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Advisory - Labour supply companies should pass on the benefits from the Jobs Support Scheme to your clients

Issued on 26 May 2020
Updated on 12 June 2020

  1. The Jobs Support Scheme (JSS) was announced at Budget 2020, and further enhanced at the Resilience and Solidarity Budgets1. The JSS is intended to provide wage support to help employers retain their local employees in this challenging time.
  2. The Ministry of Manpower (MOM) is aware that there are companies involved in labour supply services where employees are contracted out to work for their clients. These labour suppliers, which may include licensed employment agencies (EAs), receive JSS for all their local employees as well as those whose services are contracted out. Given the intent of JSS, to provide wage support for local employment, labour suppliers should pass on the JSS payouts for such employees to the clients who continue to pay full fees for the employees’ contracted services.
  3. Therefore, all suppliers of labour services2 are expected to:
    1. Continue paying the prevailing salaries of the employees if they are working or provide a baseline wage according to the updated advisory on salary and leave arrangements (“Advisory”), issued by the tripartite partners, if the employees are unable to work; and
    2. Pass on to your clients the full JSS wage support received for each employee who is currently contracted out in the labour supply arrangement3.
  4. In the event that clients decide to terminate the labour supply contract, you are expected to use the JSS payouts to continue paying your employees in a fair and responsible manner. You may refer to the Advisory for guidance.
  5. For further questions, please refer to the FAQs.

FOOTNOTE

  1. Please refer to the IRAS website for further information.
  2. This advisory does not apply to service providers that offer outsourced services to clients, such as cleaning, security, landscape maintenance, waste management, facilities management, managing agent, lift and escalator maintenance services. Unlike labour suppliers, outsourced service providers are responsible for the day-to-day management of the contracted workers such as supervising their day-to-day work, appraising their performance, and providing them with training. If there is any significant change in these services required, service buyers and service providers should engage each other to reach a mutually agreed revision to fees for services. Please refer to the advisories on ensuring the sustainability of the various outsourced services sectors.
  3. Labour supply companies can mutually agree with your clients the manner in which to pass on the full JSS wage support. For example, you can adjust the salary component in the contracts with your clients to account for the full JSS wage support that you have received.

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