New Requirement for Employment Pass Holders Seeking Appointment as Director of Related Company
November 15, 2016
The Ministry of Manpower (MOM) now requires that an employer seeking to appoint an Employment Pass (EP) holder currently sponsored by a company in the same corporate group to their board of directors obtain a Letter of Consent (LOC) before the appointment. The LOC must be renewed with each EP renewal.
To qualify for the LOC, the company seeking to appoint the EP holder to its board must prove the following:
- That the company is a parent, subsidiary, shareholder, or otherwise related to the EP holder’s current employer; and
- That the EP holder will take up secondary employment as a director for purposes related to his or her primary employment.
Retroactive Application
Employers of a board member who already holds an EP sponsored by a related company must submit an LOC application to the Ministry of Manpower and must renew the LOC with each EP renewal.
What This Means for Employers
Employers should immediately contact their immigration professional if they are planning to appoint an EP holder currently sponsored by a related company to their board of directors or if one of their EP holders is on the board of another company and does not yet have an LOC.
Fragomen can assist employers to obtain the required LOC, which will require a fee, to ensure compliance for their affected employees.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
