Singapore Introduces Labour Market Testing Process Before Hiring Foreign Employees

Online, February 12, 2014 (Newswire.com) - As a part of its Fair Consideration Framework, Singapore's Ministry of Manpower (MoM) will impose labour market testing requirements on employers. The new regulation will take effect starting 1 August 2014. Under this practice, it will be mandatory for local companies to prove that reasonable attempt has been made to first place a Singaporean in a job before considering a foreign employee. The main purpose to introduce labour market testing is to provide better job opportunities to locals, fulfill their career aspirations, equal and fair hiring treatment to Singaporeans and economic growth of the country, says Nair & Co. International Human Resources team.

Significant aspects of the new Labour Market Testing requirements are as follows:

* It is mandatory for employers to post job advertisements to a newly createdNational Job Bank - a one-stop shop for all available jobs in the country.

* Job advertisements must be posted for at least the prescribed minimum number of days before applying for an Employment Pass (EP) for a foreign worker.

* Small firms with less than 25 employees and jobs paying a fixed monthly salary of 12,000SGDor more will be exempted from placing job advertisements.

* Intra-company transferees will be exempted from placing job advertisements.

* To qualify as exempt, it is mandatory for the intracompany transferee (ICT) to be an executive, professional, manager or specialist. Certain criteria has to be met for these categories such as the manager should be carrying out one of the following activities:

1. Providing guidance to the organization or a department or subdivision.
2. Supervising other managerial employees.
3. Making personnel decisions.
4. Taking care of discretionary authority over day-to-day operations.

* In all the above categories, the ICT should have worked for an overseas affiliate of a Singapore company for a time period of not less than one year.

* The job advertising requirement is applicable only to new EP applications.

* Applications received for renewal or other types of work passes such as the S-Pass or Training Employment Pass is not subject to the job advertisement requirements.

In line with rising salaries, from 1 January 2014, MoM has increased the qualifying monthly salary requirement for employers to hire foreign professionals on EP (Q1) criteria to 3,300 SGD (previously it was 3,000).

Companies operating in Singapore and those who intend to hire foreign nationals should be able to demonstrate that they have made local recruitment efforts as per the above listed requirements. Such companies are advised to maintain sufficient documentation concerning labor market testing to avoid delays and possible actions from local authorities.

For more information about doing business overseas or to know more about our International HR Services team please contact us.
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