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IMPACT – MEDIUM
What is the change? The Ministry of Manpower (MOM) has announced a new category of exemption from labor market testing that is part of its “Fair Consideration Framework” that takes effect in August.
What does the change mean? The exemptions now include intracompany transferees (ICTs) that meet certain criteria, in addition to companies with less than 25 employees and new hires earning over 12,000 SGD per month.
Background: The Ministry of Manpower will impose new labor market testing requirements on employers under its Fair Consideration Framework. Under the new regulations that take effect on Aug. 1, employers will be required to post job ads to a newly created National Job Bank – intended to be a one-stop shop for all available jobs in Singapore. Generally, employers must post a job ad for at least 14 days before applying for an Employment Pass (EP) for a foreign worker.
At a presentation last week, MOM officials announced that intracompany transferees are exempt from the advertising requirement. MOM previously carved out two other exempt categories – companies with less than 25 employees and jobs paying a minimum fixed monthly salary of 12,000 SGD per month.
“The current exemptions may be expanded as MOM monitors reactions to the Fair Consideration Framework and industry feedback,” said Christina Karl, director of BAL’s Asia office in Singapore, who attended the MOM presentation. To qualify as exempt, an ICT must be an executive, professional or specialist that meets MOM criteria for those categories or a manager with at least one of the following responsibilities: directs the organization or a department or subdivision; supervises other managerial employees; makes personnel decisions; or exercises discretionary authority over day-to-day operations. In each case, the ICT must have worked for the overseas affiliate of a Singapore company for at least one year.
MOM also confirmed that the job advertising requirement only applies to new EP applications. Renewal applications and applications for other types of work passes such as the S-Pass or Training Employment Pass do not need to include proof that an advertisement was posted on the National Job Board.
BAL Analysis: The ICT exemption is good news for employers, since a significant number of new EP applications may potentially fall within the criteria.
This alert has been provided by the BAL Global Practice group in Singapore. For additional information, please contact singapore@bal.com.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
IMPACT – Medium
Telephone, email and web scams targeting immigrants have spiked in the past year.
Immigration authorities in Europe, Asia, Australia and the U.S. have warned foreigners about fraudulent calls.
Last week, several universities in the U.K. reported that some international students received suspicious calls from individuals posing as immigration officers from the U.K. Home Office. In France, police are investigating ongoing telephone fraud in which callers demand that foreign nationals pay immigration fees to complete their paperwork.
Such occurrences are becoming more commonplace worldwide, and even savvy travelers should be vigilant. In October, BAL reported telephone scams targeting foreigners in Ireland and New Zealand. In the United States, the U.S. Citizenship and Immigration Service (USCIS) recently warned about a scam luring foreign investors to buy securities to qualify for an investor visa. Earlier in the year, BAL reported that individuals posing as USCIS officers targeted foreign employees in the U.S. The callers asked for passport and alien numbers, claimed that their documents contained errors and demanded money to fix them. Callers can seem legitimate because they often possess pieces of personal identifying information about their victims, such as home address, birth date and application numbers. Immigration agencies are warning travelers and foreign residents that this information is easy to find online.
In some cases, telephone scammers have “spoofed” their calls so the number that appears on the recipient’s caller ID or mobile phone appear to come from a government agency. Earlier this year, Singapore’s Immigration and Checkpoints Authority alerted the public about suspicious calls appearing to originate from their hotline. In these calls, scammers asked for payment to fix supposed mistakes on travelers’ embarkation/debarkation cards. In another incident, Singapore’s labor ministry recently warned employers and workers not to use a fake copy-cat website.
Immigration officials have recently issued reminders, emphasizing that they do not call customers to collect payment for immigration fees over the phone and that people who receive calls like this should not give out personal details or pay any money.
This alert has been provided by the BAL Global Practice group. For additional information, please contact GlobalVisaGroup@bal.com.
What is new? Approximately 2,600 foreign nationals had their Employment Pass renewal applications rejected in the first half of 2013.
What does it mean? The large drop in Employment Pass renewals is consistent with the Ministry of Manpower’s stated policy of encouraging businesses to reduce their reliance on foreign workers.
Background: In the first half of 2013, approximately 2,600 Employment Pass holders were denied renewal of their passes. More than half of the rejected applications were from the Q1 pass category – the lowest of the three Employment Pass tiers. The industries most affected were wholesale and retail trade, professional services, and information and communications. The renewal denials have contributed to the total number of Employment Passes in Singapore falling to 172,100 as of June, from a high of 175,400 in December 2011. The denials are attributed to stricter qualifications criteria put in place by the Ministry of Manpower in January 2012.
As of January 2012, the Ministry of Manpower raised the minimum monthly salary for the Q1 Employment Pass category from SGD 2,800 to SGD 3,000. The minimum salary will rise to SGD 3,300 starting on Jan. 1, 2014. The minimum monthly salaries for the P2 and P1 categories remain the same (SGD 4,500 and 8,000, respectively). However, the minimum salary requirements generally apply to fresh college graduates, especially in the lower tiers. Older, more experienced applicants must receive a salary that reflects their work experience within the relevant industry.
BAL analysis: Businesses should remain mindful of the government’s efforts to raise the quality of foreign professionals and encourage the hiring of Singaporeans when planning their foreign staffing in Singapore. Increasing the applicant’s salary above the current minimum requirement may improve the chances of an Employment Pass renewal application being approved, especially in the Q1 category. However, employers should also encourage their foreign employees to keep upgrading their skills and education to stay ahead of tightening qualifications requirements.
Clients are reminded to refrain from using any language in job advertisements that could be construed as expressing bias. For the second time this year, the Ministry of Manpower (MOM) has cracked down on employers for using discriminatory language in job ads. Just two days after announcing new, more stringent regulations for employment passes, MOM has imposed penalties on 10 companies. The penalties include having to post public apologies online for 30 days, and being barred from hiring new foreign workers for seven months.
The penalized employers were found to use various discriminatory statements in their job ads, which included preferences for age, race, nationality or gender. Among the companies are five employment agencies, which may face additional penalties such as demerit points. In March, MOM imposed similar penalties on two other employers for using biased hiring practices.
On June 6, the Ministry of Manpower (MOM) launched a new S-pass card delivery service for work pass holders and their dependents. The service has several features designed to ensure that the card is securely delivered to the correct person. The new service means that during the initial or renewal application process, the work pass holder will be asked for information on how to deliver the S-pass card.
Security features include:
The card will only be delivered in person to an authorized recipient. Up to three people may be designated to receive the card, such as the work pass holder, his or her employer, and a company representative. The MOM official will check each recipient’s identification.
The authorized representative must be present at the designated delivery address to receive the card. This might be the work pass holder’s home or place of employment.
Once the delivery information has been submitted, it is not possible to change the authorized recipient or designated delivery location. Clients are advised to verify that all information is correct before submitting.
Please note that the secure delivery service will be instituted for other types of employment passes in the third quarter of 2013.
On July 1, the Ministry of Manpower (MOM) will introduce several changes originally announced in February as part of an effort to reduce Singapore’s reliance on foreign workers.