RELO NEWS
Employers can no longer transfer an Employment Pass (EP) holder to a related company in the case of a merger or acquisition without the new employer submitting a new EP application, according to a policy change announced by the Ministry of Manpower (MOM).
Once the new EP is approved, the previous employer can cancel the old EP, without re-advertising the role in the job bank.
Previously, employers could transfer an EP holder to a new company without a new EP application.
The Ministry of Manpower (MOM) now requires that an employer seeking to appoint an Employment Pass (EP) holder currently sponsored by a company in the same corporate group to their board of directors obtain a Letter of Consent (LOC) before the appointment. The LOC must be renewed with each EP renewal.
To qualify for the LOC, the company seeking to appoint the EP holder to its board must prove the following:
Effective immediately, employees holding specialist or rotational positions are no longer eligible for an exemption from the job advertisement requirement for Employment Pass (EP) applications filed at the Central Immigration Department of Kuching, Sarawak.
Therefore, employers filing any EP applications in Kuching, Sarawak, must post a job advertisement on the Malaysia government’s electronic portal.
On or after January 1, 2017, the minimum salary for Employment Pass (EP) applicants will increase from SGD 3,300 (approximately USD 2,427.90) to SGD 3,600 (approximately USD 2,648.62), according to an announcement by the Ministry of Manpower.
The new salary threshold is essentially for young graduates. EP holders with more years of experience will have to earn higher salaries commensurate with their work experience and skill sets, as per current practice.
MYXpats Centre will be introducing non-refundable application fees for Employment Pass, Dependant Pass and Social Visit Pass applications submitted through the Expatriates Service Division (ESD) portal on or after June 1, 2016. Applicants must pay the non-refundable application fees online prior to application submission.
In order to preserve Singaporean employees in the workforce, the Ministry of Manpower (MOM) has started considering a company’s foreign-to-local worker ratio in the review of Employment Pass applications. Employers who have a disproportionate number of foreign employees in their workforce compared to industry standards, and who have not shown a commitment to hire and promote local workers, may find it harder to obtain Employment Passes for their foreign employees.
Employers registered with the Expatriate Services Division (ESD) and the Multimedia Development Corporation Sdn. Bhd. (MDeC) should submit their Employment Pass (EP) projections for 2016 as soon as possible, for both initial and renewal EP applications.
Employers should note that:
