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Illegal rebates may land employers in jail

By: Staff Journalist, Singapore
Published: Apr 22, 2008

Singapore - Employment agencies offering rebates for companies to employ foreign workers will soon face charges for breaching the Employment of Foreign Manpower Act.

Speaking in parliament recently, acting manpower minister Gan Kim Yong rolled out a plan to introduce new legislations that would prevent such practices from happening in Singapore. He warned that employers are not allowed to recover the Foreign Worker Levy from their foreign workers in any possible way, as recently reported in Channel News Asia.

The Ministry of Manpower is currently investigating certain cases and if employment agencies are found guilty their licence will be revoked and their security deposits forfeited. Meanwhile, convicted employers will face S$5,000 fine or six months jail, or both.

The government has set up various measures to raise the awareness of such illegal practices among foreign workers. This includes working in collaboration with partner Singapore National Employers' Federation and issuing out guidebooks and conduct briefings when employers attend mandatory safety courses.

However, foreign workers who were unaware of the illegal rebate scheme will be issued with Special Passes and would be are allowed to work under the Temporary Jobs Scheme. They may be receiving regular work passes once the investigations are completed.

Ninety percent of the investigations are expected to be completed within three months once the investigation process has been sped up.

Companies featured:

  • Ministry of Manpower

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