What is Singapore Employment of Foreign Manpower Act?

If your company intends to hire foreign employees and managers in Singapore, you should be aware that their rights are protected under the Singapore Employment of Foreign Manpower Act. The terms of the act will be explained in this article, as well as your essential responsibilities as an employer under the act.

An overview of Singapore Employment of Foreign Manpower Act

The Employment of Foreign Manpower Act (EFMA) establishes the duties and responsibilities of employers who hire foreign workers in Singapore. The act covers any foreign worker who holds a work pass issued by the Ministry of Manpower (MOM). The work passes may be in the form of an Employment Pass, S Pass, or Work Permit. Although EFMA works in sync with Singapore Employment Act (EA), foreign domestic workers (FDW) are not covered in the EA but only in the EFMA.

The importance of the Singapore Employment of Foreign Manpower Act

The EFMA supports migrant workers in Singapore. The act regulates and protects the well-being of the foreign workforce, as well as sets the responsibilities of employers and intermediaries. Employment agencies are also covered by the act, which includes a set of laws and licensing requirements for hiring foreigners.

Through the EFMA, the MOM coordinates with Singapore agencies such as those concerned with housing, urban planning and environment, labor movement, NGOs, and embassies.

In collaboration with civil society groups, the EFMA also plays an important role in lobbying for foreign employees’ labor rights. The act was revised in 2012 to include a clause allowing domestic employees to have weekly rest days.

The main responsibilities of the EFMA

The Singapore Employment of Foreign Manpower Act outlines the obligations of employers in regards to work permit applications and cancellations, medical insurance, levy, termination of employment, and repatriation.

Foreign employees who are covered by act are entitled to:

• Salary 
• Hours of work, overtime and rest days
• Public holidays
• Annual leave
• Sick leave

Work passes

The issuance of work passes by MOM is one of the many crucial parts of regulating foreign employment. Work passes covered by the EFMA are divided into three categories:

• Employment Pass –  for qualified managers and executives who earn a minimum of $5,000 and higher for candidates in mid-40’s (this new minimum qualifying salary will apply to new applications from the 1st of September 2022 and renewals from the 1st of September 2022).
• S Pass – for mid-level skilled employees who earn a minimum of $3,000 and higher for candidates in mid-40’s (this  will apply progressively from the 1st of September 2022).
• Work Permit – for FDWs and semi-skilled workers in the construction, manufacturing, marine shipyard, or services industry.

Offenses

It is important to understand that the regulation of foreign manpower employment in Singapore is governed by three acts — the Employment of Foreign Manpower Act (EFMA), the Immigration Act, and the Employment Agencies (EA) Act.

The Immigration Act assures that a foreign employee’s arrival and exit is legal. If an immigration offender is discovered at employment, they will face substantial penalties and/or jail. Employers must also check that their international employees’ passes are genuine and accurate.

Hiring the services of unlicensed agencies is likewise illegal. Similarly, if legal agencies execute recruitments on behalf of unauthorized agencies, they risk losing their licenses.

The following are the most common EFMA offenses and penalties, according to the MOM:

Compliance tips for employers

If you intend to hire foreign employees or executives in Singapore, here are two tips you can apply to ensure compliance with the EFMA:

1. Make sure you have a contract in place

Drafting contracts protects both your company and the foreign employee. An experienced local HR manager should also analyze the contract to ensure that the clauses comply with EFMA’s regulations on work permits, levies, medical insurance, severance, repatriation, and other topics covered by the Employment Act.

2. Hire a reputable firm to handle your recruitment

Another option you might use is to outsource the entire process of employing foreign workers to a trustworthy partner. Outsourcing has the extra benefit of relieving your in-house staff and resources of the weight of hiring activities, allowing them to focus on what they do best.

3. Conduct a job discrimination self-audit

As a savvy business owner, you probably know that discriminatory behaviors can expose you to possibly costly employee grievances. Therefore, you need to perform a job discrimination self-audit to ensure that you’re not walking in discriminatory waters. Even if you decide to get external HR services, it is still important to learn about applicable anti-discrimination rules and regulations in Singapore. 

Final words

Some talent shortages can only be filled by hiring foreign workers. If your company is considering hiring foreign staff, it’s critical to make sure your hiring procedure complies with Singapore Employment of Foreign Manpower Act.

In addition to registering your company with ACRA, Biz Atom can also help you apply for work passes required for your foreign employees. Feel free to talk to us about your needs.

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