Work Permit Cancellation in Singapore: What Employers and Employees Need to Know

In Singapore, the work permit is a crucial document that allows foreign employees to work in Singapore legally. However, circumstances may arise where the work permit needs to be cancelled, whether due to the employee’s departure, completion of the work contract, or any other reason. Understanding the process and implications of cancellation of work permit is essential for both employers and employees to ensure compliance with the Ministry of Manpower (MOM) regulations.

The work pass must be cancelled for various reasons, such as when the contract ends, the employee leaves Singapore, or in cases where the employee is dismissed. Employers are legally responsible for initiating the request to cancel the work permit when these events occur, and failure to do so can lead to penalties. Similarly, employees should understand the importance of cancellation of work permit to avoid overstaying their visa and facing immigration issues. This article provides a comprehensive guide on work permit cancellation in Singapore, including the reasons for cancellation, the process involved, and the responsibilities of both parties.

Reasons for Work Permit Cancellation

There are several scenarios where an employer or employee might need to cancel your work permit in Singapore. The most common reason is when an employee completes their employment contract or voluntarily leaves their job. If the employee has signed a fixed-term contract and that term ends without renewal, the employer must proceed with the cancellation of work permit. In this case, the employee typically leaves the country or transitions to another position, prompting the cancellation request. If the employee is leaving Singapore permanently, it is essential for the employer to take the necessary steps, including ensuring the employee has the required documentation, such as their air ticket.

Another reason for work permit cancellation is when the employee is dismissed, either for cause or due to mutual agreement. In these cases, the employer must act swiftly to ensure the employee’s departure and cancel the work permit promptly. Similarly, if the employee voluntarily resigns, the employer is still obligated to cancel the work permit once the employee has completed all exit procedures. Employers must also ensure that the work permit is cancelled if the employee is transferring to a new company in Singapore, or in cases where the employee decides to leave the country permanently. The cancellation of work permit process helps avoid complications with MOM and ensures that the employee’s stay in Singapore remains legal. If the worker is still in Singapore, the cancellation process becomes even more urgent.

How to Cancel a Work Permit in Singapore

The process for cancel your work permit in Singapore is straightforward but requires attention to detail. Employers must initiate the work permit cancellation process through MOM’s online WP Online system. The first step is for the employer to ensure that the employee has either left the country or is scheduled to leave before completing the cancellation. This is an important prerequisite, as MOM requires the employee’s departure to be confirmed before cancelling the work permit. If the employee is leaving Singapore permanently, it is essential for the employer to collect all the necessary documents, including the air ticket and confirmation of departure. You will need to ensure that everything is properly documented before proceeding.

Once the employee’s departure is confirmed, the employer can log into the WP Online system and submit the request to cancel the work permit. The system requires specific details, including the work permit number, the reason for cancellation, and the employee’s departure information. The employer must also return the employee’s work pass card to MOM, either physically or through mail, depending on the situation. After the submission, MOM will process the cancellation request, and in most cases, it will be approved within 1-3 working days. Employers should ensure that they have settled all outstanding payments or levies before submitting the cancellation request to avoid delays in the process. If the employee’s contract is coming to an end and they are still in Singapore, it is important to comply with the cancellation date.

What Happens After Work Permit Cancellation?

Once a work permit has been cancelled, both the employer and employee have certain obligations to fulfill. The most important action is the employee’s departure from Singapore. After the work permit expiry date, the employee must leave the country within a specified time frame, typically within 1 week. If the employee does not leave by this deadline, they may face immigration penalties, including a ban from re-entering Singapore. The employer should make sure that the employee departs as per MOM’s guidelines to avoid any legal complications. This step must be taken 1 day before the cancellation to ensure smooth processing.

For the employer, once the work permit cancellation is processed, they may be entitled to a refund for the unused portion of the work permit levy, depending on when the cancellation occurs. This levy is refunded only after the cancellation request is successfully processed. Employers should also keep in mind that the employee’s final payments, including salary and other benefits, should be settled before the work permit is cancelled. It is important to maintain proper documentation for the transaction to ensure everything is in order. Once all the necessary steps are completed, both parties can be confident that the employee’s departure and work permit cancellation are handled in full compliance with Singapore’s immigration laws. In the event of work permit for migrant workers, the cancellation process must follow the same steps to ensure compliance.

Consequences of Failing to Cancel a Work Permit

Failure to cancel the work permit within the required time frame can result in significant consequences for both employers and employees. For employers, failing to cancel the work permit could lead to fines or penalties from MOM. If the employee overstays or is found working without a valid permit, the employer could face further scrutiny from the authority of Singapore. MOM monitors and audits companies to ensure that all work permit cancellations are processed promptly and correctly. Non-compliance can severely impact a company’s ability to hire foreign workers in the future.

For employees, not having their work permit cancelled can lead to immigration issues, including fines or bans from re-entering Singapore. If an employee does not leave the country after their work permit has expired or if the cancellation is delayed, they may face legal action or be banned from entering Singapore for a period. It is crucial for both the employer and employee to complete the cancellation of work permit process properly to avoid complications. Employers should also advise departing employees about the importance of cancelling their work permit in a timely manner to ensure compliance with MOM’s regulations. If the worker cannot work during this period, they may need a special pass or request for a short extension from MOM.

Important Things to Remember

When cancelling a work permit, it is essential for employers to ensure that all payments, including salaries, levies, and any other dues, are settled before submitting the cancellation request. MOM will not process the cancellation if there are outstanding payments or issues related to the employer’s financial obligations. Employers should review the contract and ensure all terms are met before initiating the cancellation. Employers also must cancel the work permit before the employee’s departure from Singapore to ensure compliance with MOM’s guidelines.

Another important aspect to consider is the proper return of the work permit card. If the employee is not physically present in Singapore, the employer must ensure that the card is returned to MOM by mail, along with the necessary cancellation documentation. Employers should keep records of these steps as proof of compliance. Failure to follow the required procedures can result in delays, penalties, or complications with future work pass applications. Employers should always review MOM’s guidelines to ensure they are following the correct process. If the employee has a special pass, they must show the special pass to the immigration officer when leaving Singapore.

Conclusion

Work permit cancellation in Singapore is a straightforward process when handled correctly. Employers must cancel the work permit when the employee departs, whether voluntarily or upon completion of their contract. Similarly, employees should ensure they leave Singapore on time and comply with immigration laws. By adhering to proper procedures, both employers and employees can ensure that the work permit is cancelled without complications, and all necessary requirements are met before the employee’s departure.

For more assistance on work permit cancellation or any other employment-related matters, feel free to reach out to our team. We are here to guide you through the process and ensure your business remains compliant with MOM regulations. Remember, if you are looking to apply for your work permit or need help with special passes, we’re here to assist you every step of the way. You can find more information on the MOM website for any additional details.