Government to clamp down on errant bosses

The Government has tightened its policies on the hiring of foreign manpower, with key changes to the Employment of Foreign Manpower Act passed in Parliament yesterday.

The changes will give the Ministry of Manpower (MOM) more teeth to act against errant employers and foreign workers, as well as syndicates that have set up increasingly complex sham operations to illegally bring in and supply foreign workers.

The amendments will come into effect by the end of the year.

Acting Manpower Minister Tan Chuan-Jin noted that, while most employers are responsible, there are some who seek to get around the work- pass framework for foreigners.

He said: "The changes will ensure that employers pay the true costs of hiring foreign workers and create a level playing field for law-abiding employers. They also seek to stem the worst abuses against foreign workers."

Mr Tan noted that some errant employers who have been debarred resort to applying for work passes under other people's names, in order to continue using foreign manpower.

To prevent the use of such tactics, associates of the debarred employer may be debarred as well when the changes kick in.

Employers' scope of responsibilities may also be broadened, if necessary, with the imposing of pre- and post-employment conditions so that foreign workers can be better protected.

For example, employers might have to ensure that the In-Principle Approval letter stating employment terms is sent to a foreign worker in his native language before he leaves his country.

This reduces reliance on unscrupulous middlemen.

MOM will also have greater powers to investigate cases, including the power to enter and inspect premises by force, such as when there is reasonable belief of a breach of the manpower regulations.

One key change will also make a distinction between administrative infringements and criminal offences when breaches occur. Breaches are currently classified as criminal.

The change means that there would be fewer cases heard in court, so offences can be dealt with faster.

Still, steps will be taken to ensure that penalties for administrative infringements are severe and in line with the offences committed.

Commissioners for Foreign Manpower will look into administrative infringements. They can impose administrative financial penalties of up to S$20,000, and debar employers from applying for and renewing work passes.

CPF top-ups to include in-laws

SINGAPORE - Acting Manpower Minister Tan Chuan-Jin said today in Parliament that Singaporeans will be able to make cash or CPF to-ups to the accounts of parents-in-law and grandparents-in-law.

In moving the second reading of changes to the CPF Act, Minister Tan said the changes to the Minimum Sum Topping-Up Scheme (MTSU) come in response to feedback to an operational experience of the CPF Board.

The MTSU, which currently covers parents, grandparents, spouse and siblings, was introduced to help Singaporeans contribute to the retirement savings of their loved ones.

They can do so by topping up their CPF Special Account (SA) or Retirement Account (RA).

From January 1, 2013, this will now be extended to include parents-in-law and grandparents-in-law.

Other changes to CPF rules include, simplifying the channels for making top-ups to a member's own SA and RA and introducing a minimum age of 16 when making CPF nominations.

The Ministry also refined the current housing refund policy for CPF funds.

Minister Tan said that the new policy will ensure that CPF housing refunds are consistent with the amounts contributed by each co-owner to the property.

At the same time, it will not require older members to retain in their CPF more refunds than necessary.

Currently, members who sell their property before age 55 are required to refund into their CPF account the principal amount that they withdrew for the property, including the prevailing Ordinary Account (OA) interest that would have accrued on this amount, or P+I in short.

At age 55, a member is required to set aside the Minimum Sum (MS) from his existing CPF balances, and he may withdraw his CPF savings in excess of the MS after having also set aside the required amount in his Medisave Account for his healthcare needs.

So when a member sells his property after age 55, only the amount needed to bring the member up to his MS must be refunded.

"In other words, for a member who sells his property after age 55, he will refund his MS shortfall or his P+I, whichever is lower. Remaining proceeds from the sale of his property is received in cash," outlined Minister Tan.

He pointed out that while the current refund rules for members over 55 avoid collection of housing refunds in excess of MS, there may be certain scenarios involving more than one co-owner, where the refunds required of the co-owners may not match the amount of CPF each co-owner used to pay for that property.

When this arises, co-owners can decide to distribute the cash proceeds among themselves such that the total of the cash proceeds and CPF refunds for each co-owner matches the amount that each co-owner had contributed towards payment of the property.

"However, where the co-owners are no longer on good terms, the distribution of cash proceeds becomes more contentious and the co-owners may not always be willing to consider the amount that the other party has contributed towards the property," he said.

He added that in cases where the property is sold at a loss and there may not be any cash proceeds for distribution, the current housing refund requirements may create some unhappiness among members.

In addressing this issue, all members, regardless of their age, will be required to refund their P+I.

This refinement will ensure co-owners receive CPF refunds that are commensurate with their usage of CPF savings for the property.

Where the P+I refund exceeds the MS shortfall for members aged 55 and above, the refunded amount will first be used to set aside their cohort Minimum Sum in their RA and the required Medisave amount in their MA, while the excess can be withdrawn.

"This is no different from the existing requirement that applies to all members past age 55 who wish to withdraw their OA and SA savings in excess of the MS," he said.

All changes will take effect from January 1, 2013.