Compliance
Essential Guide to the Employment of Foreign Manpower Act (EFMA) and Labour Supply Regulations

If you’re considering using an Employment Agency (EA) to apply for Employment Passes (EP) or Work Permits, be aware that this can present significant risks if not done properly. The Employment of Foreign Manpower Act (EFMA) provides a framework for employing foreign workers in Singapore and ensures their well-being, but it also comes with strict regulations and penalties for non-compliance. Here’s what you need to know about the EFMA and the rules governing labour supply services.


Understanding the Employment of Foreign Manpower Act (EFMA)


The EFMA governs the employment of foreign employees in Singapore, detailing the responsibilities of employers and the regulations surrounding work passes. The Act includes:


- Regulations for Work Passes: This covers Employment Pass, S Pass, and Work Permit applications and management.

- Enforcement and Penalties: It outlines the consequences for failing to comply with the Act.


Key Responsibilities for Employers


Under the EFMA, employers must fulfill several key responsibilities related to work passes:


- Application and Cancellation: Properly apply for and cancel work passes as needed.

- Medical Insurance and Levy: Ensure foreign employees have the required medical insurance and that levies are paid.

- Repatriation: Arrange for the return of employees to their home countries when necessary.


Employers should also address the following employment conditions:


- Salary and Compensation: Comply with agreed salary terms.

- Working Hours and Leave: Adhere to regulations on work hours, overtime, rest days, and leave entitlements.

- Public Holidays: Ensure employees receive their entitled public holidays.


It is strongly recommended to have a written employment contract that outlines these conditions clearly.


Special Considerations for Migrant Domestic Workers (MDWs)


Migrant Domestic Workers have specific regulations under the EFMA that are separate from those in the Employment Act. For detailed guidelines on MDW entitlements, including rest days and general well-being, please refer to the appropriate resources.


Regulations on Labour Supply Services


The Ministry of Manpower (MOM) enforces strict guidelines for Employment Agencies (EAs) involved in supplying labor. EAs must ensure that their services comply with regulations for sectors like construction and process industries, or have explicit approval from MOM.


If your EA is engaged in unauthorized labor supply practices, you must correct any related contracts and arrangements immediately. MOM will conduct inspections to ensure compliance, and violations may lead to severe penalties.


Penalties for Non-Compliance


Common Offences:


- Employing Without a Valid Work Pass: Fines of $5,000 to $30,000, imprisonment up to 12 months, or both. Repeat offenders face mandatory imprisonment and higher fines.

- Violating Work Pass Condition: Fines up to $10,000 or imprisonment for up to 12 months.

- Providing False Information: Fines up to $20,000 or imprisonment for up to 2 years.

- Receiving Money for Employment: Fines up to $30,000 or imprisonment for up to 2 years.

- Fraudulent Work Pass Applications: Imprisonment from 6 months to 2 years and fines up to $6,000, with possible caning.


Infringements:


- Illegal Deployment: Up to $10,000.

- Regulatory Violations: Up to $10,000.

- Salary Deductions: Up to $20,000.

- Phantom Workers: Up to $20,000.


Failing to adhere to corrective directions can result in additional legal action.


Reporting and Appeals


If you suspect a breach of work pass regulations, report it through the Ministry’s hotlines or online feedback forms. If issued a Notice of Infringement, you may respond and appeal decisions made by the Commissioner for Foreign Manpower. Appeals can be made to the Appeal Board if needed.


For further details on EFMA regulations and labour supply services, consult the Ministry of Manpower’s official resources.


By understanding and adhering to these regulations, you can better manage the risks associated with employing foreign manpower and ensure compliance with Singapore's employment laws.