Cancelling a work permit in Singapore can be a hassle, with many steps and rules to follow. Knowing when and how to cancel a work permit is key to being compliant and avoiding fines. Whether you’re an employer or employee looking to end a work arrangement, you need to know the procedures.
Work permit cancellation involves informing MOM, completing requirements and handling any legal or financial obligations. For employers, this means proper documentation and managing the transition for the foreign worker. Employees will also need to know their rights and what to do after cancellation.
Don’t get it wrong and face fines or legal issues. Be informed and cancel your work permit smoothly.
Key Takeaways
Cancelling a work permit involves procedures
Employers must document and transition
Be compliant to avoid penalties
Work Permit Cancellation Explained
Cancel a work permit involves procedures. Steps include understanding the process, meeting requirements and MOM.
How to Cancel?
Work permit cancellation can be done manually or online. Employers must submit an application to MOM. This can be done 1 to 7 working days before the last day of work or 1 working day after the permit expires. If the worker is in Singapore, you must request a Special Pass so that they have a valid stay during this period.
Both employers and employees must agree to end employment to cancel the work permit. Communication between both is key to avoid legal issues.
Requirements for Cancellation
To cancel the work permit, the following requirements must be met. Within 1 week from the last day of notice, the employer must complete the process. If the work permit holder becomes a Singapore PR, no need to cancel the permit.
Settle all outstanding salaries and dues before cancelling. If the worker has left Singapore, cancel the work permit within 1 week from their departure date.
MOM’s Role
The Ministry of Manpower (MOM) is responsible for the work permit cancellation process. MOM provides guidelines and ensures employers follow the procedures. Employers submit their applications and get updates through MOM’s online portal.
MOM also handles special pass requests to ensure the worker’s stay in Singapore during the transition period is legal. MOM plays a key role in enforcing immigration regulations and protecting workers’ rights during cancellation.
Employers and employees must know MOM’s requirements to avoid issues. Being informed helps to cancel smoothly and comply with MOM’s rules.
Obligations and Compliance
Canceling a work permit involves responsibilities of both employer and employee and penalties for non-compliance. Be informed to cancel smoothly.
Employer’s Responsibilities
As an employer, you must cancel the work permit within 1 week from the worker’s last day of work. This includes when employment ends due to resignation, termination or retrenchment. Bear the cost of repatriation, including air ticket with check-in luggage allowance for the employee to return.
Also settle all outstanding employment issues, such as unpaid salaries or disputes. You must also request a Special Pass for the worker if they need to stay in Singapore temporarily.
Also return the work pass card to MOM by the employee or yourself.
Employee’s Duties Upon Cancellation
Inform your employer of your intention to cancel the work permit. This allows the employer to start the cancellation process. Hand over your work pass card to your employer or MOM as instructed. Comply with your employer’s requirements for cancellation.
Also check with Inland Revenue Authority of Singapore (IRAS) for any outstanding taxes. May require a release letter from IRAS.
Finally, employees must prepare for departure by arranging all travel plans, including their return flight to their home country.
Legal Penalties for Non-compliance
Non-compliance with work permit cancellation process can result to severe legal penalties. Employers who fail to cancel the work permit within the deadline will be fined and other penalties. These penalties are to ensure compliance.
Employees who do not comply will also face consequences such as being blacklisted from future employment in Singapore. Both parties must comply to avoid legal issues.
Compliance is to keep legal standing and avoid fines and legal disputes.
Financial Considerations
When canceling a work permit in Singapore, there are financial responsibilities to take care of. This includes settling all outstanding payments, tax clearance and levy and repatriation costs.
Settling Payments
You must settle all payments to the employee. This includes their final salary, accumulated leave and overtime pay. Review the employment contract and Singapore labor laws to comply.
Non-compliance will cause legal issues for your company. Ensure all payments are made before termination date. It is recommended to have documentary proof of these payments for future reference.
Tax Clearance
When an employee’s work permit is cancelled, you must seek tax clearance from Inland Revenue Authority of Singapore (IRAS). This is to ensure the employee has paid all taxes due before leaving the country.
You must submit Form IR21 to IRAS at least 1 month before the employee leaves or work permit cancellation date. Any outstanding tax liabilities must be settled immediately to avoid penalties.
Key Points
Submit Form IR21 at least 1 month prior.
Pay all taxes.
Get tax clearance to avoid penalties.
Levy and Repatriation Costs
Levy and repatriation costs are other financial considerations. Employer must pay the monthly levy to MOM until cancellation date.
You must also arrange and bear the cost of the employee’s repatriation. This includes airfare and any travel expenses to their home country. Failure to manage these costs will result to fines and affect your company’s ability to hire foreign workers in the future.
To Do
Ensure levy is paid.
Bear all repatriation costs, including airfare.
Keep record of these payments for compliance.
Post Cancellation Procedures
After cancelling a work permit, there are procedures to follow to comply with regulations. This includes handling the expired work permit and transfer to new employer smoothly.
Work Permit Issuance and Expiry
Once a work permit is cancelled, the worker cannot work in Singapore. You must cut the work permit card in half and dispose it to prevent misuse. Levy will continue to be charged until one day before cancellation.
Do this as soon as possible. If your work permit was cancelled by mistake, you can reinstate it if it has not expired and the worker is still in Singapore. Follow all procedures to avoid issues with MOM.
Transition to a New Employer
If the worker wants to find a new job, they must have a valid work pass or apply for one like S Pass or another work permit. The new employer will handle this application.
During this period, the worker cannot work until new permit is approved. This includes work permits for foreign domestic workers and other sectors.
If you want to stay long term, becoming a Singapore Permanent Resident might be an option but it’s a separate and more complex process with its own set of criteria and applications.
Summary
Cancelling a work permit involves many steps to comply with Singapore regulations.
Firstly, you must cancel the work permit within 1 week after last day of notice or employment. This is very important to avoid legal issues.
Notify your employer of your intention to cancel the work permit. This will help to smooth the process.
Make sure to request for Special Pass if the permit holder is still in Singapore after the permit has expired. This will allow them to stay legally while arrangements are being made.
Key Points to Note:
Cancel within 1 week of last working day.
Inform your employer beforehand.
Request for Special Pass if needed.
Follow these steps and you will be able to manage the cancellation of work permit well. Keep track of the deadlines and requirements to avoid issues. Otherwise, you should consider hiring an employment agent like P Connect Services to perform this transaction on your behalf.
FAQs
What are the reasons for canceling a work permit in Singapore?
Work permits in Singapore may be canceled due to reasons such as the completion of the employment contract, resignation or termination of the foreign worker, or if the work permit expires.
How do I initiate the cancellation process for a work permit?
Employers can initiate the cancellation process through the Ministry of Manpower (MOM) website or via their authorized employment agency. They need to submit relevant documents including the worker's valid passport details, work permit card, and a completed cancellation note. It's crucial to notify MOM at least 7 days before the work permit expiry date to ensure smooth processing. A 30 day short term visit pass will be issued which allows you to stay in Singapore temporarily.
What documents are required to cancel a work permit?
Typically, documents such as the worker's valid passport details, work permit card, and a completed cancellation note are required. Employers may also need to provide proof of the worker's departure from Singapore, such as connecting transport costs or proof of leaving Singapore.
Is there a specific notice period required before canceling a work permit?
Yes, employers are generally required to notify MOM at least 7 days before the work permit expiry date. This allows MOM to verify and process the cancellation accordingly.
Are there any penalties or fines for canceling a work permit prematurely?
Employers may face penalties if they do not comply with the cancellation procedures or if they fail to cancel a work permit when required (e.g., after termination). This could include fines or restrictions on hiring foreign workers in the future. It's important to ensure tax clearance formalities are completed before the worker leaves Singapore to avoid complications.
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