Legal Terms

Kickback: What are kickbacks


What are kickbacks?

Kickback refers to the illegal demand of payment from foreign employees as a condition for employment or to cover various employment-related expenses. This practice is strictly prohibited to protect the rights and well-being of foreign workers in Singapore. 

Examples of kickbacks include imposing the following costs on foreign employees as part of their employment:

  • Work pass application, issuance, renewal, or reinstatement
  • Security bond levy payment
  • Medical insurance
  • Medical examination fees
  • Compulsory training
  • Repatriation costs

Are there penalties for accepting kickbacks? 

Collecting kickbacks is considered a violation of the Employment of Foreign Manpower Act (EFMA). The Ministry of Manpower (MOM) enforces strict measures against individuals and businesses involved in such practices. 

Those found guilty can face severe consequences, including fines of up to S$30,000, imprisonment of up to 2 years, or both. Errant employers may be barred from applying for foreign employees as well. 

How to report kickbacks in Singapore? 

The following outlines the recommended steps for individuals to report kickbacks or seek assistance from MOM:

Step 1

Record the payment particulars such as the date, amount, and recipient. Gather supporting evidence such as documents, text message screenshots, photographs, or videos whenever feasible.

Step 2

  • Seek assistance from any Ministry of Manpower’s Assurance, Care and Engagement (ACE) officers present at the dormitory.
  • Consult the MOM through a Zoom session by visiting www.mom.gov.sg/make-appt-zoom.
  • Contact the MOM at (+65) 6438 5122.
  • Visit the MOM Services Centre in person at 1500 Bendemeer Road, Singapore 339946.

What are the protective measures in place for immigrants who report kickbacks?

The MOM has implemented several measures to encourage and support immigrants who report kickbacks. 

  • In cases where immigrants choose to report kickbacks and still wish to continue working in Singapore, the MOM facilitates a change of employment. This allows them to transition to new employers without disrupting their employment status. 
  • Affected migrant workers are referred to selected employment agencies that adhere to the commitment of not charging them any fees for job placement. This measure protects immigrants from financial exploitation and ensures they can secure employment without incurring additional costs.

The MOM also proactively educates first-time migrant workers about kickback offences and ways to seek help. Mandatory settling-in programmes provide these workers with essential information and resources to understand their rights, report incidents, and access appropriate support services.

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