For foreign workers and expats in Singapore, work permit cancellation is a crucial process. As an employer, you are required to assist them in this procedure, whether by performing the cancellation yourself or through an employment agent like InCorp.
We take you through the various aspects of cancelling your employee’s work permit in this blog to ensure that you have a better understanding of the compliance issues to note.
Can a Work Permit Be Cancelled?
If an employee no longer works for you or when the work permit expires, the work permit must be cancelled. It must be cancelled within 1 week from the last day of notice.
Exemptions From Work Permit Cancellation
In certain situations, you need not cancel your worker’s work permit. Specifically, you do not need to do so if:
- The work permit holder becomes a Singapore Permanent Resident (SPR)
- The pass has expired. If the pass holder remains in Singapore, you must ask for a Special Pass to provide them with a valid stay in Singapore; failure to do so will lead to an overstaying fine
What to Do Before Cancelling a Work Permit
As an employer, you must perform these tasks before you cancel your worker’s work permit:
- Give your worker reasonable notice on the repatriation back home
- Obtain tax clearance from the Inland Revenue Authority of Singapore (IRAS) at least 1 month before your worker’s final employment date
- Ensure that all outstanding employment issues that your worker may raise are settled, including salary payments
- Make sure that your worker has a valid passport
- Discuss and have a written agreement with your worker on these aspects before buying an air ticket:
- Transit arrangements such as connecting flights and the layover duration
- The allowance your worker needs to sustain themselves during the transit
- Buy an air ticket with check-in baggage and pay for connecting transport costs to the international entry port in your worker’s home country or region closest to their hometown. Your worker must depart Singapore within 2 weeks from the work permit cancellation
How Do I Cancel a Work Permit in Singapore?
Only an employer or employment agent such as InCorp can cancel a work permit in Singapore. Here is the cancellation procedure:
| For a Worker in Singapore | For a Worker Who Has Left Singapore |
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Remember that as the employer, you must ensure that a worker leaves Singapore before the Special Pass expires to avoid the consequences of overstaying. If your worker is not Malaysian, the security bond will usually be discharged 1 week after their departure if all conditions are met.
How Many Days Will It Take to Cancel Work Permit?
A work permit is typically cancelled within 3 working days.
How to Check if a Work Permit is Cancelled
You must access the MOM website to check the validity of your employee’s work permit or the status of your employee’s new work permit application. No login is needed.
What Happens After You Cancel a Work Permit
After you cancel a worker’s work permit, the worker cannot work even while waiting to depart Singapore. The worker’s levy will be charged until 1 day before the cancellation of the permit.
Remember to cut the card in half and throw it away to prevent misuse.
How Long Can Your Employee Stay in Singapore After Canceling a Work Permit?
An employee can remain in Singapore for the duration of the Special Pass, which lasts for up to 14 days. Employers are reminded that the worker must depart Singapore before the Special Pass expires.
What Are the Consequences of Overstaying?
Overstaying in Singapore may lead to an overstaying fine being imposed. It is also a criminal offence for foreigners to remain in Singapore after a visa’s expiry date and for companies to hire workers without a valid work pass.
What Should Employees Do Before Leaving Singapore Permanently?
There are several things that a worker should settle beforehand, should they decide to leave Singapore permanently. For example, employers must seek tax clearance on their behalf. You must inform IRAS and hold on to the payments due to your worker from the date of the employment cessation notice, or the date of employment termination.
After IRAS carries out an assessment and issues a tax clearance certificate to verify your employee’s tax payment, you must release the payment due. It typically takes up to 21 days to perform a tax clearance, and IRAS may appoint your employee’s bank to act as an agent for tax recovery purposes.
If your employee has overdue taxes, they may be stopped from leaving Singapore through a stop order certification. If this happens, your employee may need to get a release letter from IRAS.
InCorp Can Assist You Beyond Work Permit Cancellation
We have a team of knowledgeable and experienced immigration specialists that can assist you with related tasks beyond just work permit cancellation. Leverage our expertise and put your mind at ease knowing that your employee’s matters are well and fully covered. Contact us to find out more today!
FAQs about Cancelling a Work Permit in Singapore
- This is a pass that allows your worker to remain in Singapore for up to 2 weeks before having to depart.
- Your employee must pass you the work permit card after cancellation to cut it into half and dispose of it.
- Our reliable immigration team is well-poised to handle a variety of work pass and work permit matters, including cancellation. Contact us for more advice and help!
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