Cancelling an Employment Pass - Singapore
- a22162
- Jul 3
- 5 min read
Cancelling Singapore Employment Pass Guide
In Singapore, the cancellation of an Employment Pass (EP) is primarily the responsibility of the employer or an appointed employment agent. This applies whether the employee has resigned, been terminated, retrenched, or is simply leaving Singapore permanently.
Here's a breakdown of the process and key considerations:
When to Cancel an EP:
Employee no longer works for the employer: This is the most common reason.
Employee resigns and is leaving Singapore permanently: The EP must be cancelled within one week from the departure date, unless it has already expired.
Employee is retrenched.
Employee's EP has expired and they are still in Singapore (a Short-Term Visit Pass will be needed).
Employee is unemployed for more than 6 months (for Personalised Employment Pass - PEP).
Employee becomes a Singapore Permanent Resident (PR): The EP will be automatically cancelled.
Who Initiates the Cancellation:
Employer: The employer is legally obligated to initiate the cancellation process through the Ministry of Manpower's (MOM) online system (MyMOM Portal or EP eService).
Employment Agent: An authorized employment agent can also submit the cancellation request on behalf of the employer.
Pass Holder (for PEP): For Personalised Employment Pass holders, they can initiate the cancellation themselves.
Timeline for Cancellation:
Within 1 week: The EP must be cancelled within one week after the last day of employment or within one week from the pass holder's permanent departure from Singapore (if they have left).
Up to 14 days in advance: Employers can submit the cancellation request up to 14 days before the intended cancellation date.
Immediate: Unless an advance cancellation is requested, the cancellation is often immediate once submitted online.
Process for Cancellation:
Employer submits cancellation request online: The employer logs into the MyMOM Portal or EP eService to submit the cancellation.
Required details typically include: Passport details, pass holder's email and contact number, employer's email and contact number.
MOM processes the request: Cancellation is usually immediate, especially if submitted online during office hours.
Issuance of Short-Term Visit Pass (STVP): If the pass holder is still in Singapore, MOM will usually issue a Short-Term Visit Pass (STVP) by email upon cancellation. This STVP grants a valid stay in Singapore for typically 30 to 90 days (it can vary). This allows time to settle affairs or find new employment.
Return of Original Work Pass: The original EP card must be cut in half and discarded or returned to MOM to prevent misuse. The employer typically handles this.
Important Considerations Before/After Cancellation:
Tax Clearance (IR21): The employer is responsible for seeking tax clearance from the Inland Revenue Authority of Singapore (IRAS) for the departing employee. This should be done at least 1 month before the last day of employment. The employer will withhold part of the employee's final salary until tax clearance is obtained.
Settlement of Employment Issues: The employer must settle all outstanding employment-related matters, including salary payments, accrued leave, and any bonuses.
Repatriation Costs: The employer is generally responsible for buying an air ticket and paying for all connecting transport costs to the international port of entry in the pass holder's home country, unless the pass holder agrees in writing to bear the cost.
Dependent Passes: When an Employment Pass is cancelled, all related passes issued to family members (e.g., Dependent's Pass, Long Term Visit Pass) will be automatically cancelled as well. They will also be issued an STVP to allow them to make arrangements to leave Singapore.
Personal Affairs: The pass holder should:
Settle all outstanding lease agreements with landlords.
Notify banks, insurance companies, and credit card providers.
Close accounts with phone and utility suppliers.
Return all work-related materials to the employer.
Arrange for the shipping of personal belongings if leaving permanently.
No Reinstatement: Once an EP is cancelled, it cannot be reinstated. A new application is required if the individual wishes to work in Singapore again.
Overstaying: It is crucial for the pass holder to ensure they have a valid legal stay throughout their time in Singapore. Overstaying is a criminal offense and can result in fines or being barred from future employment in Singapore.
It's highly recommended for both employers and employees to refer to the official Ministry of Manpower (MOM) website for the most accurate and up-to-date information and guidelines. If unsure, engaging a reputable employment agency or immigration consultant can help ensure a smooth and compliant cancellation process.
How Bestar can Help
Bestar can be incredibly helpful when it comes to the cancellation of an Employment Pass (EP) in Singapore, especially given the various regulations and potential complexities involved. We act as experienced guides and facilitators for both employers and employees.
Here's how we can help:
1. Expert Knowledge of MOM Regulations:
Up-to-date Information: The Ministry of Manpower (MOM) regulations for work passes can change. Bestar stays current with the latest policies, timelines, and requirements, ensuring the cancellation process is compliant.
Understanding Specific Scenarios: We can advise on the nuances of different cancellation scenarios (e.g., resignation, termination, retrenchment, changing jobs, leaving Singapore permanently) and the specific steps required for each.
2. Streamlined Process & Documentation:
Preparation of Documents: We can guide employers and employees on all the necessary documents for cancellation, ensuring nothing is missed. This includes helping with tax clearance (IR21) procedures, which is a crucial and often complex step.
Online Submission: While employers typically submit cancellations online, Bestar can assist with navigating the MyMOM Portal or EP eService, ensuring accurate data entry and timely submission.
Follow-up with MOM: If there are any queries or issues from MOM, Bestar can liaise directly with the ministry to resolve them efficiently.
3. Compliance and Risk Mitigation:
Avoiding Penalties: Incorrect or delayed cancellation can lead to fines or penalties for the employer. Bestar ensures compliance with the one-week cancellation deadline and other obligations, minimizing legal risks.
Tax Clearance Guidance: We can provide detailed guidance on the tax clearance process (IR21), ensuring all tax obligations are met before the employee's departure, which is vital for both parties.
Preventing Overstaying: We ensure that the employee understands the validity of any Short-Term Visit Pass (STVP) issued upon cancellation and the importance of departing Singapore before its expiry, thus preventing overstaying issues.
4. Advise on Related Passes:
Dependent Passes: We will advise that Dependent's Passes and Long-Term Visit Passes linked to the main EP will be automatically cancelled. We can guide the family on their options if they wish to remain in Singapore or need assistance with their departure.
New Pass Applications (if applicable): If the employee is staying in Singapore to join a new employer, Bestar can assist with the new EP application, ensuring a smooth transition and minimizing gaps in legal stay.
5. Time and Resource Saving:
Reduced Administrative Burden: For employers, particularly SMEs without dedicated HR/immigration teams, outsourcing the cancellation process to Bestar saves significant time and administrative effort.
Peace of Mind: Knowing that experienced professionals are handling the process provides peace of mind for both the employer and the departing employee, allowing them to focus on other priorities.
In summary: Bestar provides specialized knowledge, administrative support, and risk management for the EP cancellation process in Singapore. Our expertise helps ensure that the cancellation is handled efficiently, compliantly, and with minimal stress for all parties involved.
Comments