Business immigration: mechanisms for cross-border employment

The UK

Most UK business immigration routes are reliant on a strong connection between an individual worker and a UK employer or host. This is most obvious in traditional sponsorship routes, but similar themes appear in temporary migration for visitors as well as routes involving no formal employer-employee relationship.

Visitors and short-term trips

Rules for business visitors are felt by many to be overly restrictive, although they do not necessarily compare unfavourably with many of the UK’s European neighbours. There are three core limitations on a business visitor:

• the duration of their visit;
• their activity in the UK; and
• any payment from a UK source.

The duration of visit

While the rules permit visits up to and including six months, the longer a business visitor remains in the UK – and the more often they visit – the less likely they are to be accepted as a genuine business visitor. Duration and frequency of travel can be an indicator of employment in the UK, which is not permitted for visitors, and a failure to maintain employment elsewhere.

Activity in the UK

While light duties including attending meetings and taking instructions are acceptable, the more detailed a visitor’s activity in the UK, the less likely it is to be accepted. Temporary fulfilment of a UK role is strictly prohibited for example, as is a visit with the primary purpose of remote working from the UK. While there are some express concessions relating to intra-corporate activities and the manufacture and supply of goods and services, these too have limitations that UK organisations can struggle to accommodate.

Payment from a UK source

It is generally not permitted for business visitors to receive payment for their UK activities beyond reimbursement for reasonable expenses.

Sponsorship and long-term placements

Where the business visitor rules are found not be inclusive of an individual’s travel plans, more formal options can be considered. The UK’s points-based system for business immigration is a sponsorship system.

Successful visa applicants score points by securing sponsorship from a licensed UK organisation, meeting key requirements relating to the skill level of their position and the confirmed salary they will be paid. Additional requirements can include mandatory English language testing and in some specialist areas exhaustion of the UK labour market is required before sponsorship can proceed, although this is not needed for most workers.

Sponsorship can be a challenging burden for a UK business. It is often costly in terms of both time and resources and introduces ongoing and extensive duties with which a sponsor must comply. The general principle of the sponsorship system is that organisations which receive the benefit of a migrant workforce must take responsibility for monitoring those workers, and therefore sponsorship is a serious undertaking for any business.

Since the end of the Brexit transition period in December 2020 there have been changes to the sponsored worker system. Recognising that there would be a need for greater flexibility to cater for a post-Brexit workforce, the system was opened up to more workers; lowing the skills and salary thresholds and removing – at least for now – the arbitrary cap on new sponsored workers. Skilled worker visa numbers have unsurprisingly sky-rocketed since this time: figures published in May 2023 show that work visas, including for dependants, had increased by 76% on the preceding year.  

That is not to say that sponsorship is always easy. There are limits on the roles that are deemed suitable, and salary requirements are set nationally and can prove problematic for smaller businesses outside of the south east of England. However, in general the sponsorship system is becoming more streamlined over time, and the standard routes for skilled workers and for temporary transfers between group entities are straightforward.

Self-employment and contractors

Unfortunately, while post-Brexit rule changes opened up immigration routes for sponsorship, they closed some options available to those outside of a traditional employee-employer relationship. It is now much harder for a businessperson to establish themselves in the UK independent of sponsorship, and even routes for those setting up a UK branch of an overseas business now require sponsorship when they previously did not.

New routes introduced to assist support for seconded teams or independent service suppliers have proved unpopular with UK businesses, leaving a large hole in the rules relating to those who wish to fulfil contracts in the UK, for example.

Administration and avoiding penalties

For all these reasons, the sponsorship system can be difficult for sponsors. Extremely high standards of compliance are expected of any business wanting to secure a sponsor licence but these duties go beyond those specific to a licence and include rules relating to health and safety, insurance, national minimum wage, taxation, and the prevention of illegal working. Even where a business does not hold a sponsor licence, it is essential that no person is employed unless they have the necessary right to work.

Where a business employs an individual who does not have the right to work, the business will be liable for a civil penalty, up to £20,000 per worker. Business can protect themselves by having procedures for right to work checking before employment begins, and where a compliant check is undertaken it can act as protection against any penalty or other enforcement. As the population of migrant workers in the UK increases, businesses of all types are well advised to be mindful of the status of all workers on their premises.

Written by Shara Pledger of Pinsent Masons.

Germany

Visa requirements

The legal framework dealing with entering and staying, temporarily or permanently, in Germany is mainly set out in the German Residence Act as well as in existing regulations. It is also regulated by European law. As a general rule, all foreigners require a visa for any entry – no matter for which purpose – into Germany. An exemption applies to EU nationals. According to European law, for EU nationals no visa is required for entering into any country of the EU.

For some non-EU nationals, the EU has also abolished the visa requirement for visits of up to 90 days in a 180-day period. This is the case for US citizens or United Arab Emirates citizens. Since Brexit, UK nationals are also generally treated as non-EU nationals. A list of these countries can be found on the website of the German Federal Foreign Office.

Nevertheless, for any entry and stay exceeding 90 days in a 180-day period, a visa is always required for non-EU nationals. The type of visa to apply for depends on the reason for the applicant’s visit or stay.

Short stay visa

Third country nationals for whom the EU has not abolished the visa requirement for stays of up to 90 days in a 180-day period can apply for the so called “Schengen visa” for either transit through the Schengen area or for any short term stay in the Schengen area not exceeding 90 days in any 180-day period based on the European regulation (EC) No. 810/2009 which forms the statutory basis under European law in all Schengen states for issuing such visa.

To receive a Schengen visa, the competent authority must ensure that:

• the purpose of the trip to Germany is plausible and comprehensible;
• the applicant is in a position to finance their living and travel costs from their own funds or income. A third person, such as the employer, can also cover all costs associated with the trip, if an applicant is unable to prove that they are able to finance the trip;
• the applicant is prepared to leave the Schengen area before the visa expires;
• documentary evidence is provided of travel health insurance with a minimum coverage of €30,000 valid for the entire Schengen area.

Long-term stays and working in Germany

In addition to a valid visa – if required – all foreigners principally require a residence and work permit which allows them to stay and work in Germany. Exemptions only apply to EU nationals, Swiss nationals and nationals of the European Economic Area who can stay and take up gainful employment or economic activities as self-employed individuals in Germany without any further restrictions.

Under the Schengen visa, the individual is principally only allowed to attend meetings, seminars or monitor the implementation of existing contracts during the business trip. The performance of any work is however prohibited.

In Germany, there are various types of residence and work permits that may be granted for various purposes including, but not limited to, employment and self-employment. Each type of residence and work permit is subject to different conditions so that it is inevitable to have this reviewed on a case-by-case basis.

Residence and work permit for employment purposes

For the purpose of taking up gainful employment, a residence and work permit can be obtained either for a local employment – a job offer may be sufficient – or for a secondment where the employee stays on the home country employment contract and payroll. It is important to review on a case-by-case basis what type of residence and work permit is required to bring that individual to Germany.

Before issuing a residence and work permit allowing the applicant to stay and work in Germany, the competent authority might need to consult the competent Federal Employment Agency. In some cases, prior approval by the Federal Employment Agency is even required before the permit can be issued. A permit application will usually be rejected for unskilled or low-skilled workers intending to take up gainful employment in Germany.

Apart from the standard residence and work permit that can be obtained for skilled workers who have a vocational or academic background, two specific types of residence and work permit may be of particular interest for employers and foreign individuals: the EU ‘Blue Card’ and the intra-company transfer (ICT) card.

As of 1 August 2012, skilled professionals from abroad may apply for the EU Blue Card, a residence permit including permission to work issued by an EU member state in accordance with EU guidelines on highly qualified workers from abroad. Highly qualified workers from abroad generally have easier access to the labour market if they can provide a binding local job offer with a gross annual salary exceeding certain thresholds. To be eligible for an EU Blue Card, the employment must correspond to the individual’s qualification.

The EU Blue Card is normally issued for a maximum of four years, but can be extended if the preconditions continue to apply. If the duration of the employment contract is less than four years, the EU Blue Card will be issued for the duration of the employment contract plus three months.

Since 2017, the so-called ICT Card may be an option for companies who have their business operations outside the EU and would like to temporarily transfer employees from there to a German branch. The ICT card enables managers, specialists or trainees to work in a German branch for a limited period of time. The following additional aspects need to be considered:

• the manager or specialist needs to have worked for the company abroad for a period of six consecutive months prior to the planned transfer and must continue to be employed by the company abroad for the entire time of the transfer;
• the duration of the intra-corporate transfer needs to be 90 days or more;
• a manager or specialist must possess a valid employment contract and, if necessary, a letter of secondment;
• it must be clear that the employee will return to the company outside the EU after the transfer period ends; and
• applicants must prove they possess the professional qualifications required for the position in Germany.

If all these requirements are met, an ICT Card can be issued for the time of the transfer or for a maximum of three years. 

Foreign trainees can also be granted an ICT Card, provided they work in the German branch office for a period of more than 90 days, are employed as a trainee, possess an academic degree and fulfil the requirements mentioned above. If all these requirements are met, an ICT Card can be issued for the time of the transfer or for a maximum of one year.

Residence and work permit for self-employment purposes

Self-employed individuals such as freelancers, entrepreneurs, investors and any other independent contractors from third countries who would like to take up an economic activity in Germany must also comply with German immigration laws and apply for a respective residence and work permit.

To obtain a German residence permit as self-employed it is key to show that there is an economic interest or a regional need for the business; the activity is expected to have a positive impact on the German economy; and that funding has been secured.

In 2012, German immigration law was changed with the effect that applicants no longer have to demonstrate a minimum investment amount or the creation of a certain number of jobs. Before 1 August 2012, the first two preconditions were satisfied if the applicant’s economic activity led to the investment of at least €250,000 and created five jobs. This has been eliminated in the current version of the German immigration law.

Nevertheless, German authorities will usually consider the following to determine whether the business in question will be of economic or regional interest:

• sustainability of the business concept;
• entrepreneurial experience and qualifications;
• financial investment;
• the company’s impact on employment and vocational training;
• contribution to the national or regional economy, innovation, and research; and
• competition with established businesses.

A residence and work permit will only be issued to an applicant over 45 years of age if adequate old-age pension provisions exist.

Even if all of the aforementioned prerequisites are met, the permit will only be granted for a limited period of time – initially for a maximum of three years. A settlement permit can be issued after expiry of three years if the foreign individual has successfully carried out the planned economic activity and their living costs, including those of any dependents, are covered by sufficient income.

Application procedure

Generally, any visa as well as residence and work permit must be applied for and issued to the applicant before entering Germany. A few exemptions apply, such as for US citizens who can apply for a residence and work permit after entering Germany. All applicants are obliged to submit their application in person at the competent authority, together with any further necessary documents.

Embassies and consulates general abroad are responsible for issuing any visas or residence and work permits. Responsibility depends on the area in which the applicant has their ordinary residence or domicile. In Germany, the immigration authority of the city where the applicant intends to stay and work is competent for issuing the respective visa and permit. The application has to be submitted to the competent authorities in Germany within 90 days of entering Germany for the first time.

Note that there is no legal entitlement to receive any visa or permit even if all requirements are met; other than in the case of the EU Blue Card where there is a legal entitlement if the requirements are met. In all other cases, the competent authority principally decides on a case-by-case basis within its reasonable discretion whether or not to grant the application.

If the application is rejected by the competent authority, the applicant will be informed of the main reasons for the rejection and is entitled to appeal.

Administrative and criminal penalties

If a foreign national performs work without a valid residence and work permit, or if an employer lets a foreign national perform work without a valid residence and work permit, fines of up to €500,000 may apply. In addition, under certain conditions, the authorities can deny the grant or the extension of a residence and work permit or even exclude the company from subsidies. In individual cases the person concerned can also be expelled from Germany and banned from re-entry.

Co-written by Carolin Kaiser and Gabriele Hofmann of Pinsent Masons.

Spain

Visa requirements

Entry and stay of foreigners in Spain is regulated by Organic Law 4/2000 and Law 14/2013 on support for entrepreneurs, as well as European regulations.

EU citizens and citizens of Iceland, Liechtenstein, Norway and Switzerland can enter Spain with their national identity card or with a valid passport. Family members who are not EU nationals or citizens of Iceland, Liechtenstein, Norway, or Switzerland can enter with a valid passport. Depending on nationality, family members might need an entry visa unless they have a valid residence card as the relative of a EU citizen.

As above, the EU has abolished the visa requirement for citizens from some countries who enter to for up to 90 days in any 180-day period. The nationalities requiring a visa are listed in Annex I of Regulation (EU) 2018/1806.

Non-EU nationals always require a visa for any entry and stay exceeding 90 days in a 180-day period. The type of visa to apply for depends on the reason for the applicant’s stay.

Short stay visa

This visa allows the applicant to stay in the Schengen area for up to 90 days in any 180-day period for non-gainful activities such as studies, training placements, volunteer activities, visiting family, medical treatment. It also allows transit through the territory and airports.

Border authorities can refuse entry if the visa holder does not provide proof of the purpose and specifics of the trip, or if any of the other entry requirements are not met:

• entry via an authorised border-crossing point;

• presentation of proof of identity and a valid travel document;

• presentation of the corresponding visa if required, according to nationality;

• provision of evidence of meeting the conditions for the proposed stay;

• provision of evidence of possessing sufficient financial resources; and

• evidence that they are not subject to a ban on entering Spain.

Long-term stays and working in Spain

Foreigners require a residence and work authorisation that allow them to stay and work in Spain. Exemptions only apply to EU nationals, Swiss nationals, and nationals of the European Economic Area. Under the short-term visa, the individual is principally only allowed to attend meetings, seminars or monitor the implementation of existing contracts during the business trip. The performance of any work is, however, prohibited.

In Spain, there are various types of residence and work permits, established and regulated under two national laws. Each type of residence and work permit is subject to different conditions, so the correct approach should be reviewed on a case-by-case basis.

Residence and work permit for employment purposes

This is an authorisation for temporary residence and work as an employee requested by an employer or entrepreneur for the hiring of a worker for a period of more than 90 days and less than five years.

Before issuing a residence and work permit allowing the applicant to stay and work in Spain, the competent authority may need to consult the National Employment Agency (SEPE) to confirm that there are no Spanish nationals that could fulfill the requirements of the job. For the initial granting of the authorisation for residence and work as an employed person, it will be considered that the national employment situation allows the hiring of the foreign worker.

However, the national employment situation will not be considered when the employment contract is for:

• reuniting family members of working age, or the spouse or child of a foreign resident in Spain with a renewed authorisation, as well as the child of a nationalised Spaniard or of other EU or EEA citizen, provided that the latter have been legally resident in Spain for at least one year and the child does not fall under the EU free movement regime;
• holders of a previous work authorisation seeking its renewal;
• workers required for the assembly or renovation of a production facility or equipment;
• those who have enjoyed refugee status since the cessation of the application of the 1951 Geneva Convention;
• those who have been recognised as stateless and those who have lost their stateless status in the year following the termination of that status;
• foreigners who have dependent ascendants or descendants of Spanish nationality;
• foreigners born and resident in Spain;
• children or grandchildren of Spanish nationals;
• foreign minors of working age with a residence permit who are under the guardianship of the competent entity for the protection of minors, for those activities that favour their social integration, and once the impossibility of returning to their family or country of origin has been established;
• foreigners who obtain a residence permit for exceptional circumstances in the cases to be determined, and in any case when they are victims of gender-based violence or human trafficking;
• foreign nationals who have held a work permit for seasonal activities for two calendar years and have returned to their country of origin;
• foreigners who have renounced their residence and work authorisation by virtue of a voluntary return programme;
• foreigners who are to fill positions of trust and management positions in companies;
• highly qualified professionals, including technicians and scientists hired by public entities, universities or research, development, and innovation centres dependent on companies, without prejudice to the application of the specific authorisation regime applicable;
• workers on the staff of a company or group of companies in another country who intend to work for the same company or group in Spain;
• artists of recognised prestige;
• nationals of Chile and Peru; and
• non-EU and EEA nationals who are enrolled on Spanish vessels by virtue of international maritime fishing agreements.

It will be considered that the national employment situation allows for recruitment when the occupation to be performed by the foreigner is classified as difficult to cover, or when the employer accredits the difficulty of filling the vacant jobs with workers already incorporated in the domestic labour market through the certificate issued by the competent employment service.

Highly-skilled professionals

Highly qualified foreign workers can be granted temporary residence to carry out work activity that requires a higher education qualification to perform. In some cases, officials are willing to consider a minimum of five years of relevant professional experience as equivalent to a higher education qualification.

A higher education qualification shall be understood as a qualification derived from a higher education course of at least three years' duration and which provides the level of qualification necessary to exercise a profession requiring a high level of training or to enter an advanced research programme. The initial residence and work permit for highly qualified professionals shall be valid for one year.

Residence and work permit for self-employment purposes

Self-employed individuals such as freelancers, entrepreneurs, investors and any other independent contractors from third countries who would like to take up an economic activity in Spain must also comply with Spanish immigration laws and apply for a respective residence and work permit.

To obtain a Spanish residence permit, a self-employed person must be able to show that they have the professional qualification needed or enough professional experience to perform the professional activity and proof that the investment foreseen for the implementation of the project is sufficient and the impact, if any, on job creation.

Even if all of these prerequisites are met, this residence and work permit will only be granted for a limited period of time. Initially it will be granted for a maximum of one year and shall be limited to a geographical area of the autonomous community and to a sector of activity.

Support for entrepreneurs and their internationalization

Certain work permits, for which national employment status is not considered, make it easier to obtain authorisations. These permits are processed online and usually receive a response within 10 to 20 working days.  If an applicant does not receive a response within this timeframe,  they will be understood to have been approved by ‘positive silence’.

Investors

A foreigner over 18 years of age who has made a significant investment in Spain can apply for residence authorisation as an investor if the investment meets the minimum amounts required.

For investment in financial assets, this means:

• €2 million in public debt;
• €1m in shares or equity investments in companies with Spanish capital;
• €1m in investment funds, closed-end investment funds or venture capital funds incorporated in Spain; or
• €1m in bank deposits in Spanish financial institutions.

Investment in real estate must total at least €500,000. There is no minimum amount for investment in a business project in Spain. Instead, the impact of that investment is assessed by reference to the number of jobs created; the socio-economic impact on the geographical area where it will be developed; and any relevant contribution to scientific or technological innovation.

Entrepreneurs

Entrepreneurs are defined as foreign citizens over 18 years of age who intend to carry out entrepreneurial and business activity of an innovative nature that is of special economic interest for Spain. When they apply to enter Spain, entrepreneurs must intend to start, develop, or manage an entrepreneurial economic activity in the country. There are no minimum investment or job creation requirements.

An entrepreneurial activity in this context is one that is innovative or of special economic interest to Spain and has a favourable report issued by the European Union Agency for Cybersecurity (ENISA), which will assess:

• the professional profile of the applicant and their involvement in the project. In the event that there are several partners, the participation of each of them will be assessed, both those applying for a visa or authorisation and those who do not require it;
• the business plan including a description of the project, the product or service to be developed, and its financing, including the investment required and possible sources of financing; and
• the elements that generate added value for the Spanish economy, innovation, or investment opportunities.

Highly qualified professionals

Foreign professionals with a job offer in Spain for the development of an employment or professional relationship in a managerial position or activity for which a higher education qualification is required or, exceptionally, a minimum of three years of professional experience that can be considered equivalent to such qualification, related to the activity for the performance of which the authorisation is granted.

Inter-company transfers

Foreigners who temporarily move to Spain within the framework of an employment, professional or vocational training relationship, from a foreign company to a company or group of companies established in Spain. There are two options:

• ICT-EU intra-corporate transfer authorisation for managers, specialists and trainees moving within the same company or group of companies;
• national intra-corporate transfer authorisation for other cases, for example, the transfer of workers for the execution of a contract (CSS) between a Spanish and a foreign company or the transfer of workers for a professional relationship (IPs).

International teleworkers

A new “telework visa” or “digital nomad” immigration route was approved recently. This route has been created for third-country nationals who travel to Spain to carry out an employment or professional activity at a distance for a company located outside of the country, through the exclusive use of computer, telematic and telecommunication means and systems.

When an individual is working from Spain, social security registration is compulsory. The company must first register with the national social security scheme in order to be able to register the teleworker in Spain. Self-employed workers must register with the self-employed workers' scheme (RETA).

The social security registration requirement can only be replaced by importing the social security entitlement from the country of origin, provided that there is an international social security agreement between Spain and that country, and the social security administration of origin issues a document based on this agreement for teleworkers that provides temporary coverage in Spain. Only some of the countries with such an agreement in place with Spain will issue a certificate of coverage for teleworkers.

If the company has a branch in Spain, the workers would not be considered a teleworker but rather an ICT, and would be governed by this regime and its specific requirements.

Administrative and criminal penalties

If a foreign national performs work in Spain without a valid residence and work permit or if an employer lets a foreign national perform work without a valid residence and work permit, fines of up to €250,000 can apply. In addition, under certain conditions, the authorities can deny the grant or the extension of a residence and work permit or even exclude the company from subsidies. In individual cases the person concerned can also be expelled from Spain and banned from re-entry.

Written by Beatriz Moriones of Pinsent Masons.

Singapore

Visa requirements

A Singapore entry visa is not an immigration pass. It is a pre-entry permission for the holder of a valid visa to travel to, and seek entry, into Singapore. The grant of an immigration pass will be determined by the Immigration & Checkpoints Authority (ICA) officers at the point of entry. In Singapore, visa requirements are regulated by the ICA and the Ministry of Manpower (MOM).

However, not all foreigners require a visa for entry into Singapore. The ICA has specified a list of countries or situations which require a valid Singapore entry visa for entry, and this list is available on their website. A visa is also needed if the individual is travelling on:

• a refugee travel document issued by a Middle East country. This travel document is subject to assessment of recognition for entry into Singapore;
• an alien's passport. This travel document is subject to assessment of recognition for entry into Singapore;
• a Palestinian Authority passport;
• a temporary passport issued by the United Arab Emirates;
• a document of identity issued by Hong Kong Special Administrative Region;
• a travel permit issued by Macao Special Administrative Region;

Additionally, nationals of some jurisdictions may be eligible for the Visa-Free Transit Facility (VFTF) for stays of less than 96 hours.

However, all foreign visitors must ensure that they meet or possess entry requirements as stated by the ICA. Travelers seeking to enter Singapore must comply with both the Public Health Requirements as well as the Entry Requirements.

The Public Health Requirements include an international certification of vaccination for yellow fever, if the traveler has visited any country at risk of yellow fever transmission in the past six days before arrival in Singapore. General Entry Requirements include passport validity of six months, completion of the SG Arrival Card, and security and immigration processes on arrival. 

Short-term stays

For visitors who are eligible for entry and short-term stay in Singapore as a tourist, for social visit, or medical treatment, a short-term visit pass (STVP), generally in the form of an electronic visit pass or e-Pass, is issued at the point of entry. Visitors may use the visit pass validity tool or the e-Pass enquiry portal to check the validity of their STVP.

The STVP can be extended online, subject to the following conditions:

• if the individual is subject to visa requirements or is seeking an extension of up to 89 days from their date of entry. They will need a local sponsor who is at least 21 years old and has a SingPass Account;
• they must apply for the Visit Pass Extension at least three working days before their current Visit Pass expires;
• after their visit to Singapore ends, they do not intend to return within the next five days.

Visitors issued with a STVP cannot engage in any form of employment, business, profession, or occupation in Singapore during the validity of the STVP, unless they hold a valid work pass issued under the 1990 Employment of Foreign Manpower Act or are engaging in Work Pass Exempt Activities.

Long-term stays and working in Singapore

Under the STVP, a foreigner can only stay as a tourist, for a social visit, or for medical treatment. Although foreigners can extend their STVP, they are restricted from residing long-term or working in Singapore. To stay and work in Singapore, all foreigners require a residence or work pass, depending on their situation.

There are various kinds of residence and work passes that can be granted for employment or self-employment, and these are subject to different conditions and are reviewed on a case-by-case basis. However, there are exemptions for this, and travelers can work on a visit pass under certain conditions.

Notably, certain work passes have a foreign worker levy or quotas to be met. This depends on the type of work pass.

Residence and work passes for employment purposes

The type of residence and work pass applied for depends greatly on the individual’s unique situation. For employment purposes, it can be categorised in three main areas: professionals, skilled and semi-skilled workers, or trainees and students.

The most common pass is the Employment Pass (EP) which allows foreign professionals, managers, and executives to work in Singapore. Candidates need to earn at least S$5,000 a month. Employers must also demonstrate that they have fairly considered all jobseekers. The duration of the pass is up to two years for first-time candidates and up to three years for renewals, with experienced tech professionals with skills in shortage possibly eligible for a longer five-year duration pass. This pass does not require any foreign worker levy or quota, and family members of an EP holder are eligible to apply for passes.

From 1 September 2023, there will be changes progressively made to the EP which requires candidates to pass a two-stage eligibility framework.

Outside of the EP, work passes for professionals include the EntrePass for eligible entrepreneurs, Personalized Employment Pass (PEP) for eligible existing EP holders, and the Overseas Networks & Expertise Pass for top talent in specified industries. For skilled and semi-skilled workers, the passes available are the S Pass and Work Permits for migrant workers, domestic workers, confinement nannies and performing artists. For trainees and students, the passes available are the Training Employment Pass, the Work Holiday Pass, and the Training Work Permit.

Residence and work passes for self-employment purposes

There are currently no special work passes or permits for foreigners who would like to freelance in Singapore. The only exception is the EntrePass, which allows eligible foreign entrepreneurs to start and operate a business in Singapore that is venture-backed or possesses innovative technologies.

The EntrePass has no stipulated minimum salary, and its duration is one year for a new pass and the first renewal and two years for subsequent renewals. This pass does not require any foreign worker levy or quota, and family members of an EntrePass holder are eligible to apply for passes.

The EntrePass is open to all nationalities/citizens, and candidates can apply if they:

• have started, or intend to start, a private limited company registered with Accounting and Corporate Regulatory Authority (ACRA) that is venture-backed or owns innovative technologies; and
• meet any of the stipulated innovative criteria as an entrepreneur, innovator or investor listed below. While they do not need to meet all of the criteria for each respective profile, having more qualifications will help their application.         

Several businesses are exempt from applying for an EntrePass, including coffee shops, bars, employment agencies, and massage parlours.

Passes for family members

Under certain conditions, family members of foreigners employed in Singapore under specific work passes can apply for residence. There are various eligibility criteria for each of these passes, and the authorities have ultimate discretion on whether or not to grant a pass.

These passes include:

• Dependent’s Pass (DP) – for spouses and children of eligible EP or S Pass Holders.
• Long-Term Visit Pass (LTVP) – For parents, common-law spouses, step-children or handicapped children of eligible EP or S Pass holders.
• Pre-Approved Letter of Consent (PLOC) – For eligible spouses or children of Singapore citizens or Permanent Residents holding an LTVP/LTVP+ issued by ICA. The holder is pre-approved to work in Singapore. They can only apply for a PLOC when applying for, or renewing, the LTVP/LTVP+.
• Letter of Consent (LOC) for ICA-issued LTVP holders – For eligible spouses or children of Singapore citizens or PRs holding an LTVP/LTVP+ issued by ICA. The LOC allows the holder to work in Singapore. The employer must apply for the LOC.
• Letter of Consent for DP holders who are business owners – For eligible DP holders who wish to operate a business.

Exemptions for working while on a visit pass

Some individuals on a visit pass may apply for an exemption to work in Singapore. These passes include:

• Miscellaneous Work Pass – For foreign speakers, religious workers and journalists taking on a short-term work assignment of up to 60 days in Singapore.
• Work Pass Exempt Activities – For those performing eligible short-term activities without a work pass; and after notifying MOM of their activities.
• Work pass exemption for foreign students – For foreign students in full-time approved schools or institutions in Singapore.
• Work passes for holders of LTVPs issued by ICA – For foreigners married to a Singaporean or a PR, or parents accompanying a child who is studying in Singapore.

Administrative and criminal penalties

The Employment of Foreign Manpower Act (EFMA) regulates the employment of foreign employees and protects their well-being. The penalties for common offences under the EFMA include fines up to S$30,000 or imprisonment terms, depending on the offence.

Written by Mayumi Soh of Pinsent Masons.