Companies Investigated for Splitting Local Qualifying Salary Payments for More Foreign Worker Quotas

Debated in Parliament on 2 Aug 2023.

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Yeo Wan Ling questioned the Minister for Manpower about the number of companies investigated in the past five years for splitting Local Qualifying Salary payments to increase foreign worker quotas, and Tan See Leng responded that such actions are prohibited under the Employment of Foreign Manpower Act and subject to investigation.
Between 2018 and 2022, about 640 employers were investigated for inflating foreign worker entitlement, with only a small proportion involving splitting local salaries across business entities, and MOM does not track whether these entities are related as it does not affect enforcement outcomes.
Of the 640 investigated employers, enforcement actions were taken against about 15%, while the rest faced no action due to reasons such as no foreign hires using additional quota, administrative lapses, or insufficient evidence.

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Yeo Wan Ling

Ms Yeo Wan Ling asked the Minister for Manpower how many companies in the past five years have been investigated for splitting Local Qualifying Salary payments over two related companies to enjoy more foreign worker quotas.

Tan See Leng

Companies are not allowed to split the salaries of its local employees across different business entities for the purpose of obtaining foreign worker quota for each business entity. Those who do so will be investigated for breaching the Employment of Foreign Manpower Act as a form of inflating their foreign worker entitlement.

Between 2018 and 2022, the Ministry of Manpower (MOM) investigated about 640 employers for inflating their foreign worker entitlement. Of these, only a small proportion involved employers splitting the salaries of their locals across multiple business entities. MOM does not specifically track whether these business entities are related as it is immaterial to the enforcement outcomes.

Of the 640 employers investigated, enforcement actions were eventually taken against about 15% of them. No enforcement action was taken against the remaining employers as investigations showed that they did not hire any foreign workers using the additional quota gained, there were administrative lapses by the companies or due to insufficient evidence.

Summary written by AI (learn more)

Yeo Wan Ling questioned the Minister for Manpower about the number of companies investigated in the past five years for splitting Local Qualifying Salary payments to increase foreign worker quotas, and Tan See Leng responded that such actions are prohibited under the Employment of Foreign Manpower Act and subject to investigation.
Between 2018 and 2022, about 640 employers were investigated for inflating foreign worker entitlement, with only a small proportion involving splitting local salaries across business entities, and MOM does not track whether these entities are related as it does not affect enforcement outcomes.
Of the 640 investigated employers, enforcement actions were taken against about 15%, while the rest faced no action due to reasons such as no foreign hires using additional quota, administrative lapses, or insufficient evidence.

Questions identified by AI (learn more)

Companies Investigated for Splitting Local Qualifying Salary Payments for More Foreign Worker Quotas | PAPERCUTS

Companies Investigated for Splitting Local Qualifying Salary Payments for More Foreign Worker Quotas

Debated in Parliament on 2 Aug 2023.

Summary written by AI (learn more)

Yeo Wan Ling questioned the Minister for Manpower about the number of companies investigated in the past five years for splitting Local Qualifying Salary payments to increase foreign worker quotas, and Tan See Leng responded that such actions are prohibited under the Employment of Foreign Manpower Act and subject to investigation.
Between 2018 and 2022, about 640 employers were investigated for inflating foreign worker entitlement, with only a small proportion involving splitting local salaries across business entities, and MOM does not track whether these entities are related as it does not affect enforcement outcomes.
Of the 640 investigated employers, enforcement actions were taken against about 15%, while the rest faced no action due to reasons such as no foreign hires using additional quota, administrative lapses, or insufficient evidence.

Questions identified by AI (learn more)

Full Transcript

Yeo Wan Ling

Tan See Leng

Summary written by AI (learn more)

Yeo Wan Ling questioned the Minister for Manpower about the number of companies investigated in the past five years for splitting Local Qualifying Salary payments to increase foreign worker quotas, and Tan See Leng responded that such actions are prohibited under the Employment of Foreign Manpower Act and subject to investigation.
Between 2018 and 2022, about 640 employers were investigated for inflating foreign worker entitlement, with only a small proportion involving splitting local salaries across business entities, and MOM does not track whether these entities are related as it does not affect enforcement outcomes.
Of the 640 investigated employers, enforcement actions were taken against about 15%, while the rest faced no action due to reasons such as no foreign hires using additional quota, administrative lapses, or insufficient evidence.

Questions identified by AI (learn more)

Companies Investigated for Splitting Local Qualifying Salary Payments for More Foreign Worker Quotas

Summary

Questions Identified

Full Transcript

Yeo Wan Ling

Tan See Leng

Summary

Questions Identified

Companies Investigated for Splitting Local Qualifying Salary Payments for More Foreign Worker Quotas

Summary

Questions Identified

Full Transcript

Yeo Wan Ling

Tan See Leng

Summary

Questions Identified