Stricter job ad rules on the way

9 Jul 15

SINGAPORE

IMPACT – HIGH

What is the change? Companies will soon face tougher job ad rules when hiring foreign employees under the Fair Consideration Framework.

What does the change mean? Companies will be required to publish salary ranges for job vacancies in the Jobs Bank and may be required to submit additional information on whether local candidates were considered fairly.

  • Implementation time frame: The new rules will take effect Oct. 1.
  • Visas/permits affected: Employment passes.
  • Who is affected: Employers sponsoring foreign workers for employment passes.
  • Business impact: Increased scrutiny of employment pass applications may increase processing times, and employers will continue to face challenges in bringing in foreign workers to fill certain positions already impacted by skill shortages.
  • Next steps: Companies should prepare for the new rules and make sure they are in compliance or risk rejection of employment passes.

Background: The new measures are a continuation of the Ministry of Manpower’s (MOM) efforts to strengthen core employment of Singaporean Professionals, Managers and Executives (PMEs) and improve the quality assessment of foreign PME applicants.

Beginning Oct. 1, companies must state the salary ranges for PME vacancies in their job advertisements. Employers who eventually apply for employment passes where the job advertisement did not reflect the salary range will have their applications rejected. The rule is intended to make job terms clearer to Singaporean candidates and raise labor market transparency. The ministry will also increase scrutiny of job qualifications presented in support of employment pass applications to ensure that education certificates and other documentation supporting the application are valid and reflect the candidate’s actual skills.

Companies employing a weaker core of local PMEs compared to others within their industry will be required to submit more information to the MOM regarding their hiring practices, such as details on the number of applications submitted by Singaporeans, whether they were interviewed for the vacant post and the company’s current share of Singaporeans in PME positions at various levels.

BAL Analysis: The ministry is actively encouraging employers to transfer expertise from foreign workers to Singaporeans. While the new measures also offer financial help to companies who hire Singaporeans to offset wage costs, the stricter Fair Consideration Framework rules will make it more challenging for companies to hire foreign workers.

This alert has been provided by the BAL Global Practice group in Singapore. For additional information, please contact singapore@balglobal.com.

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