Letter Of Consent
Presently, dependents of Employment Pass and Personalised Employment Pass holders may qualify for an LOC if they wish to take up employment in Singapore. There is no minimum salary requirement, nor are there quota restrictions imposed on the employing company. There is also no need to undergo the mandatory labour market testing requirement (as part of the Fair Consideration Framework) before an LOC application is filed.
As such, this is an “easier” option for employers who wish to hire dependents in Singapore. The MoM disclosed that LOC makes up a small number of the total work pass holders in Singapore, with only 1% of such passholders in the workforce in total.
Changes Announced
With effect from May 1st 2021, employers are to apply for the relevant work passes (such as Employment Pass, S Pass or Work Permit) if they choose to hire a dependent’s pass holder. The application will be subject to the applicant meeting the prevailing criteria. Companies are also required to advertise the roles in MyCareersFuture (MCF) before the EP or S Pass applications can be filed.
In essence, the process of employing an existing Dependent’s Pass holder will not differ from that of employing any other foreign national in Singapore.
Existing LOC Holders
Those who are presently holding LOCs can continue to work for the same company until the expiry of their existing work authorization. Renewals will no longer be an option beyond May 1st 2021.
Upon expiration of their LOC, the employing company is required to apply for a regular work pass should they wish to continue hiring the employee. It would be worthwhile checking if an exemption to the jobs advertisement requirement can be granted by the MoM on the basis of this being a conversion of pass type for an existing employee. The MoM has assured the public that more details will be released on May 1st to help companies with existing LOC holders prepare for the next steps following cessation of the current work authorisation.
The MoM will also address on May 1st if this change affects the employment of those on Pre-Approved Letter of Consent (PLOC). A PLOC is granted to a Long Term Visit Pass holder who is married to a Singapore citizen.
Implications
It is clear that the MoM is currently reviewing and revising the work pass framework to ensure all vacancies are filled by candidates on their own merit. As the LOC has long been seen as a “shortcut” to employing a foreign national in Singapore, removing it as an option gives a strong sign that the MoM places strong emphasis on fair hiring practices, and in doing so, they are asking for companies to open up all roles to the local market before sourcing for foreign talent.
At the heart of this change in policy is the MoM’s consistent message for companies to foster and nurture a strong Singaporean core within its workforce.