Singapore’s Ministry of Manpower (MOM) has arrested four people over suspected employment-related offences following an enforcement operation targeting illegal practices used to inflate foreign worker quotas.
The four individuals, arrested on September 2, comprise two company directors and two staff members from the construction sector. MOM is investigating them for suspected offences under the Employment of Foreign Manpower Act (EFMA), including false declarations and the collection of employment-related kickbacks.
The two directors are suspected of making fraudulent Central Provident Fund (CPF) contributions to Singaporeans who were not employed by their companies. These so-called “phantom workers” were allegedly used to inflate the companies’ foreign worker quotas, enabling them to bring in additional migrant workers.
A further 21 people are assisting with investigations over suspected involvement in such illegal phantom worker arrangements.
MOM said it will continue taking enforcement action against companies suspected of artificially increasing their foreign worker quotas through such practices.
Under the EFMA, making false declarations in work pass applications can result in a fine of up to S$20,000, imprisonment for up to two years, or both. Entities or individuals convicted of such offences may also be barred from employing foreign workers.
Individuals who provide their particulars for fraudulent CPF contributions may also face prosecution for abetting false declarations. The offence carries a fine of up to S$20,000, imprisonment for up to two years, or both.
The collection of employment-related kickbacks is separately punishable by a fine of up to S$30,000, imprisonment for up to two years, or both.
MOM has also warned members of the public against accepting CPF contributions from businesses they do not work for, as they could potentially be liable for aiding false declaration offences by employers.
The ministry urged anyone with information about suspected violations of the EFMA to report them through its “Report an infringement” eService. MOM said information submitted through the channel will be kept strictly confidential.
The latest enforcement action comes as Singapore continues to regulate the use of foreign labour through work pass requirements and foreign worker quotas, while stepping up action against employers that seek to circumvent these controls.