Are the housing needs of your foreign employees met?

In labour-intensive industries, it is possible to overlook basic housing needs for your foreign employees. This issue is even more pressing for the foreign employees who earn a minimal wages to sustain their expenses in Singapore. 

It is the employer’s responsibility to ensure that foreign workers have acceptable housing, which is clearly defined by different government entities in Singapore. Employers are required to update the residential address within 5 calendar days or change of address.  The consequences of not being able to meet basic requirements can affect your future Work Permit applications and renewals. 

It’s really difficult to be able to ensure that foreign workers have acceptable living standards because employees move from one location to another. To prevent any implications, employers should:
 

1. Educate their employees on what is acceptable housing standards, and regularly check their accommodation and make necessary improvements
    
2. Encourage and facilitate information dissemination when foreign workers are finding another place to stay, or if there are any existing problems with their current accommodation
    
3. Carefully select dormitories to house foreign workers or ensure that the housing is approved under the different types of approved housing, subject to industry. 
    

Foreign workers who are Malaysians OR Non-Malaysians from Service or Manufacturing sectors can be housed in HDB flats. Effective from 1 January 2017, employers are to take note that Non-Malaysians from manufacturing sector are only allowed to rent individual room instead of an entire HDB flat.

Reference: http://www.mom.gov.sg/passes-and-permits/work-permit-for-foreign-worker/sector-specific-rules/housing-requirements

Changes from MOM (Strengthening the core of PMEs)

It has very well been established that for companies to apply for Employment Pass, companies with more than 25 headcounts should have posted their advertisement on Jobs Bank for at least 14 days to strengthen the Singaporean Core of PMEs. 

Effective from 01 October 2015, Companies should indicate a salary range on Jobs Bank. Companies who do not adhere to this practice are at risk of having their Employment Pass rejected. This will assist in ensuring transparency between Singaporean candidates and employers in the market, and will ensure proper communication. 

The Ministry of Manpower (MOM) will place emphasis on Employment Pass applications on firms who have a lesser Singaporeans who are under the Professional, Managers and Executives (PMEs) category in comparison to its industry players. To verify, MOM can require more information and statistics to ensure that Singaporeans were considered first.
Efforts have been established to ensure that Singaporean PMEs are constantly upgrading themselves to ensure they remain employable. Initiatives such as Workforce Development Agency (WDA) and (Employment and Employability Institute) e2i will roll out a Career Support Programme (CSP) have already been in the pipeline. Even when mature Singaporean PMEs have joined, efforts have been established to orientate them into the new environment where external and on the job training will be implemented.  

The Singapore government have also constantly recognised and encouraged employers to employ mature Singaporean PMEs. Organisations that hire mid-level Singaporean PMEs who have been looking for jobs for at least six months, and are being paid at least $4000 will be given wage support based on the following table. 

The Employment Claims Tribunal (ECT) was also established in the first quarter of 2016 for PMEs who earn more than $4500 and who are not covered by the Employment Act for conflict resolution pertaining to statutory and contractual salary. 

http://www.mom.gov.sg/newsroom/press-releases/2015/0708-enhanced-support-for-singaporean-pmes

Singapore Budget 2016: Foreign worker levy increase deferred in marine and process sectors

It has been announced during the Singapore Budget 2016 for the amendments to the Work Permit Holders Levy Schedule. 

It should be noted that all of the sectors have an increase in the Levy Rates except for the Marine, Process and Manufacturing Sectors. This reflects the government’s stance towards encouraging companies to hire more Singaporeans and to reduce their dependence on foreign labour. The decision to strengthen the “Singaporean Core” is still very much emphasized. 

It is more interesting to understand the reasons why foreign worker levy increment in Marine and Process Sectors are deferred. The reason that was provided is because of “reduction of Work Permit holders and this sector’s challenging business conditions” 

All employers should take note that the effective date of change of Levy Rates are on 1st July, 2016 and should account for this into their hiring practices. The Construction Sector should note that there is a further increase in the levy rates on 1st July, 2017. 

To encourage companies to retain experienced workers to enhance productivity in the Construction and Process Industries from the Non-traditional sources, the minimum experience requirement for man-year entitlements (MYE)-waiver workers will be increased from two to three years, effectively from 1st July 2017.

Source:
http://www.straitstimes.com/business/economy/singapore-budget-2016-foreign-worker-levy-increase-deferred-in-marine-and-process