Letter of consent vs Letter of appointment? What's the difference? If you're starting a business or looking to hire employees in Singapore, you've probably come across these two terms: Letter of Consent (LOC) and Letter of Appointment. Understanding the difference between them is important, so let's break it down in simple terms.
In Singapore's employment world, these two documents play very different roles, though people often get them confused. Let's start by understanding what each one actually is.
A Letter of Consent (LOC) is basically a permission slip from Singapore's Ministry of Manpower (MOM). It allows certain pass holders to work legally in Singapore under specific conditions.
Who needs one? Typically, it's for Dependant Pass (DP) holders and Long-Term Visit Pass (LTVP) holders. Think of it as the government saying, "Yes, this person has our permission to work here."
Applying for an LOC is pretty straightforward. The employer needs to submit an application to MOM on behalf of the pass holder. You can apply online through the MyMOM portal, where you'll find loads of important information about eligibility and what documents you'll need.
Good news - processing usually only takes about 1-3 weeks. Unlike other work permits, the LOC is connected to the person's existing pass rather than being a standalone document.
Now, a Letter of Appointment is something completely different. It's a document that an employer gives to a new employee after they've accepted a job offer. Think of it as the official paperwork that spells out exactly what you're getting into when you take a job.
This letter typically includes:
What your job title and responsibilities are
When you'll start working
How much you'll get paid and what benefits you'll receive
Your working hours and where you'll be working
Whether there's a probation period
Your leave entitlements
How much notice you need to give if you resign
In Singapore, employers have to provide written key employment terms (KETs) as required by the Employment Act. The Letter of Appointment usually takes care of this requirement.
Unlike the LOC, this document doesn't need government approval - it's just between you and your employer.
Let's compare these two documents side by side to make the differences crystal clear.
A Letter of Consent is officially issued by MOM. It lets dependent pass holders work legally in Singapore without needing a separate work pass like those needed for employment pass holders.
There are strict rules around LOCs, and employers have to stay compliant throughout the employment period. Sometimes, additional documents might be needed depending on your specific situation.
On the flip side, a Letter of Appointment is part of your employment contract. It lays out all your employment terms as required by law.
If employers don't get their documentation right, they could face penalties, including fees and restrictions on hiring foreign workers. This is super important when it comes to immigration regulations, which Singapore takes very seriously.
The LOC is mainly for eligible dependents of work pass holders who want to work in Singapore. It's commonly used for:
Spouses or unmarried children under 21 years old of Employment Pass or S Pass holders
Dependent's Pass holders looking for work
Family members of Singapore Citizens or Permanent Residents
A Letter of Appointment, however, establishes the relationship between employer and employee. You need one for:
Documenting your employment terms as required by law
Clarifying what your job actually involves
Setting out your pay, benefits, and working hours
Establishing probation periods and how either party can end the employment
An appointed employment agent can handle the LOC application process on behalf of the employer, while Letters of Appointment come directly from employers.
Who Issues It:
LOC: Comes from the Ministry of Manpower
Appointment Letter: Comes from your employer
Main Purpose:
LOC: Gives dependent pass holders permission to work
Appointment Letter: Sets out employment terms and conditions
Flexibility:
Pre-approved Letter of Consent (PLOC) gives you more flexibility than standard LOCs
Unlike Employment Passes, LOCs are tied to the primary employment status of the main pass holder
You can change an Appointment Letter if both parties agree, but LOC changes need MOM approval
How Long They Last:
LOCs are valid based on how long the dependent pass is valid
Appointment Letters clearly specify the start date and might be for a fixed term or ongoing employment
Cost:
Getting an LOC is usually cheaper than applying for an Employment Pass
Payment for LOC applications happens through the MyMOM portal, with different fees depending on the type of pass
If you're thinking about becoming a company director in Singapore or appointing someone as one, there are some specific requirements to be aware of.
Any person who wants to be a director needs to provide written consent. Also, EP holders who want to take on directorship roles outside their main job need to get a separate LOC specifically for these directorship duties.
When joining a company board, foreign directors need to make sure their visa allows this kind of work, and the related company often needs to provide extra documentation to MOM.
Certain selected professions in Singapore need additional qualifications beyond the standard employment paperwork. These professions might have specific regulatory requirements that affect how Letters of Appointment are structured.
When assessing a candidate for specialized roles, employers should make sure all professional qualifications are properly documented in the Letter of Appointment, with purpose-related skills and certifications clearly listed.
There was a big policy change for Dependant's Pass holders in May 2021. Previously, they could work with just an LOC. Now, employers need to apply for a S Pass or an Employment Pass if they want to hire a Dependant's Pass holder.
Long Term Visit Pass (LTVP) holders who are spouses or unmarried children of Singaporeans or PRs can still apply for an LOC to work. The employer needs to submit the application through the online portal.
Key updates to know:
LOC processing time: 1-3 weeks
Dependant's Pass holders: Now need formal work passes
LTVP holders: Can still get an LOC
For Letters of Appointment, the Employment Act amendments of 2023 now require more detailed documentation of employment terms. You need to include more specific information about leave benefits, probation terms, and termination procedures.
The Fair Consideration Framework has also been strengthened, affecting how companies prepare their hiring documentation before offering positions to foreign workers in Singapore.
Understanding the differences between Letters of Consent and Letters of Appointment is really important for navigating Singapore's employment landscape successfully.
While both documents relate to employment, they serve completely different purposes and have different legal implications.
Whether you're an employer or an employee, make sure you have the right documentation in place to comply with Singapore's regulations and establish clear employment relationships.
For additional information on either document, it's a good idea to talk to a legal professional who specializes in Singapore employment law to make sure you're fully compliant with current regulations.
Need help with your LOC application, feel free to contact us for a quote today.
