SINGAPORE – New EOR Regulations: key changes for hiring talents as a foreign company

In recent years, Employer of Record (EOR) services have become a popular choice for international companies looking to hire staff in Singapore. EORs act as third-party organizations that officially employ workers, handling essential tasks like payroll, taxes, and work visa sponsorship. This allows businesses to hire employees legally without the costs and complexities of setting up a local entity.

In July 2024, the MOM announced that EORs in Singapore can no longer apply for work passes for foreigners employed by overseas companies. For those seeking long-term employment in Singapore, hiring under a regular work pass is now mandatory. This change means that companies relying on EORs must quickly consider alternative solutions for managing their international talent.

So, what options do companies have? Here are a few viable alternatives:

1. Setting Up a Local Entity with Orbis Alliance’s Support: Establishing your own business in Singapore allows you to directly hire employees, oversee operations, and ensure compliance with local regulations. This setup provides greater control over your workforce and business strategies, enabling you to tailor your operations to meet local market demands. Additionally, having a local entity can enhance your company’s credibility and facilitate better relationships with clients and partners in the region.
2. Establishing a Representative Office (RO): An RO enables foreign companies to conduct market research and pursue business development activities, although it cannot be used for profit generation.
3. Applying for the Overseas Networks & Expertise Pass: This pass allows high earners and achievers, who earn monthly at last S$30,000 by the same employer or have earned its equivalent in foreign currency, for the 12 consecutive months leading up to the date of application, to reside in Singapore without needing a job offer beforehand, making it an attractive option for skilled professionals.
4. Relocating Your Talent to a New Market: If setting up a business in Singapore isn’t feasible, we can explore the relocation opportunities of your international talent to a more business-friendly environment, leveraging our operations across various Southeast Asian countries.

Foreign companies utilizing EORs to hire international employees in Singapore should urgently reassess their current practices and explore these alternative arrangements. With the right support and strategies, navigating these changes can lead to new opportunities for your business in the region.

For assistance or more information on this matter, please feel free to contact us by email via contact@orbis-alliance.com