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Security bond requirements for foreign worker

As an employer, you need to purchase a security bond for each non-Malaysian foreign worker you want to employ. You can buy the bond at any bank or insurance company.

What is a security bond

You need to place a $5,000 security bond for each non-Malaysian Work Permit holder you want to employ. The bond is in the form of a banker’s or insurance guarantee to support the security bond.

The bond is between you (the employer) and the Government of Singapore. It is used to ensure that both you and your workers comply with the conditions of the Work Permit. You cannot ask the worker to pay for the bond.

When to buy the bond

You must buy the security bond before your worker arrives in Singapore.

Please ensure that your insurers send us the security bond details (takes up to 3 working days) before your workers arrive and that the bonds take effect on their arrival date. If not, they will be refused entry and you will have to pay to send them home.

You can log in to WP Online to check the status of the security bond.

When will the bond be discharged

You will be discharged from the security bond liability for a worker only if you meet all of these conditions:

  • You have cancelled the Work Permit.
  • The worker has returned home.
  • You did not breach any of the conditions of the security bond.

If all conditions are met, the security bond will usually be discharged one week after the worker left Singapore.

You’ll be notified by post when the security bond is discharged.

When the bond will be forfeited

Your security bond may be forfeited if:

  • You or your workers violate any of the conditions of the Work Permit or the security bond.
  • You don’t pay their salaries on time.
  • You fail to send them back when their Work Permits are expired, revoked or cancelled.
  • Your worker goes missing. If a worker goes missing, half of the security bond ($2,500) will be forfeited if you have made reasonable effort to locate the worker and filed a police report.

You will not be liable for your workers’ violations (such as those relating to pregnancy) if you can prove that you have:

  • Informed them of the Work Permit conditions they must comply with.
  • Reported a violation when you first become aware of it.