False declarations in Employment Pass (EP) applications can lead to severe legal and administrative consequences for both the applicant and the employer. There has been news of errant employers who were caught doing this in recent years.
7 Reasons Why Employers Give False Declarations in EP Applications
Employers might give false declarations in EP applications for various reasons, though doing so is illegal and risky. Here are some common motivations behind these actions:
1. To Meet Employment Pass Eligibility Requirements
Employers may inflate the declared salary of the foreign worker to meet the minimum qualifying salary for the EP. With the government’s gradual increase in EP candidates’ minimum qualifying salary each year, employers might resort to this.
They also might exaggerate or falsify the employee’s educational qualifications or work experience to make the applicant appear more qualified and eligible for the EP.
2. To Circumvent Local Hiring Quotas or Restrictions
Singapore has a focus on hiring local talent, and certain job roles may require evidence that no suitable local candidate was available. Employers may falsify information to bypass these restrictions and bring in foreign talent more easily.
3. Cost-Saving Reasons
Hiring a foreign worker might sometimes be more cost-effective for the employer than hiring local workers, especially if they offer the foreign worker a lower, unofficial salary while declaring a higher amount to MOM. This way, they avoid paying market rates that would be required for local workers.
4. To Meet Tight Labor Needs
Some industries, such as tech, construction, and manufacturing, face shortages of skilled workers locally. Employers may resort to false declarations in order to quickly hire skilled foreign workers and fill gaps in the workforce.
5. Faster Processing
To expedite the approval process, employers might provide misleading information, such as understating the job role or company size, hoping for less scrutiny from the Ministry of Manpower (MOM).
6. Employee Favoritism
In some cases, employers may give false declarations to favor a particular foreign applicant whom they wish to hire due to personal or national ties, regardless of whether the applicant truly qualifies for the role. This usually happens when the Human Resource (HR) staff and/or management team are foreigners themselves, and prefer people from their home country to work in the company instead of hiring locals who are more qualified.
7. Lack of Awareness or Due Diligence
While rare, some employers may unintentionally provide false declarations due to negligence, inadequate HR processes, or a misunderstanding of MOM’s regulations.
7 Consequences of False Declarations in EP Applications
Even if the motivation seems justifiable, for example, filling a talent gap, the consequences of providing false declarations are severe and can lead to legal penalties, bans, and reputational damage for the company. Employers should ensure that they comply fully with the requirements and provide accurate information during the EP application process.
1. Rejection of the EP Application
If false information is detected during the application process, the Ministry of Manpower (MOM) may reject the EP application outright. Common falsifications include inaccurate educational qualifications, employment history, or salary information.
2. Revocation of Issued Employment Pass
If false declarations are discovered after the EP has been granted, MOM can revoke the pass, forcing the employee to leave Singapore or apply for another visa.
3. Bans on Future Applications
Both the employer and the employee may face a ban from submitting future applications. The length of the ban may vary, but it is often several years, affecting both the individual’s career and the employer’s ability to hire foreign talent.
4. Fines and Legal Penalties
Under the Employment of Foreign Manpower Act (EFMA), providing false information to MOM is a criminal offense. The individual or the employer responsible for the false declarations may face:
- Fines up to SGD 20,000.
- Imprisonment for up to 2 years.
- Both fine and imprisonment in severe cases.
5. Reputational Damage
Employers involved in making false declarations can suffer damage to their reputation, which could impact their ability to attract future employees or even their business operations.
6. Blacklist for Employers
Employers submitting false declarations risk being blacklisted by MOM, restricting their ability to hire foreign employees in the future.
7. Workplace Audits and Investigations
False declarations can trigger workplace audits and further investigations into the company’s hiring practices, which could lead to broader scrutiny and penalties.
Case Studies of False Declarations in EP Applications
- Shipping company Ti2 Logistics was charged by the Ministry of Manpower (MOM) with one count of making a false declaration in its EP application. The company declared in the EP application that it had interviewed two candidates who were Singapore citizens for the position of business development manager and that locals were considered fairly for the job but it turned out to be false. This was the first employer prosecuted under the Fair Consideration Framework (FCF) to tackle workplace discrimination.
- A Chinese businessman and seasoned investor had applied for an EP to work for a local company, MW Dynamics, but that turned out to be false. He had no intention to work for the said company. His intention was to get an EP, which would make him eligible for Singapore PR and eventually Singapore Citizenship. He was sentenced to four weeks’ jail.
- Founder of The Malayan Council, an established halal fusion restaurant in Singapore, falsely declared the salaries of 13 foreign workers who were holding various job roles such as restaurant managers and customer service executives. This declaration was done to meet the salary criteria for S-Pass and Employment Pass applications, which workers actually received less than stated. He also deducted $1,700 from another worker’s salary as a condition of employment and got his workers to lie during the investigation by MOM. In addition, he also employed two foreign workers without valid work passes. With 41 charges, he was sentenced to 29 weeks’ jail and fined $22,000 for falsifying work pass applications and illegal employment.
False Declarations in EP Applications: Is it Worth the Risk?
False declarations in Singapore EP applications are taken very seriously by MOM and can result in significant legal, financial, and professional consequences for both the applicant and the employer. It is essential to ensure all information submitted is accurate and verifiable.
Companies that need help with multiple EP applications for a long-term period may Whatsapp Immigration@SG at 8766 1966 or email to info@iasg.com.sg.
