On February 18, 2014, the Ministry of Manpower ("MOM") charged 22 foreign employees from India for providing false salary information to obtain work passes. The MOM is currently investigating another 230 employees and 75 employers, and will take separate action against any employer and/or employment agent found to be involved in such fraud.

These prosecutions will have a significant impact on organizations which use such fraudulent means to employ foreign employees on Employment Passes ("EP") and S Passes ("SP").

The key point to highlight is that employers should not assist in their employees’ fraudulent attempts to obtain EPs and SPs by falsely inflating their salary in the declaration to the MOM. In the event an employer has been complicit in such fraud, we highly recommend that the employer cease and desist such activities immediately and start making preparations to make a voluntary disclosure to the MOM and at the same time plead for leniency.