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MOM draws clear line between intra-corporate transferees, EP holders
The changes could reduce the number of Dependant's Pass holders entering Singapore.PHOTO: ST FILE
Yuen Sin
SINGAPORE - The Ministry of Manpower (MOM) has drawn a clear line between foreign employees brought in from overseas offices of multinational corporations (MNCs) and other Employment Pass (EP) holders.
Since November last year, such employees, who are known as intra-corporate transferees, are being told that they cannot bring their family members to Singapore via dependant's passes or long-term visit passes.
EP holders are allowed to do this if they meet the qualifying criteria.
The rule does not, however, apply to intra-corporate transferees if they come from countries that have a free trade agreement (FTA) with Singapore that stipulates that they can bring their families with them.
Intra-corporate transferees are also now being told that they will not be allowed to remain in Singapore for a limited period to find a new job if their work passes have been cancelled - unlike EP holders who can do so if they meet specific criteria.
Such intra-corporate transferees are a common FTA feature globally that allows for the movement of professionals for short periods to set up offices or for ad hoc projects, for example.
The MOM told The Straits Times that EP applicants who wish to enter Singapore as intra-corporate transferees are subject to conditions consistent with Singapore's existing international obligations. These have not changed.
"Going forward, such intra-corporate transferee applicants could consider applying as regular EPs instead... Applicants should keep in mind the different conditions that apply before they submit their work pass applications," the MOM said.
The spokesman added that the changes are for "neater administration of work passes".
Intra-corporate transferees make up less than 5 per cent of EP holders here.
According to the MOM's website, there were 189,700 EP holders as at June 2020, down from 193,700 in December 2019.
The changes, observers said, could reduce the number of dependant's pass holders entering Singapore, and send a stronger signal that MNCs have to give consideration to hiring locals before transferring a foreign employee here.
Mr Ng Zhao Yang, a local principal with the employment practice of Baker McKenzie Wong & Leow, said the changes make clear that intra-corporate transferees "would not have the same privileges as other EP holders".
This would likely discourage employers from applying for EPs via the intra-corporate transfer route, which is exempted from the Fair Consideration Framework (FCF).
According to employment agents, such intra-corporate transfers are generally processed faster than EPs applied for under the regular route, where jobs have to be posted on the MyCareersFuture.sg portal for at least 28 days as part of the FCF before the company can apply for an EP.
The issue of intra-corporate transfers came under the spotlight last year, with critics arguing that FTAs like the India-Singapore Comprehensive Economic Cooperation Agreement (Ceca) have enabled a sizeable number of Indian IT workers to move here as intra-corporate transferees. But the Ministry of Trade and Industry (MTI) clarified last year that Ceca does not give Indian nationals automatic access to citizenship, permanent residence or employment in Singapore.
The MTI has also said it is misleading to attribute the number of Indian professionals, managers and executives, especially intra-corporate transferees, solely or mainly to Ceca. Intra-corporate transferees here "come from a wide range of different source countries, with Indian nationals constituting only a small segment", it said then.
Intra-corporate transferees must still meet the EP criteria, as well as have industry experience, and must have worked in the parent company for a minimum duration.
Intra-corporate transferees' family members can still apply for dependant's passes or long-term visit passes if they are covered by an applicable FTA and meet prevailing criteria. This refers to workers from India and Australia, under Ceca and the Singapore-Australia Free Trade Agreement.
Dr David Leong, managing director of human resource firm PeopleWorldwide Consulting, said the recent changes are significant, as many intra-corporate transferees come from other countries that are affected by the changes.
"They send a strong signal that such intra-corporate transferees are a transient presence in Singapore - they come here to do a job, and then they go back," he said, adding that this move could slow the inflow of dependant's pass holders.
Yuen Sin
- PUBLISHED
JAN 10, 2021, 8:39 PM SGT
SINGAPORE - The Ministry of Manpower (MOM) has drawn a clear line between foreign employees brought in from overseas offices of multinational corporations (MNCs) and other Employment Pass (EP) holders.
Since November last year, such employees, who are known as intra-corporate transferees, are being told that they cannot bring their family members to Singapore via dependant's passes or long-term visit passes.
EP holders are allowed to do this if they meet the qualifying criteria.
The rule does not, however, apply to intra-corporate transferees if they come from countries that have a free trade agreement (FTA) with Singapore that stipulates that they can bring their families with them.
Intra-corporate transferees are also now being told that they will not be allowed to remain in Singapore for a limited period to find a new job if their work passes have been cancelled - unlike EP holders who can do so if they meet specific criteria.
Such intra-corporate transferees are a common FTA feature globally that allows for the movement of professionals for short periods to set up offices or for ad hoc projects, for example.
The MOM told The Straits Times that EP applicants who wish to enter Singapore as intra-corporate transferees are subject to conditions consistent with Singapore's existing international obligations. These have not changed.
"Going forward, such intra-corporate transferee applicants could consider applying as regular EPs instead... Applicants should keep in mind the different conditions that apply before they submit their work pass applications," the MOM said.
The spokesman added that the changes are for "neater administration of work passes".
Intra-corporate transferees make up less than 5 per cent of EP holders here.
According to the MOM's website, there were 189,700 EP holders as at June 2020, down from 193,700 in December 2019.
The changes, observers said, could reduce the number of dependant's pass holders entering Singapore, and send a stronger signal that MNCs have to give consideration to hiring locals before transferring a foreign employee here.
Mr Ng Zhao Yang, a local principal with the employment practice of Baker McKenzie Wong & Leow, said the changes make clear that intra-corporate transferees "would not have the same privileges as other EP holders".
This would likely discourage employers from applying for EPs via the intra-corporate transfer route, which is exempted from the Fair Consideration Framework (FCF).
According to employment agents, such intra-corporate transfers are generally processed faster than EPs applied for under the regular route, where jobs have to be posted on the MyCareersFuture.sg portal for at least 28 days as part of the FCF before the company can apply for an EP.
The issue of intra-corporate transfers came under the spotlight last year, with critics arguing that FTAs like the India-Singapore Comprehensive Economic Cooperation Agreement (Ceca) have enabled a sizeable number of Indian IT workers to move here as intra-corporate transferees. But the Ministry of Trade and Industry (MTI) clarified last year that Ceca does not give Indian nationals automatic access to citizenship, permanent residence or employment in Singapore.
The MTI has also said it is misleading to attribute the number of Indian professionals, managers and executives, especially intra-corporate transferees, solely or mainly to Ceca. Intra-corporate transferees here "come from a wide range of different source countries, with Indian nationals constituting only a small segment", it said then.
Intra-corporate transferees must still meet the EP criteria, as well as have industry experience, and must have worked in the parent company for a minimum duration.
Intra-corporate transferees' family members can still apply for dependant's passes or long-term visit passes if they are covered by an applicable FTA and meet prevailing criteria. This refers to workers from India and Australia, under Ceca and the Singapore-Australia Free Trade Agreement.
Dr David Leong, managing director of human resource firm PeopleWorldwide Consulting, said the recent changes are significant, as many intra-corporate transferees come from other countries that are affected by the changes.
"They send a strong signal that such intra-corporate transferees are a transient presence in Singapore - they come here to do a job, and then they go back," he said, adding that this move could slow the inflow of dependant's pass holders.
