Employers' Responsibilities When Hiring Foreign Manpower: A Guide for Employers in Singapore

Hiring foreign manpower on work passes is a common practice for many businesses in Singapore, especially in sectors such as construction, manufacturing, and services. However, as an employer, it is important to understand your legal responsibilities under the Ministry of Manpower (MOM) regulations. These obligations ensure that foreign workers are treated fairly, and that businesses maintain compliance with the law.

Here’s a breakdown of the key responsibilities that employers must fulfill when hiring foreign manpower on work passes.

1. Timely Payment of Salaries

One of the most critical responsibilities an employer has is the timely payment of salaries to foreign workers. Under Singapore’s Employment Act, employers must:

  • Pay Salaries on Time: Salaries must be paid to foreign workers within 7 days after the end of the salary period. This applies regardless of whether the employee is on a Work Permit, S Pass, or Employment Pass.

  • Provide Itemized Payslips: Employers must issue itemized payslips detailing the worker’s salary, deductions, and any additional benefits. This ensures transparency and helps avoid disputes related to salary payments.

  • Salary Compliance: Employers must also ensure that the salary meets the minimum required for the specific pass type. For instance, Work Permit holders in certain sectors must meet the prevailing salary threshold as set by MOM.

Timely and accurate payment of salaries is crucial to maintaining a good working relationship and is legally mandated to prevent disputes or potential penalties.

2. Provision of Accommodation

Employers are required to provide adequate accommodation for their foreign workers, especially those on Work Permits.

Safe and Suitable Housing: The accommodation should meet basic safety and hygiene standards. If your workers live outside dormitories, ensure that the maximum occupancy laws are met. Remember to update OFWAS with your workers’ latest addresses.

By ensuring that accommodation is provided in a safe and comfortable manner, employers not only comply with legal requirements but also contribute to the wellbeing and satisfaction of their workforce.

3. Providing Medical Insurance

Employers are required to provide adequate medical insurance coverage for their foreign workers. This coverage should include:

  • Hospitalization and Surgical Insurance: Employers must ensure that foreign workers are covered for inpatient medical treatment, including hospital stays and surgeries.

  • Work-Related Injuries: Employers are also obligated to provide coverage for work-related injuries and occupational diseases.

Providing adequate medical insurance coverage ensures that employers are not burdened by unexpected healthcare costs and supports the overall health and safety of the workforce.

4. Providing Safe Working Conditions

Employers must ensure that the workplace is safe and free from hazards. This includes:

  • Compliance with Workplace Safety Standards: Employers should adhere to the Workplace Safety and Health Act (WSH), which outlines the measures to prevent accidents, injuries, and health risks in the workplace. This involves proper training, equipment, and regular safety checks.

  • Safety Equipment: Employers must provide the necessary personal protective equipment (PPE) for workers in hazardous jobs, such as helmets, gloves, and safety harnesses.

  • Reporting of Work Injuries: In the event of a workplace injury, employers must report the incident to MOM and take appropriate actions to address the issue.

By maintaining a safe working environment, employers not only protect their workers but also reduce the risk of work-related accidents and ensure compliance with local laws.

5. Employment of Foreign Workers Within the Terms of the Work Pass

Employers must comply with the conditions outlined in the foreign worker’s work pass. This includes:

  • Adherence to Job Scope: The work performed by the foreign worker must align with the job specified in their work pass application. If the worker is employed in a different role or position, the employer must apply for a new pass or update the current one.

  • Monitoring Work Pass Validity: Employers must keep track of the worker’s work pass expiry date and apply for renewals or extensions on time. Failing to do so can result in penalties or the inability to continue employing the worker.

Maintaining compliance with work pass regulations ensures that both the employer and worker remain legally protected.

6. Allowing Workers to Take Time Off

Employers must provide foreign workers with adequate time off, as stipulated by the law. This includes:

  • Rest Days: Foreign workers are entitled to at least one rest day per week. Employers can request workers to work on a rest day, but they must provide compensation, either in the form of additional pay or an alternative rest day.

  • Public Holidays: Workers are entitled to public holidays, and if they are required to work on a public holiday, the employer must provide either a substitute holiday or additional pay, as per the terms in the employment contract.

Respecting workers’ right to time off helps maintain morale and reduces burnout, leading to increased productivity and loyalty.

7. Do Not Charge Your Workers Money In Return For Employment

Aside from paying the workers’ salaries, employers have to bear the costs of levies, work pass applications and work pass renewals. Recovery of such costs from the workers is not allowed under the law. Forcing workers to pay a fee to the employer in return for a chance at employment is also illegal.

Ensuring transparency and fairness in financial arrangements protects workers from exploitation and supports their financial independence.

Conclusion: Upholding Your Responsibilities as an Employer

By adhering to these key responsibilities, you not only comply with the Ministry of Manpower’s regulations but also create a positive work environment for your foreign employees. Proper management of foreign workers’ well-being, safety, and rights is essential for maintaining a productive and harmonious workplace. Moreover, fulfilling your responsibilities fosters trust, reduces the risk of legal disputes, and contributes to your company’s reputation as a fair and responsible employer.

In short, being proactive in meeting these requirements ensures smooth business operations, minimizes compliance risks, and enhances the overall satisfaction of your workforce. Be sure to regularly review MOM guidelines to ensure your practices remain aligned with the latest regulatory standards.

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