Dear HR Practitioners,

I would like to check if the employment contract end for one of our china worker, do we cancel the work permit and buy a ticket for he/she to return and reapply the work permit for he/she to start a new contract? Reason is employee wanted to return home for vacation, who should bear the flight tickets.

Denise

REPLY 1

If the employment contract is going to end and both the company and the staff is keen to renew the contract, company does not have to bear any air ticket costs. Further, it is not necessary to cancel the work permit for company can choose to renew the permit.
However, if the company is not intending to renew the contract, company is liable to pay for the repatriation costs (e.g. air ticket). For S Pass and Employment Pass Holders, if they give consent in writing, employers can have them bear the costs themselves.

Chris

REPLY 2

No need to cancel work permit, just buy the round trip air ticket for the worker to go back for vacation. You can online apply at CPF board website for Waiver of Foreign Worker Levy (Business) after the worker come back to Singapore. For us, our company paid for the air ticket but declare in the worker's IR8A the full amount of the air ticket price under Appendix 8A - 4. Others - a. Cost of home leave passage.

Jasmine

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