Ministry of Manpower reminds employers that work pass fraud is a 'serious offence'
Seven employers and an administrative assistant in Singapore have been charged over work pass fraud, prompting a stark reminder from the Ministry of Manpower (MOM) that the practice is a "serious offence" under the country's laws.
MOM said the eight individuals – five Singaporeans and three Chinese nationals – have been charged with making false declarations in work pass applications under the Employment of Foreign Manpower Act 1990 (EFMA). The Singaporeans comprise three company directors, a sole proprietor and an administrative assistant, while the three Chinese nationals are all company directors.
The individuals were charged for falsely declaring that they had made Central Provident Fund (CPF) contributions to their local employees, despite these workers not actually working for them, in an attempt to inflate their foreign worker quotas.
One of the employers also allegedly obstructed an employment inspector by instructing an individual to sign backdated and falsified employment documents, according to MOM.
Consequences of work pass fraud
MOM reminded employers and employment agencies that work pass fraud is a "serious offence" under the EFMA, which carries fines of up to $20,000, an imprisonment term of up to two years or both.
"Unlawful practices include making fraudulent CPF contributions to phantom workers to inflate foreign worker quotas and submitting false declarations of salaries or employment information in work pass applications," it said.
"MOM has stepped up investigations into suspected cases and will take firm enforcement actions against errant parties."
Meanwhile, it also reminded "phantom workers" that financial penalties can be imposed on individuals who provide their personal information to facilitate fraudulent CPF contributions.
In these recent cases, three phantom workers will receive administrative financial penalties for fraudulently receiving CPF contributions despite not working for these companies, according to MOM, which said they "abetted" the companies in inflating their foreign worker quotas.
"Members of the public should not accept CPF contributions from employers they are not working for, as doing so may constitute abetment of false declaration offences or abetment of the prescribed infringement of inflating a foreign worker quota," MOM said.
"Anyone aware of such activities, or who knows of persons or employers who may have contravened the EFMA, is encouraged to report the matter to MOM via the 'Report an Infringement' eService. All information provided will be kept strictly confidential."
The latest charges come as two individuals were recently found guilty of paying paying two Employment Pass holders between $800 and $2,300 per month, significantly lower than their declared monthly salaries of $5,100 and $7,350, respectively. They will be sentenced at a later date.
