Thinking of cancelling your Employment Pass (EP) in Singapore? Knowing the right steps is key. Whether you’re leaving Singapore for good or for other reasons, understanding how to navigate the cancellation process will save you time and stress.
Employers or employment agents usually handle the cancellation process. Cancellation is immediate unless you request in advance. Remember if the pass holder has left Singapore permanently, you must cancel the EP within 1 week from the departure date. This is crucial to comply with legal requirements and avoid any problems.
Important Points To Note:
Cancellation is immediate unless requested in advance.
Complete all legal and financial formalities before you leave.
Cancel EP within 1 week if the pass holder leaves Singapore permanently.
Understanding Employment Pass Cancellation
EP cancellation has its own eligibility criteria, process and roles for employer and pass holder. This section explains it all.
Eligibility for Cancellation
An Employment Pass must be cancelled under certain circumstances. If the EP holder is no longer employed by the employer, the pass must be cancelled. This applies if the pass holder’s employment has ended or has left Singapore permanently.
Also, EP cancellation is required if the employee has become a Singapore PR, as MOM will cancel the pass automatically. Start cancellation within 1 week from the employee’s last day of work or departure from Singapore.
Cancellation Process
The cancellation process for an Employment Pass has several steps. The employer must submit the cancellation request through MOM’s online system. This can be done up to 14 days before the cancellation date.
For example if you want to cancel on 15th Feb, you can submit the request from 1st Feb. After cancellation is successful, the pass holder has 30 days to leave Singapore or must apply for Short Term Visit Pass. If the pass holder has already left Singapore, the employer must cancel within 1 week from their departure.
Roles of Employer and Pass Holder
Both employer and pass holder have roles to play in the cancellation process. Employer is responsible to initiate and complete the cancellation through MOM’s portal. This includes providing necessary details and ensure the pass is cancelled within the timeframe.
Pass holder must cooperate by providing required information and adhere to the timeline to exit Singapore or apply for S Pass or Short Term Visit Pass. Good communication between employer and pass holder is key to a smooth cancellation process.
Legal and Financial Considerations
When cancelling an Employment Pass, you need to consider tax clearance procedures, fulfill your obligations with Inland Revenue Authority of Singapore (IRAS) and ensure final salary payments are made correctly.
Tax Clearance
Tax clearance is an important step when an Employment Pass is cancelled. Employer must notify IRAS to ensure all taxes are settled before the employee leaves Singapore. This is called Form IR21. Submit this form at least 1 month before cancellation to avoid any issues.
Employer must withhold all outstanding payments such as salary, bonuses and benefits until IRAS approves. Failure to comply will result in penalties for the employer.
IRAS Requirements
Under IRAS regulations, both employer and employee have their own roles. Employer must report all income earned by the employee including benefits and allowances. This helps IRAS to calculate the exact tax amount owed.
Employee must ensure their tax is up-to-date. If you have outstanding taxes, you need to settle before you leave Singapore. This includes taxes on bonuses or stock options which must be declared clearly.
Salary Payment
Your employer must settle all final salary payments before you leave. This includes regular salary, any outstanding leave pay and bonuses. Coordinate with your employer to ensure all is settled.
Banks may require notice if you have automatic payments or loans. Credit card providers should also be informed to avoid any issues. Make sure all accounts are cleared to leave Singapore hassle free.
Remember these when cancelling your Singapore Employment Pass.
Impact on Residency Status
Cancelling an Employment Pass can affect your residency status in Singapore. This applies to the pass holder and their family members who are in Singapore on dependent passes.
PR Status Implications
If you are a Singapore PR, cancelling your Employment Pass can have immediate impact. You are not required to cancel the pass if you are a PR but losing your job can affect your PR status. Employment is a proof of financial stability which is important to maintain PR status.
Without an Employment Pass, you may be in a weaker position if you need to apply for PR or other passes. It may also affect whether you are seen as a long term contributor to Singapore’s economy.
Effects on Long Term Visit Pass
When an Employment Pass is canceled, related passes like the Long Term Visit Pass are also affected. If your family members hold these passes, they will need to leave Singapore unless they obtain another valid pass.
Make sure to plan for this in advance. It's essential to understand that the Long Term Visit Pass is tied directly to the Employment Pass holder's status. Once the primary pass is canceled, all dependent passes lose their validity.
Implications for Singapore Citizen and Foreigners
For Singaporean, cancelling your Employment Pass does not affect your citizenship. But it may affect your ability to sponsor passes for your family members such as Dependent’s Pass.
For foreigners, cancelling an Employment Pass is more serious. If you don’t get another job or pass, you may have to leave Singapore. Your absence can affect your PR or citizenship application if that is your goal in future.
Long absence from Singapore will also affect your eligibility for certain benefits and will make it harder for you to re-enter Singapore on a new pass. Follow Ministry of Manpower guidelines and keep in touch with your employer.
Post Cancellation Procedures
After cancelling your Employment Pass from your existing employer, there are several things to do regarding the return of the pass, exit formalities and handling of documents to ensure a smooth transition.
Pass Return Requirements
After your Employment Pass is cancelled, you must return it to the Ministry of Manpower. You can do this by appointment at the Employment Pass Services Centre or by mail.
If the pass holder has left Singapore before cancellation, the employer will usually handle this. Make sure to include all parts of the pass, including the card and any related documents. Return promptly to avoid penalties or complications with future visa applications.
Exit Formalities
Before you or the pass holder leaves Singapore, you must complete all exit formalities. This includes repatriation arrangements like booking a flight and paying for all connecting transport costs. Ensure the travel date is within the validity of the Short Term Visit Pass (STVP) issued post-cancellation.
Inform your landlord of your departure. End your lease and settle any outstanding payments. Notify the relevant authorities of termination of rental.
Document Handling
After cancelling your Employment Pass, handle your documents properly. Keep a copy of the cancellation confirmation email and the STVP. These documents will be useful if you need to prove your status later.
Return all work related materials to your employer, including company IDs or access cards. If the pass holder is leaving Singapore permanently, arrange for the shipping of personal belongings.
Cancel local subscriptions or memberships to avoid future charges. Be thorough with these details to have a clean exit and avoid legal or financial problems later.
Transitioning Issues
When cancelling an Employment Pass, you will face several issues related to starting a new job, managing insurance and closing accounts and services. Each one requires attention to detail to ensure a smooth transition.
Joining a New Employer
Joining a new employer requires planning. Give your current employer reasonable notice and settle any outstanding employment issues before you leave. Your employment agent can help you with the procedures.
Update your contact details with the new employer and submit the necessary documents. If you are a foreign employee, get your new work pass approved as soon as possible.
Insurance Considerations
Review your insurance policies as they may need to be updated when you cancel your Employment Pass. Contact your insurance companies to update or terminate policies that are no longer required.
Check your health insurance and other benefits are sufficient for your new employment. If you are transitioning between jobs, check if there’s coverage during this period.
Account and Service Closures
Close all accounts and services related to your Employment Pass. Notify banks, utility providers and other service providers of your change in employment status.
Cancel or update services that are no longer required or will be transferred to your new employer. Close unnecessary accounts or services promptly to avoid extra charges.
Conclusion
Cancelling an Employment Pass is a process that must be done promptly and correctly. Employers must cancel the pass either immediately or within a specified timeframe if the employee has left the country or is unemployed for more than 6 months.
If the employee is leaving Singapore permanently, you must cancel the pass within a week from their departure. If the employee is changing employers or becoming a Singapore Permanent Resident, cancellation is not required, only notification to the authorities.
How to Cancel an Employment Pass:
Submit Cancellation: This is done online by the employer.
Confirmation: You will receive a notification that the pass is cancelled.
Short-Term Visit Pass: Sometimes the cancelled employee will be issued a short-term visit pass for a short stay.
Also cancel related passes like Dependant’s Pass and Long-Term Visit Pass which will be automatically cancelled once the main work pass is terminated.
Being informed and prepared will help you navigate the process of employment pass cancellation smoothly and avoid any problems.
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