HRSINGAPORE Community Discussions

Cancellation of Work Permit

QUESTION

Dear HR Professionals,

We wish to understand if we are compliant to exercise the following to Singapore leavers (foreigner). The company is cancelling the work permit on 31st December 2019 and placing the leaver on unpaid leave from 1st to 31st December 2019 to allow the leaver time to look for a new job.

1) Payroll to record official last day on 31st December 2019.
2) Work Permit to cancel on 31st December 2019.
3) All entitlement stop on 30th November 2019.
4) All encashment (for instances, annual leave) are recorded in November 2019 payroll period.
5) Submit IR21 with official last day 31st December 2019 with all reporting items (already a record in November 2019 payroll).

Please share your better practice, if you have encountered similar situation previously.

Thanks.

SY

 


 

REPLY 1

If the worker's last day of service with the company is on 31 December then technically even while on unpaid leave he/she should still be entitled to benefits as an employee. I dont think it should stop in Nov.

AK

 


 

REPLY 2

I think Entitlement stopping at Nov is fine as it’s under unpaid leave for 1 month. Therefore it’s right to only pro-rate the entitlement-AL till Nov. For other entitlement like sick leave and doctor consultation fee, insurances should still applies.

JW

 


 

REPLY 3

If this is a termination, there isn’t good justification to extend your liability in any case. I do not see an issue with the person being on employment with your company till 31 Dec 2019 contractually. However, keeping the person on without a salary extends your liability especially if this person does not report in to the office, regardless of past behavior. In other words, you are taking on company risk to offer individual goodwill. Will other employees expect similar treatment? I assume that handover is complete otherwise you would have the person doing (paid) handover up to the last day, which is more conventional, so this unpaid leave is surplus.

Administratively, have you closed off the loose ends for recovering the work permit card and tax withholding clearance with IRAS in case the person leaves Singapore for good? These are for your consideration.

HK

 


 

REPLY 4

The employee who was on unpaid leave would not be entitled to Annual leave so your calculation is correct. Except all insurance coverage and medical benefits still applied at the time

Carolle

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