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:
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.
The Indonesian Ministry of Manpower (MOM) is enforcing the requirement for foreign nationals to submit additional documents to apply for long-term work permit (IMTA) extensions. Although this was previously stated in the regulations, the MOM did not strictly enforce these requirements until recently.
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.
The Ministry of Manpower has narrowed the scope of the allowable specialized skills that foreign nationals under the Work Pass Exempt (WPE) category can perform, and has removed software installation from the allowable activities list. The activities that are now eligible for a Work Pass exemption are providing expertise related to commissioning or audit of a new plant and equipment, and installing, dismantling, transferring, repairing or maintaining machines or equipment.
The Ministry of Manpower (MOM) has issued an amended regulation that reverses most of the controversial new requirements issued in July (which had been implemented progressively since then). Among other changes, the local to foreign worker ratio and the rule for non-resident directors and commissioners to obtain a work permit have been removed.
Following the announcement of stricter and broader work authorization-related rules for foreign workers in June, the Ministry of Manpower (MOM) has further clarified the changes, which were proposed in an effort to protect the local workforce. Generally, the rules have been implemented, but contrary to previous reports, an internal review of the proposed changes is being conducted by the MOM instead of having a public comment period before implementation of some of the more significant changes.
