The Employment Pass (EP) is Singapore’s principal work authorisation for foreign professionals, managers, and executives. It is administered by the Controller of Work Passes, under the Employment of Foreign Manpower Act 1990 (EFMA).
Under this Act, a foreigner is defined as anyone who is not a Singapore citizen or permanent resident. No person may employ a foreigner, or be employed as one, without holding a valid work pass. This legal foundation ensures that all foreign employment is properly regulated, transparent, and in line with Singapore’s broader manpower policies.
The Role of COMPASS in EP Evaluations
To enhance transparency and fairness in EP approvals, Singapore introduced the Complementarity Assessment Framework (COMPASS). Managed by the Ministry of Manpower (MOM), COMPASS evaluates Employment Pass applications on a structured scoring system.
Through COMPASS, MOM assesses both individual and employer-related attributes — ensuring that foreign hires complement Singapore’s workforce. Employers and applicants can make use of MOM’s online tools, including the Employment Pass eService and the Self-Assessment Tool (SAT), to check eligibility before submitting an application.
COMPASS promotes diversity, skills alignment, and local-foreign workforce balance — key pillars supporting Singapore’s long-term manpower sustainability.
Applying for the Employment Pass: Procedures and Requirements
Under the EFMA, every work pass application must adhere to prescribed procedures. The application must be made:
-
In the form determined by the Controller;
-
Accompanied by any prescribed fee;
-
Supported with complete and accurate information, statements, and documents; and
-
Submitted by the person prescribed for that work pass category (usually the employer or authorised employment agent).
In-Principle Approval (IPA)
Once reviewed, the Controller may issue an In-Principle Approval (IPA), a conditional approval that precedes the issuance of the actual pass. The IPA outlines requirements such as medical examinations or document submissions. Importantly, applicants are deemed responsible for the accuracy of all information provided, and any misrepresentation may result in penalties or revocation.
Employment Pass Validity and Scope
An EP is specific to both the employer and the employee named on it. Its validity extends only to:
-
The particular employer-employee pairing listed;
-
The specific occupation, sector, or type of employment authorised; and
-
Any other work type approved by the Controller of Work Passes.
EPs are generally valid for up to two years initially, renewable upon approval and payment of the prescribed fee. However, the Controller retains discretion to suspend, revoke, or refuse renewal based on compliance history or regulatory concerns.
Compliance Obligations and Penalties under EFMA
Compliance with all EP conditions is essential. Both employers and employees must ensure adherence to regulatory conditions imposed by the Minister or Controller. Failure to comply can result in financial penalties, debarment, or even criminal prosecution.
A. Regulatory Conditions and Financial Penalties
Failure to meet any condition of an IPA or EP can result in a fine up to S$10,000. Such conditions may include reporting obligations, employment restrictions, or documentary requirements tied to COMPASS or other manpower policies.
B. Offences and Debarment
The EFMA establishes several key offences, such as:
-
False Statements: Knowingly submitting false or misleading information carries penalties of up to S$20,000 or 2 years’ imprisonment, or both.
-
Contravention of Conditions: Breaching non-regulatory conditions may lead to fines up to S$10,000 or 12 months’ imprisonment.
-
Debarment: The Controller may debar any person from applying for or being issued work passes for a fixed period, particularly where misconduct or collusion is found.
These enforcement mechanisms reinforce the integrity of Singapore’s work pass system.
Ethical Employment Practices: Fees and Employer Responsibilities
C. Prohibited Employee Charges
Employers must not impose any employment-related charges on foreign workers. It is unlawful to deduct, demand, or receive any payment — directly or indirectly — as a condition of employment or as a guarantee for continued employment. Violations can attract fines up to S$30,000 or 2 years’ imprisonment.
D. Misrepresentation and Quota Abuse
The EFMA also targets fraudulent manpower practices, such as applying for EPs tied to non-existent businesses or unused positions. Such acts are offences, reflecting Singapore’s commitment to maintaining a fair and genuine employment environment.
E. Employer Financial Duties
Employers are responsible for bearing costs related to:
-
EP applications, renewals, and reinstatements (unless specifically exempted); and
-
Repatriation of foreign employees at any time.
Employers found manipulating foreign employee entitlements — for instance, by falsifying CPF contribution records — may face penalties of up to S$20,000.
EP Termination, Suspension, and Revocation
If the Controller suspends or revokes an EP, the employer will be notified and must terminate the employment within seven days of receiving notice. This termination is legally valid and exempt from trade dispute considerations.
Similarly, when an employer intends to cancel an EP, they must submit a cancellation request and, if required, return the pass to the Controller within seven days. These strict timelines ensure the integrity of Singapore’s foreign manpower data and compliance ecosystem.
The Strategic Importance of Compliance with COMPASS
Beyond fulfilling statutory obligations, aligning with COMPASS and EFMA standards reflects an employer’s commitment to responsible workforce management. Employers who consistently demonstrate compliance enjoy faster processing, smoother renewals, and improved credibility with the Ministry of Manpower.
COMPASS also incentivises diversity and local workforce development, encouraging companies to invest in skills upgrading and talent integration — critical factors in Singapore’s global competitiveness.
Conclusion: Partnering for Success in Singapore’s Employment Landscape
Navigating the Employment Pass and COMPASS framework requires both strategic understanding and rigorous compliance. Whether you are an employer hiring top international talent or an executive relocating to Singapore, working with an experienced corporate service provider ensures that every regulatory requirement is met efficiently and correctly.
If you like to submit a question, or would like us to touch on certain topics, you may email us at [email protected]. When in doubt, seek legal advice or consult an experienced licensed Employment Agency with the Ministry of Manpower.
Yours Sincerely,
The editorial team at Singapore Employment Agency
Little Big Employment Agency Pte. Ltd. is a licensed Employment Agency with the Ministry of Manpower with license number 19C9790.