If you’re an employer in Singapore, you may need to buy a security bond for each non-Malaysian worker you employ. A security bond is a deposit that serves as a guarantee to the Ministry of Manpower (MOM) that you’ll comply with the conditions of your worker’s Work Permit. This article will cover everything you need to know about buying a security bond in Singapore, from what it is to how to obtain one.
Securing a Work Permit Bond in Singapore can be a complicated process, but it’s essential if you want to hire non-Malaysian workers. You’ll need to buy a $5,000 security bond for each worker, except for Malaysian workers. You can’t ask your worker to pay for the bond, and you’ll need to buy it before your worker arrives in Singapore. You can purchase the bond from a bank or insurer, but you’ll need to inform them of the template to be used.
After the Bond Issuance, you’ll need to ensure that you comply with the conditions of your worker’s Work Permit. If you don’t, MOM may forfeit your security bond. The bond will be released to you when your worker’s Work Permit is cancelled. If you need to renew your worker’s Work Permit, you’ll need to buy a new security bond.
Key Takeaways
- You’ll need to buy a $5,000 security bond for each non-Malaysian worker you employ, except for Malaysian workers.
- You can purchase the bond from a bank or insurer, but you’ll need to inform them of the template to be used.
- If you don’t comply with the conditions of your worker’s Work Permit, MOM may forfeit your security bond.
Securing a Work Permit Bond in Singapore
If you are an employer in Singapore who is planning to hire non-Malaysian workers, you are required to purchase a security bond for each worker. This bond acts as a guarantee to the Ministry of Manpower that you will comply with the conditions of the work permit and that your worker will not break any laws. In this section, we will guide you through the process of securing a work permit bond in Singapore.
Understanding the Requirements
Before you can purchase a security bond, you must first obtain an in-principle approval letter from the Ministry of Manpower. This letter confirms that your worker is eligible for a work permit and contains important details such as the worker’s name and the CPF submission number. Once you have obtained this letter, you can proceed to purchase a security bond.
The security bond amount required is $5,000 for each non-Malaysian work permit holder you employ. It is important to note that you cannot ask your worker to pay for the bond. If you are an employer from the construction, marine shipyard or process sector, you will also need to observe additional security bond conditions in respect of your work pass holders.
The Application Process
To purchase a security bond, you can approach any bank or insurer that is approved by the Ministry of Manpower. You will need to provide them with the template for the security bond and inform them of the worker’s details. The bank or insurer will then issue the security bond to you, which you can submit to the Ministry of Manpower.
Once you have obtained the security bond, you will need to submit it along with the in-principle approval letter to the Ministry of Manpower. This can be done online through the Work Permit Online (WPOL) system. The Ministry of Manpower will then review your application and if it is approved, they will issue the work permit.
Insurance Options for Security Bonds
If you prefer to purchase insurance for your security bond, you can approach an insurance broker that is approved by the Ministry of Manpower. The insurance premium will depend on factors such as the worker’s nationality and the duration of the work permit.
In conclusion, purchasing a security bond is a mandatory requirement for employers in Singapore who wish to hire non-Malaysian workers. By understanding the requirements and following the application process, you can ensure that your worker is eligible for a work permit and that you comply with the conditions of the work permit.
After the Bond Issuance
Once you have purchased the $5,000 security bond for your migrant worker or domestic helper, it is important to ensure that you comply with the regulations set by the Ministry of Manpower (MOM) to avoid any penalties or violations. In this section, we will discuss what you need to do after the bond issuance.
Ensuring Compliance with MOM Regulations
To ensure compliance with MOM regulations, you need to make sure that your worker completes the onboarding requirements at the Onboard Centre immediately upon arrival in Singapore. You should also ensure that your worker has the necessary medical insurance and personal accident insurance, as required by MOM.
Additionally, you should provide proper accommodation and working conditions for your worker, and ensure that they are not working in any prohibited occupations or industries. If your worker is found to be working in a prohibited occupation or industry, your bond may be forfeited.
Dealing with Bond Violations and Penalties
If your worker violates any MOM regulations, such as working in a prohibited occupation or industry, or if they are found to be involved in any illegal activities, your bond may be revoked or forfeited. In such cases, you will be required to pay a penalty fee, which can be as high as $15,000.
It is important to note that if your worker is found to be involved in any illegal activities, you may also face legal consequences, such as fines or imprisonment.
Cancellation and Discharge of Bonds
If your worker’s employment contract has ended and there are no outstanding claims against the bond, you can apply for the cancellation and discharge of the bond. To do this, you need to submit a request to the bank or insurer that issued the bond, along with the necessary documents.
If your worker has violated any MOM regulations or if there are any outstanding claims against the bond, the cancellation and discharge of the bond may be delayed until the issue is resolved.
In conclusion, purchasing a security bond for your migrant worker or domestic helper is an important step in complying with MOM regulations. However, it is equally important to ensure that you comply with the regulations after the bond issuance to avoid any penalties or violations.
Frequently Asked Questions
How can one purchase a security bond for foreign employees?
If you are an employer who wishes to hire non-Malaysian Work Permit holders, you must purchase a security bond worth $5,000 for each worker. You can buy this bond from any bank or insurer in Singapore. Simply inform them of the template to be used when buying the bond.
What steps should be taken to apply for a maid’s security bond?
As an employer of a foreign domestic worker in Singapore, you must purchase a security bond worth $5,000. To apply for a maid’s security bond, you can approach any insurance company or bank in Singapore. You will need to provide your maid’s Work Permit details, your own identification documents, and pay the bond fee.
What’s the price tag on a security bond within Singapore?
The standard price for a security bond in Singapore is $5,000. This amount is payable for each non-Malaysian Work Permit holder or foreign domestic worker that you employ.
Is there an option to check the status of a security bond online?
Yes, you can check the status of a security bond online through the Ministry of Manpower’s website. You will need to have your SingPass or CorpPass login details to access the information.
Could you shed light on whether security bonds are refundable?
Security bonds are refundable if the foreign employee has completed his or her work contract, and there are no outstanding claims or investigations against the employer or employee. The bond will be refunded to the employer after deducting any outstanding levies or fines.
What exactly does a ‘5000 security bond’ entail?
A $5,000 security bond is a binding pledge to pay the government if either you or your employee breaks the law or Work Permit conditions. The bond is in the form of a banker’s or insurer’s guarantee. It is a legal requirement for employers in Singapore to purchase a security bond for each non-Malaysian Work Permit holder or foreign domestic worker that they employ.