Work Permit (Foreign Worker) - Security Bond
All employers of non-Malaysian Work Permit holders, including Foreign Domestic Workers, are required to deposit a $5,000 Security Bond with MOM. It can be submitted in the form of a Banker's Guarantee or Insurance Guarantee, payable to the Controller of Work Passes. The security bond must be furnished prior to the foreign worker's arrival in Singapore, failing which entry into Singapore will not be allowed.
The security bond is signed between the employer and the Government. The foreign worker is not required to pay the security deposit.
Conditions of Security Bond
- During the Work Permit holder's stay in Singapore, the employer is responsible for the prompt payment of salary and the costs of his upkeep and maintenance, including medical treatment.
- The employer must give the Work Permit holder reasonable notice of his repatriation. The employer must also bear the full cost of their repatriation, ensuring that all outstanding salaries or monies are paid before repatriation.
- The employer must provide acceptable accommodation for their employees who are Work Permit holders.
- Should the Work Permit holder die while in Singapore, the employer is responsible for the cost of burial or cremation or the return of the body to the country of nationality.
- The employer shall produce to the Controller of Work Passes any person whose Work Pass has been cancelled or whose Visit Pass/Special Pass has expired when required to do so.
- The employer must employ the worker in accordance with the Work Pass applicable to them.
- The employer must take reasonable steps to ensure that the Work Permit holder complies with the Work Pass Conditions applicable to them, and to report any violation to the Controller of Work Passes.
- The employer must inform the Controller of Work Passes in writing within seven days of the completion/termination of employment, or the worker's resignation from employment. He must repatriate them within the period specified, subject to giving them reasonable notice of repatriation.
The Security Bond form must be signed by the Partner/Sole Proprietor. For private limited companies, it must be signed by a member on the Board of Directors/General Manager.
The signatory's name must appear in the ACRA printout. If signed by any other persons than the above, an authorisation letter from a member on the Board of Directors will be required.
Discharge of Security Bond
The employer will be discharged from the Security Bond liability for that worker only if the following conditions are met:
Forfeiture of Security Bond
Employers risk forfeiting the security bond if they or their worker violates conditions of their Work Permit. Typical violations include failing to pay salaries on time, or failing to repatriate the foreign worker after cancelling his/her Work Permit.
Employers are not liable for violations of Work Permit conditions (such as those relating to marriage with a resident or pregnancy) if they have done their best to keep the Work Permit conditions, as well as to manage their worker's behaviour in line with the Work Permit conditions. Specifically, they should do the following:
- Inform the Work Permit holders that they are required to comply with the Work Permit conditions
- Report to the relevant authorities if they are aware that their foreign workers are not complying with Work Permit conditions. Previously, employers could lose the security deposit if the worker breached the condition, despite the employer's efforts to.
In cases where a Work Permit holder absconds, the employer will recover half of the Security Bond ($2,500) if he provides proof he has made reasonable efforts to locate the worker, such as a missing persons report from the police.