Posted: 11/04/2016 Author: Gareth Leow

Minister of Manpower, Lim Swee Say had announced in the Singapore Parliament on 8April 2016 that the Ministry of Manpower (MOM) will be rolling out measures to refine the Singaporean core across industries.

MOM currently assesses individuals requesting for an Employment Pass (EP) based on their qualifications, work experience and salary. In addition to this, Tripartite Alliance for Fair Employment (TAFEF) will now be conducting related assessments on companies in the following areas:

1) Whether the company has a weak Singaporean core according to industrial norms - i.e. foreign employees exceeding locals in the workplace
2) Weak in commitment to nurturing core - i.e. failing to undertake reasonable efforts to provide fair employment opportunity to Singaporeans but continue to pursue an active foreigner hiring policy
3) Is the company relevant to Singapore's economy - i.e.; will the absence of the company impact Singapore's economy

MOM's policy in strengthening the Singaporean Core is evidenced in EP approval numbers which have seen a 72% drop from 32,000 approved in 2011 to just 9,000 approved in 2015.

At present, how these assessments will take place on the companies is not yet known. Both TAFEP and MOM fall under the Manpower Ministry as different agencies and they work hand in hand when processing EP applications. MOM in the past and present assesses individuals whilst TAFEP is the watchdog. Now, TAFEP will be assessing companies with more scrutiny. If TAFEP has a company on the watchlist, the processing times for the EP will take longer (assuming no outright rejection). Employers will know if they are on the watchlist as TAFEP will send formal notification letters directly.

Impact for HR / Line managers planning to hire foreigners in Singapore

  • EP applications for 'Double Weak' companies will be scrutinised and MOM may ask for more justifications and documentations whereas EP applications for 'Triple Weak' applications will be at high risk of rejection.
  • A 'Double Weak' company (weak in Singaporean core and weak in commitment to nurturing core) will be assessed based on their relevance to Singapore's economy and failing which will be listed as a 'Triple Weak' economy and placed on TAFEP's watch list. Notices have already been sent to 100 companies.
  • For companies who fail the review to be held 6 months upon receipt of a notice from TAFEP, their work pass privileges can be suspended whilst existing EP renewals and processing of new applications will be affected.

Santa Fe has in the recent months seen an uptrend of EP rejections and also more requests from MOM justifying the candidacy of such applications. This is especially true for the IT industry where foreigners make up 37% of the EP workforce compared to the national average of 21%.

Should you have questions please contact:

Gareth Leow

Relocation Services Manager
Santa Fe Relocation Services
Tel: +65 6398 8503
Email: Gareth.Leow@santaferelo.com

Kelis Lee
Immigration Manager
Santa Fe Relocation Services
Tel: +65 6398 8547
Email: Kelis.Lee@santaferelo.com

Santa Fe Group A/S issued this content on 11 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 11 April 2016 10:17:16 UTC

Original Document: http://www.santaferelo.com/news-and-blog/SINGAPORE-Official-Update-Tripartite-Alliance-for-Fair-Employment-(TAFEF)-to-conduct-assessments-on-companies-applying-for-Employment-Pass-(EP)