- Requests to Transfer Employment Pass Holders to Subsidiaries No Longer Permitted
- August 25, 2014
- Law Firm: Fragomen Del Rey Bernsen Loewy LLP - New York Office
The Ministry of Manpower (MOM) no longer allows companies to transfer an existing employment pass holder to a subsidiary in Singapore as part of a secondment or due to career progression. Instead, the subsidiary is required to apply for a new employment pass for the affected employee. The employer is not required to cancel the existing employment pass before submitting the new application. This change took effect on August 1.
All transfer requests filed with the MOM on or before August 1 will be processed as usual.
There is one exception to the new rule. Companies seeking to transfer an employment pass holder due to corporate restructure, takeover by another company or a merger are not required to apply for a new pass.
What This Means for Employers
When a new employment pass application is submitted by a subsidiary as the sponsor, it will now be evaluated based on current employment pass criteria, rather than those that were in place at the time the original pass was granted. Before initiating a transfer, employers are advised to work with their immigration counsel to evaluate whether affected employees remain eligible under the current criteria.