Your Guide to Hiring in Singapore (Part 2)

Your Guide to Hiring in Singapore (Part 2)

In the course of running your business, you may need to hire different types of employees – foreigners, part-timers, flexible workers and seniors. For each, there are regulations governing how they should be treated.

Your Guide to Hiring in Singapore (Part 2)

As the boss, you should familiarise yourself with them.
 
1. Hiring foreigners – Employment of Foreign Manpower Act (EFMA)
Foreigners are protected under this Act that covers application and cancellation of work passes, medical insurance, levies and repatriation. Salary, work hours, rest days including public holidays, annual leave and sick leave are also regulated by the Act.
 
Before a foreigner can work in Singapore, he needs to get a work visa issued by the Ministry of Manpower (MOM). There are three types of work visas:
• work permit for basic skilled workers from an approved country
• S Pass for mid-level skilled foreigners such as technicians
• Employment Pass (EP) for experienced Professionals, Managers and Executives (PMEs)
 
After several years of welcoming foreign PMEs, the government has become stricter in issuing EPs. Now, employers have to prove:
• they tried to hire Singapore workers first for the position
• they are committed to developing Singapore workers in their company
• the extent of the company’s contribution to Singapore’s economy and society
The proportion of foreigners in the company also comes into play.
 
Fall short in any of these three areas and you will find it difficult to renew EPs of your foreign workers or get passes for fresh foreign hires. There’s even a watchdog that checks up on companies. The Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) investigates businesses and recommends to MOM employers who should be put on a watch list.
 
Where to find out more:
http://www.mom.gov.sg/legislation/employment-of-foreign-manpower-act
 
 
2. Hiring part-timers – Part-time Employment (under the Employment Act)
If your employee works 35 hours or fewer a week, he is considered a part-timer. Anything more than those hours, he is entitled to overtime pay. If yours is a five-day work week, he is still entitled to a day’s rest. He also gets public holidays off, and annual and sick leave. If he works on public holidays or forgoes his annual leave, he has to be paid.
 
Where to find out more:
http://www.mom.gov.sg/employment-practices/part-time-employment

3. Hiring flexible workers - Flexible Work Arrangements (FWA)Flexi-work arrangements (FWA) can be particularly helpful for start-ups. From staggered start and end times to flexible hours, telecommuting, compressed work schedule and job sharing, FWA allows you to maximise productivity while minimising costs.
 
There are no laws specific to this set of workers but there are guidelines that can help you successfully implement FWA in your business.
 
Where to find out more:
http://www.mom.gov.sg/~/media/mom/documents/employment-practices/tripartite-advisory-on-fwas.pdf

4. Hiring seniors - Retirement and Re-employment Act (RRA)
With Singapore’s ageing population, you will eventually have to deal with older workers. Under this Act, the minimum retirement age is 62. This protects any Singaporean and permanent resident whom you have hired before he is 55 from forced retirement before then. After that, these senior workers can be re-employed till they are 65.
 
From 1 July 2017, the retirement age will be pushed up to 65 and re-employment, up to 67. If you can’t re-hire the worker, you can transfer the re-employment obligations to another employer. Otherwise, you will have to pay an Employment Assistance Payment (EAP). This can come up to anything between S$4,500 and S$10,000.
 
Where to find out more:
http://www.mom.gov.sg/employment-practices/re-employment

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