Hiring foreign workers can be a costly and time-consuming process, especially when factoring in relocation expenses, airfare, and the administrative hurdles of bringing talent from overseas. There is a more efficient alternative: hiring existing work permit holders already in Singapore.
By tapping into this readily available talent pool, businesses can save on significant costs while streamlining the hiring process, ensuring they fill critical roles quickly and effectively.
However, a WP holder changing employers is not as simple as just resigning and starting a new job. The process involves a specific set of procedures governed by the Ministry of Manpower (MOM) to ensure a legal and smooth transition.
As an employer, understanding the correct procedure and eligibility requirements are essential to avoid potential penalties, work disruptions, or cancellation of your prospective employee’s pass. This guide provides a detailed walkthrough of how to transfer a work permit to another employer in Singapore, covering the necessary steps, eligibility criteria, and key obligations for all parties involved.
Key Takeaways
- Hiring an existing Work Permit holder already in Singapore reduces downtime and accelerates the hiring process.
- Avoid relocation and airfare expenses typically incurred when hiring foreign workers from abroad.
- Employers can hire within their business sector without requiring workers to leave Singapore, provided MOM conditions are met.
- Partnering with corporate service providers ensures smooth transitions, proper documentation, and adherence to MOM regulations.
Benefits of Transferring a Work Permit
Hiring an existing work permit holder in Singapore can offer several advantages for employers, especially in industries that rely heavily on foreign manpower. Here are some key reasons why hiring an existing work permit holder might be a strategic choice:
Faster Hiring Process
Since the worker is already in Singapore, the hiring process is typically quicker compared to bringing in a new foreign worker from overseas, provided that the worker meets MOM’s eligibility requirements. This reduces downtime and allows businesses to fill critical roles more efficiently.
Familiarity With Local Work Environment
Existing WP holders are already accustomed to Singapore’s work culture, regulations, and environment. This minimises the need for extensive onboarding or cultural adjustment.
Cost Savings
Employers can save on costs associated with relocation, airfare, and other expenses typically incurred when hiring foreign workers from abroad.
Retention of Skilled Talent
Many existing WP holders have valuable skills and experience in their respective industries. Hiring them allows businesses to retain talent that is already trained and experienced in the local market.
Related Read: A Complete Guide to the Work Permit Renewal Process in Singapore
Applying for a Transfer Worker
Malaysian WP Holders
Employers can apply for a new WP for an existing Malaysian WP holder with the general WP application procedure. Before applying for the new WP, you must ensure that:
- The Malaysian worker informs their intention to cease employment for their current employer beforehand to avoid potential problems getting their existing WP cancelled
- The worker must agree to join your company
Upon the approval of the WP application, the new WP can be issued after the existing WP is cancelled by their current employer or has expired.
Non-Malaysian WP Holder: Sector-Specific Rules
There are certain requirements to adhere to if you hire existing non-Malaysian workers. These rules apply across all sectors, including:
- Construction
- Manufacturing
- Services
- Process
- Marine Shipyard
You can hire existing workers without them having to leave Singapore before submitting a new application if certain conditions are met. Note that you can only hire from your business sector – employee transfers to your company are not allowed if they are from a different sector than yours. Employees from these countries qualify:
- North-Asians
- People’s Republic of China (PRC)
- Non-Traditional Sources (NTS)
Existing Employer in Agreement
You can apply for a new work permit if the prospective employee’s work permit under their current employer has a validity of at least 14 days. Otherwise, you must obtain pre-approval from MOM first and get the existing employer to sign the consent form.
The new work permit application is the same as the general work permit application process. Here is the typical process of applying for a new WP:
| Step | Details |
|---|---|
| Submit New Application |
|
| Get WP Issued |
|
If the worker is determined to be eligible for the transfer, an SMS or email will be sent to the existing employer, who then needs to log in to WP Online to agree or reject the transfer within 5 working days. If consent is not given, the application submitted will be automatically rejected.
Existing Employer Not in Agreement
If the current employer is not in agreement, you must apply for pre-approval from MOM from 40 to 21 days before the employee’s work permit expires. You can only apply for a new work permit after this step and issue the permit after approval, and when the current permit has been cancelled or expires.
Responsibilities of New Employer During Transfer Process
| WP Status | What to Do Next |
|---|---|
| WP with new employer is approved, but still live for current employer | Ensure that the pass is issued before the IPA expires, or earlier if the current employer agrees. If you are hiring the worker without the current employer’s consent, get the new WP issued within 7 days after the current one expires. |
| WP with new employer is approved, but cancelled or expired with current employer | Get the WP issued immediately to avoid overstaying fines. Submit a request if you need more time for the pass to be issued. |
| IPA expired, cancelled, or withdrawn with the new employer, but still live with the current employer | No further action required. |
| IPA withdrawn or cancelled before expiration of the existing WP with the new employer, but WP expired under the current employer | No further action required. |
| IPA withdrawn or cancelled after the worker’s WP expired under the new employer, and expired under the current employer. | You must arrange to send the worker home. |
Practical Advice for a Smooth Transition
A mismanaged work permit transfer can create significant stress and legal complications. Follow these best practices to ensure a seamless process.
- Do Not Resign Without an IPA: This is a critical rule. The IPA is your prospective employee’s assurance that their new employment is approved by MOM. Resigning before receiving it is a major risk.
- Communicate Clearly: Ensure that your prospective employee maintains open communication with both their current and future employers about timelines, especially regarding their last day of service and the start date at the new company.
- Plan for Processing Times: Work permit applications can take up to several weeks to process. Factor this timeline into your plans to ensure there is no gap between employment that could affect your prospective employee’s legal stay in Singapore.
- Partner with Professionals: The rules surrounding work permit applications can be complex and are subject to change. Engaging a professional corporate services firm like InCorp can help both the employer and employee navigate the process, ensuring all documentation is correct and all regulatory requirements are met.
A Strategic Approach
Transferring a work permit in Singapore is a structured process that requires careful planning and strict adherence to MOM regulations. By understanding the steps, from securing an IPA to coordinating the cancellation and issuance of permits, employees and employers can manage the transition effectively.
A successful transfer ensures legal compliance and supports career growth and talent mobility within Singapore’s dynamic economy. By approaching the process with diligence and professional guidance, you can make the transfer experience a smooth one. Contact our team to find out more!
FAQs about Transfering a Work Permit to Another Employer
Can an employment pass be transferred?
- No, an EP in Singapore cannot be directly transferred between employers.
Where can I engage a work permit transfer service?
- Our specialists at InCorp are always ready to assist you throughout the entire work permit transfer process!
What happens if the new Work Permit application is rejected?
- If the application is rejected, the employee cannot start work with the new employer. They must either find another job or leave Singapore before their STVP expires.
Learn more about transferring work permits with practical advice!
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