Employers Prosecuted for Inflating Foreign Worker Quota by Employing Singaporean Phantom Workers

60 Mr Leong Mun Wai asked the Minister for Manpower (a) from 2010 to 2021, whether there were any prosecutions of employers inflating their foreign worker quota by employing Singaporean phantom workers; and (b) if so, how many of such employers were prosecuted in each year.

Dr Tan See Leng: From 2010 to 2012, there were about six employers a year prosecuted for inflating a firm's foreign worker quota by making CPF contributions to locals not working for the firm. Penalties included imprisonment terms of up to one year 10 months and fines of up to $35,000.

In November 2012, the EFMA was amended to make inflating a firm's foreign worker quota an administrative infringement and not a criminal offence. This allowed MOM to take swifter action against such employers and impose high financial penalties that are commensurate with the infringement. Enforcement since November 2012 is therefore by administrative financial penalties and not prosecution in the court.

From 2013 to 2021, financial penalties were issued against about nine employers per year, with the penalty up to $200,000.