund, the Inland Revenue Authority of Singapore and the Accounting and Corporate Regulatory Authority will require the 2FA for users to be eligible to perform more than 100 electronic transactions.
BAL Analysis: Government agencies, in particular the InfoComm Development Authority, have indicated that electronic services would continue to be developed to ensure that they are as user-friendly as possible without compromising security.
What is the change? The Ministry of Manpower has streamlined the process for applicants seeking a letter of consent (LOC). The declaration form that is part of the approval process may now be submitted along with the online LOC application, instead of being submitted after initial approval.
What does the change mean? Applicants no longer need to mail the signed declaration form manually to the ministry once the LOC application has been approved.
Background: The letter of consent grants work authorization to dependent pass holders and spouses of Singapore citizens or permanent residents who hold a long-term stay pass. Once the LOC application is approved, an in-principle approval letter is issued and the applicant must complete the steps listed in the letter to have the LOC issued. Previously, the applicant did not receive the declaration form until after the in-principle approval, and then needed to sign and mail it to the ministry office within three weeks of the approval date. However, in a recent memo sent by the ministry, the declaration form must now be signed by both the employer and employee and included in the documents to be submitted at the application stage.
BAL Analysis: The end-to-end processing of the LOC application can now be completed online, since the manual part of the process has been eliminated. Updates in the process have yet to be reflected in the ministry website at the time of this alert. BAL will continue to monitor and provide further information once authorities make it available.