Requirement for Employers to Declare Reasons for Salary Reduction from Amount Stated in In-principle Approval Letter

Debated in Parliament on 2 Mar 2020.

Summary written by AI (learn more)

Louis Ng asked if employers should declare reasons for salary reductions from the In-Principle Approval letter amount when notifying MOM and workers.
Josephine Teo stated that employers must prove they obtained the worker's written agreement and notified MOM, or face reinstatement of the original salary, repayment of any shortfall, and a fine up to $10,000 per worker.
She noted that workers can refuse consent and seek help from MOM and the Migrant Workers’ Centre if terminated for refusal.
Teo explained that requiring reason declaration is redundant and could mislead workers into thinking the reduction is valid without consent.
The current system focuses on ensuring agreement and accountability rather than adding a declaration requirement.

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Full Transcript

Louis Ng Kok Kwang

Mr Louis Ng Kok Kwang asked the Minister for Manpower whether the Ministry will consider requiring employers to declare the reasons for the salary reduction from the amount stated in the In-Principle Approval letter of a foreign worker when they notify the Ministry and the foreign worker of the reduction.

Mrs Josephine Teo

When there is a dispute involving salary reduction from the amount stated in the In-Principle Approval letter, the onus is on the employer to show that he obtained the work permit holder's (WPH) written agreement and notified the Ministry of Manpower (MOM) beforehand. If the employer fails to prove either of the two requirements, the original declared salary holds and the employer will be required to make good any salary shortfall, regardless of reason for the salary reduction. In addition, MOM will also impose a fine of up to $10,000 per worker on the employer.

The requirement for employers to obtain their workers' written agreement ensures that the WPH can refuse to give his consent. WPHs whose contracts are terminated by their employer for refusing to provide consent should seek help from MOM. MOM allows such WPHs to find a new employer and we work with the Migrant Workers’ Centre to facilitate the process.

The suggestion by the Member to make employers declare the reason for the salary reduction when notifying MOM is redundant. Even if the employer did so, he would still need to obtain the written agreement of the WPH. In addition, it could have potentially unintended consequences, such as causing the worker to believe that the mere fact of notifying MOM regularises the salary reduction, even if the worker did not give his consent.

Summary written by AI (learn more)

Louis Ng asked if employers should declare reasons for salary reductions from the In-Principle Approval letter amount when notifying MOM and workers.
Josephine Teo stated that employers must prove they obtained the worker's written agreement and notified MOM, or face reinstatement of the original salary, repayment of any shortfall, and a fine up to $10,000 per worker.
She noted that workers can refuse consent and seek help from MOM and the Migrant Workers’ Centre if terminated for refusal.
Teo explained that requiring reason declaration is redundant and could mislead workers into thinking the reduction is valid without consent.
The current system focuses on ensuring agreement and accountability rather than adding a declaration requirement.

Questions identified by AI (learn more)

Requirement for Employers to Declare Reasons for Salary Reduction from Amount Stated in In-principle Approval Letter | PAPERCUTS

Requirement for Employers to Declare Reasons for Salary Reduction from Amount Stated in In-principle Approval Letter

Debated in Parliament on 2 Mar 2020.

Summary written by AI (learn more)

Louis Ng asked if employers should declare reasons for salary reductions from the In-Principle Approval letter amount when notifying MOM and workers.
Josephine Teo stated that employers must prove they obtained the worker's written agreement and notified MOM, or face reinstatement of the original salary, repayment of any shortfall, and a fine up to $10,000 per worker.
She noted that workers can refuse consent and seek help from MOM and the Migrant Workers’ Centre if terminated for refusal.
Teo explained that requiring reason declaration is redundant and could mislead workers into thinking the reduction is valid without consent.
The current system focuses on ensuring agreement and accountability rather than adding a declaration requirement.

Questions identified by AI (learn more)

Full Transcript

Louis Ng Kok Kwang

Mrs Josephine Teo

Summary written by AI (learn more)

Louis Ng asked if employers should declare reasons for salary reductions from the In-Principle Approval letter amount when notifying MOM and workers.
Josephine Teo stated that employers must prove they obtained the worker's written agreement and notified MOM, or face reinstatement of the original salary, repayment of any shortfall, and a fine up to $10,000 per worker.
She noted that workers can refuse consent and seek help from MOM and the Migrant Workers’ Centre if terminated for refusal.
Teo explained that requiring reason declaration is redundant and could mislead workers into thinking the reduction is valid without consent.
The current system focuses on ensuring agreement and accountability rather than adding a declaration requirement.

Questions identified by AI (learn more)

Requirement for Employers to Declare Reasons for Salary Reduction from Amount Stated in In-principle Approval Letter

Summary

Questions Identified

Full Transcript

Louis Ng Kok Kwang

Mrs Josephine Teo

Summary

Questions Identified

Requirement for Employers to Declare Reasons for Salary Reduction from Amount Stated in In-principle Approval Letter

Summary

Questions Identified

Full Transcript

Louis Ng Kok Kwang

Mrs Josephine Teo

Summary

Questions Identified