What Is EFMA (In Simple Terms)?
The Employment of Foreign Manpower Act (EFMA) is the law that controls:
- Who you can hire
- How migrant workers can be employed
- What employers must not do
It applies to all construction companies hiring Work Permit holders (excluding domestic workers).
1. Letting Workers Start Work Without a Valid Work Permit
❌ Common Mistake
- Worker starts work while “waiting for approval”
- Permit expired but worker continues working
- Worker returns from overseas and resumes work without activation
⚠ Why This Is Serious
Under EFMA, a foreign worker must have a valid Work Permit before starting work.
✅ What SME Employers Should Do
- Always check permit status in WP Online
- Track expiry dates and renew early
2. Using Workers for the Wrong Job or Site
❌ Common Mistake
- Construction worker asked to do cleaning or warehouse work
- Worker sent to a different company or project site
- “Helping another company” informally
⚠ Why This Is Illegal
Work Permit holders can only work in the approved job and sector.
✅ Best Practice
- Match actual work with approved job role
- Apply for a new permit if job scope changes
3. Wrong or False Information Submitted to MOM
❌ Common Mistake
- Inflating local staff numbers to get more quota
- Declaring salary higher than what is paid
- Incorrect company or site information
⚠ Risk
Giving false information to MOM is an EFMA offence, even if unintentional.
✅ Best Practice
- Keep payroll, CPF, and headcount records accurate
- Double-check all MOM submissions
4. Salary Deductions & Charging Workers Fees
❌ Common Mistake
- Deducting agent fees from worker salary
- Asking workers to “refund” recruitment costs
- Sharing commission with overseas agents
⚠ EFMA Rule
Employers must not receive money or benefits related to hiring a migrant worker.
✅ Best Practice
- Employer pays recruitment costs
- Only legal deductions allowed (e.g. accommodation if permitted)
5. Poor or Undeclared Worker Accommodation
❌ Common Mistake
- Address not updated in MOM system
- Overcrowded or unauthorized housing
- Subletting without approval
⚠ Risk
Accommodation breaches can lead to permit cancellation and enforcement action.
✅ Best Practice
- Use approved housing
- Update address changes immediately
6. No or Expired Medical Insurance
❌ Common Mistake
- Insurance expired
- Coverage below MOM minimum
- No Primary Care Plan (if required)
⚠ Risk
Employer becomes fully liable for medical costs and penalties.
✅ Best Practice
- Track insurance expiry dates
- Ensure policy meets MOM requirements
7. Poor Record-Keeping During MOM Inspections
❌ Common Mistake
- Cannot produce pay slips or contracts
- Missing Work Permit copies
- No safety training records
⚠ Reality
MOM inspections are common in construction sites.
✅ Best Practice
Keep ready:
- Work Permit copies
- Employment contracts
- Pay slips
- Accommodation records
- Safety certificates
8. Safety Training Not Completed (Construction Only)
❌ Common Mistake
- Worker starts work without CSOC
- Safety certificate expired
- No retraining scheduled
⚠ Risk
Work Permit may be revoked.
✅ Best Practice
- Arrange safety course immediately after arrival
- Track renewal timelines
9. Not Repatriating Workers Properly
❌ Common Mistake
- Delayed repatriation after permit cancellation
- Worker overstays due to poor planning
⚠ Risk
- Security bond forfeiture
- Future hiring restrictions
✅ Best Practice
- Plan repatriation early
- Keep proof of arrangements
✅ Key Takeaway for SME Construction Contractors
EFMA compliance does not require complex systems — just basic discipline and proper checks.
A compliant SME employer will:
✔ Hire only with valid Work Permits
✔ Deploy workers legally
✔ Pay salaries correctly
✔ Provide proper housing, insurance, and safety training
✔ Keep simple but accurate records
📌 Final Tip
Many EFMA violations happen not due to bad intent, but due to lack of awareness.
Understanding these basics can save your company from costly penalties and hiring bans