SINGAPORE: The MOM Revises Framework to Increase Local Hires

July 31, 2015

The Ministry of Manpower (MOM) is at work again with a further revision to the Fair Consideration Framework (FCF) for Singaporean Professionals, Managers and Executives (PMEs).

Some Key Changes:

Transparent Salary

In August last year, MOM introduced a resident labour market test requirement for Employment Pass (EP) applications. As a result, EP application can only be filed if the position has been advertised in the MOM’s Jobs Bank for 14 days. From 1st October 2015, MOM stipulated a further requirement for these job postings to specifically include the salary range related to the job position. Failure to do so will result in the EP application being rejected.

Having Singaporean Core Team is essential

Any EP application submitted with a small percentage of Singapore PME will also experience enhanced scrutiny as MOM will request for details of the recruitment process, including shortlisting of Singaporean nationals and number of Singaporean PMEs the business currently have within various levels of the organisation.

 Genuine Qualification

MOM has also announced an enhanced examination on qualification and experience submitted with any EP applications. Any qualifications deem doubtful by the MOM will be rejected and any applications presenting a forged qualification will have the applicant banned from ever working in Singapore.

What should employers do?

It is likely that for companies who do not have a good percentage of Singaporean employees, that it will become more difficult to obtain Employment and S Passes.

It is advisable that you have a hiring policy which ensures a higher percentage of local hires in Singapore, at all levels of seniority, to make it easier to hire talent from overseas when a skills gap cannot be filled in-country.

If you have any questions or queries as to how this will affect your business please feel free to contact us.