Singapore’s Employment of Foreign Manpower Act Now More Punitive

The new punitive structure introduced by the amended Employment of Foreign Manpower Act will ensure stricter compliance to Singapore’s work pass regulations, says AsiaBiz Services.

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Singapore Incorporation Specialists

A more punitive platform will ensure compliance to foreign worker regulations, and perhaps ultimately eradicate delinquent practices for Singapore work visa applications among employers.

Singapore (PRWEB) November 15, 2012

Singapore has amended its Employment of Foreign Manpower Act (EFMA), and the changes are in effect starting 9 November 2012.

A key component of the amended Bill is a new administrative penalty regime that gives the Ministry of Manpower (MOM) enhanced enforcement capabilities to punish administrative infringements.

For Singapore company incorporation consultancy AsiaBiz Services, imposing a new punitive structure is a welcome move, as this will ensure stricter compliance with the Republic’s work pass regulations.

Under the amended EFMA, a financial penalty will be imposed on administrative violations for activities that do not directly harm employees and are not criminal offenses outside of MOM’s jurisdiction. These include, among others, an employer who does not pay S Pass holders via e-payment salary methods, or foreign workers and their employers who submit forged educational certificates in their S Pass or Employment Pass applications.

For every infraction, Commissioners for Foreign Manpower are now authorized to impose fines of up to $20,000. New infringements with more severe penalties may also be created to achieve stricter compliance.

In addition, the amendment further expands the range of MOM’s investigatory powers, which now include the right to enter and inspect private premises to conduct audits upon suspicion of EFMA violations.

Commenting on the amended EFMA, Mr. James Nuben, Head of Taxation at Asiabiz Services, said, “The new administrative penalty regime is an excellent way to crack down on errant entities that insist on bending the rules. A more punitive platform will ensure compliance to foreign worker regulations, and perhaps ultimately eradicate delinquent practices for Singapore work visa applications among employers.”

“As the business capital of Asia, we must ensure that our regulatory system leaves no room for errant practices. Consistent with this goal, the revised EFMA will ensure a fair and balanced environment for domestic firms as well as foreign investors who opt for form a Singapore company,” he concluded.

Meanwhile, MOM is developing a second tranche of the EFMA review, with workers’ well-being as the primary focus. In the next phase, MOM will implement regulations to ensure a fair balance of rights and responsibilities between employers and their employees.

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Asiabiz Services is a Singapore-based consultancy that offers business solutions for both local and foreign professionals, investors and entrepreneurs. Our areas of expertise include Singapore company registration, offshore company setup, accounting, taxation and other related corporate services. Asiabiz Services also provides Singapore work visa and immigration services for foreign professionals wishing to relocate to Singapore.

120 Telok Ayer Street, Singapore 068589
Phone: +65 6303 4614



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