Hiring the right employees is an important decision that a business needs to make once the company is incorporated. The few important questions that any company might want to answer before hiring employees or Recruit Foreign worker like;
- What are the labour laws?
- What are the laws to hire foreign employees
- What does hiring an employee cost?
- What are the statutory requirements
- Are there any recruitment guidelines to be followed?
- Are there any restrictions on the number of employees hired ?
- Is there any distinction in hiring full, part time and contract employees?
In this blog we are going to mainly deal with how to hire or recruit foreign workers for your Retail business.
Under the employment Act, the employees must have a valid work permit visa to work in Singapore. The employer should apply for a work permit on his/her behalf. There is a restriction on the number of employees that can be hired by the employer.
Classification of workers
The workers can be classified into
- Skilled workers – fr eg: engineers, doctors etc who are given an employment pass
- Semi-skilled workers – for eg: technicians, chefs etc who are given an S pass
- Unskilled workers – for eg: domestic help, construction workers etc who are given a work permit.
Work pass in a Glance
| Suitable for | Skilled | Semi skilled | Unskilled |
| Remuneration | >3000 | >2000 | <2000 |
| Validity | Issued for 1-2 years , renewable | Issued for 1-2 years , renewable | Issued for 1-2 years , renewable |
| Quota System | No | 20 percent of the workforce | Variable |
| Dependants Pass | Yes | YEs | No |
| REstriction on Nationality | No | No | Yes |
| Levies | No | Foreign Worker Levy | Foreign Worker Levy |
Singapore Work Permit Schemes For Foreign Professionals
1.Employment pass scheme
2.Personalised Employment Pass SCheme
3.S Pass Scheme
4.Miscellaneous Work Pass Scheme
5.Other Immigration Visa Schemes
PROCEDURE FOR APPLYING
1. EMPLOYMENT PASS
| Step | Requirements | Outcome |
| 1. Employer/EA submits an application | Written consent from the candidate to apply for Employment Pass Fill out application on EP Online$70 application fee Check status of application online after 3 weeks If pass is approved, log in to EP Online and print the in-principle approval (IPA) letter | In-principle approval or rejection letter |
| 2. Employer/EA gets the pass issued | Make the request on EP Online within 6 months of IPAPay $150 per issued pass, and $30 per Multiple Journey Visa (if applicable)Print notification letter, which is valid for 1 month from date of issue and should be given to the candidate to facilitate travel while waiting for the pass card Take note if candidate has to register fingerprints and photograph. | Notification letter |
| 3. Candidate registers fingerprints and photograph (if required) | Candidate has to register within 2 weeks after pass is issued (if required)Make an appointment for the candidate to visit the Employment Pass Services Centre (EPSC). Take note of items candidate should bring: original passport, appointment letter, notification letter, documents specified in the IPA and notification letters | Acknowledgement of card delivery |
| 4. Authorised recipients or candidate receive(s) the card | Employment Pass card will be delivered to the given address 4 working days after registration | Employment Pass card |
| 5. Employer returns old card (if any) | Candidate’s old pass card (if any) must be posted back to the Work Pass Division of the Ministry of Manpower | Use EP Online to confirm MOM received old card |
2. S PASS
| Step | Requirements | Outcome |
| 1. Employer/EA submits an application | Written consent from the foreign worker to apply for S Pass Fill out application on EP Online$60 application fee Check status of application online after 3 weeks If pass is approved, log in to EP Online and print the in-principle approval (IPA) letter | In-principle approval or rejection letter |
| 2. Employer/EA gets the pass issued | Make the request on EP Online Pay $80 per issued pass Print notification letter, which is valid for 1 month from date of issue and should be given to the candidate to facilitate travel while waiting for the pass card Take note if the candidate has to report to MOM Services Centro – Hall C to register fingerprints and photograph. | Notification letter |
| 3. Candidate registers fingerprints and photograph (if required) | Candidate has to register within 1 week after pass is issued (if required)Make an appointment for the registration Take note of items candidate should bring: original passport, appointment letter, notification letter, documents specified in the IPA and notification letters | Acknowledgement of card delivery |
| 4. Authorised recipients or candidate receive(s) the card | S Pass card will be delivered to the given address 4 working days after registration | S Pass card |
| 5. Employer returns old card (if any) | Candidate’s old pass card (if any) must be posted back to the Work Pass Division of the Ministry of Manpower | Use EP Online to confirm MOM received old card |
3. WORK PERMIT PASS
| Step | Requirements | Outcome |
| 1. Employer/EA submits an application | Written consent from the foreign worker to apply for Work Permit Fill out application on WP Online$30 application fee Check status of application online after 1 week | In-principle approval or rejection letter |
| 2. Employer/EA prepares for worker’s arrival | Prior to worker’s arrival: Purchase security bond (for non-Malaysian workers)Purchase medical insurance for worker After worker’s arrival: Register worker’s residential address using Online Foreign Worker Address Service (OFWAS)Send worker for medical examination by Singapore-registered doctor within 2 weeks of arrivalComplete Security Bond form | Security bond, insurance, etc. |
| 3. Employer/EA gets the permit issued | Make the request on WP Online Pay $30 per issued Work Permit Print notification letter, which is valid for 1 month from date of issue and should be given to the foreign worker to facilitate travel while waiting for the Work Permit card Take note if worker has to report to MOM Services Centre – Hall C to register fingerprints and photograph. | Notification letter |
| 4. Candidate registers fingerprints and photograph (if required) | Worker has to register within 1 week after pass is issued (if required)Make an appointment for the registration Take note of items worker should bring: original passport, appointment letter, notification letter and documents specified in the letter | Acknowledgement of card delivery |
| 5. Employer or authorised recipients receive the card | Work Permit card will be delivered to the given address 4 working days after registration | Work Permit card |
| 6. Employer returns old card (if any) | Worker’s old pass card (if any) must be posted back to the Work Pass Division of the Ministry of Manpower | Use WP Online to confirm MOM received old card |
KEY FEATURES OF EMPLOYMENT ACT
| FEATURES | MANAGERS | EMPLOYEES EARNING>2000 | EMPLOYEES EARNING <2000 |
| Max hours per week | 40-50 hours | 40-50 hours | 44 hours |
| Max days of work per week | 5 | 5 | 6 |
| Overtime | Not applicable | As per contract | Max 72 hours per month |
| Bonus | As per contract | As per contract | As per contract |
| Paid Annual Leave | As per contract | As per contract | Variable |
| Maternity Leave | 16 weeks | 16 weeks | 16 weeks |
| Annual childcare leave | 6 days | 6 days | 6 days |
| Public Holidays | 11 days | 11 days | 11 days |
| Termination Notice | As per contract | As per contract | As per contract |
| Medical Insurance | As per contract | As per contract | As per contract |
| Probation period | 6 months | 6 months | 3-6months |
CONCLUSION
Companies hire foreign employees due to the non availability of skilled local talent and therefore have to resort to hiring foreign manpower.
for more details : Reachautoerp