[SUMMARIES]
Work Permit (WP) cancellation in Singapore ensures foreign workers’ employment ends legally and smoothly.
Employers must cancel the WP within seven days to stop levy charges, avoid fines, and secure the $5,000 Security Bond.
The process includes tax clearance, final salary settlement, repatriation, and issuing a Special Pass if needed.
Proper compliance protects employers from legal, financial, and reputational risks while finalizing the worker’s exit.
[/SUMMARIES]
Work Permit Cancellation ensures a smooth and compliant end to your foreign worker’s employment in Singapore. This 2026 guide covers everything employers need to know, including timelines, online procedures, Special Pass issuance, security bond refunds, and common pitfalls to avoid.
What is Work Permit (WP) Cancellation?
Work Permit (WP) cancellation is a mandatory administrative process through which an employer informs the Ministry of Manpower (MOM) that an employment relationship has ended. Under Singapore’s Employment of Foreign Manpower Act, employers are required to revoke a foreign worker’s work authorization when their contract expires, is terminated, or the worker resigns.
Cancelling a Work Permit is not just a formality—it is a legal obligation. Proper cancellation ensures:
- Cessation of Foreign Worker Levy (FWL): Daily levy charges stop immediately as of the cancellation date.
- Regulatory Compliance: Employers avoid fines, penalties, or losing the $5,000 Security Bond if the worker overstays.
- Repatriation Responsibility: It triggers the necessary steps to ensure the worker’s safe return to their home country, as required by MOM.
Not cancelling a Work Permit within the required timeline (usually 7 days) can lead to serious legal consequences, including forfeiture of the Security Bond and restrictions on hiring foreign workers in the future.
Critical Timeline – When Must You Cancel a Work Permit?
Adhering to the Ministry of Manpower (MOM) timeline is essential to maintain your company’s clean employment record and avoid unnecessary financial liabilities.
Mandatory Cancellation Deadlines (The 1-Week Rule)
- Employers must cancel a Work Permit within 1 week after the last day of notice.
- If the worker has already left Singapore permanently and will not return to work for you, the Work Permit must be cancelled within 1 week from the departure date.
When Does the Levy Billing Stop?
To avoid unnecessary costs, it’s important to know exactly when your obligation to pay the Foreign Worker Levy (FWL) ends:
- Levy Cessation: Your obligation to pay the Foreign Worker Levy (FWL) ends the day before the Work Permit is cancelled. Example: If you cancel the permit on January 25, levy charges will apply only until January 24.
- Avoid Overpayment: MOM does not automatically refund levy paid for missed cancellations. Timely formal cancellation is the only way to stop daily charges.
Pre-Cancellation Checklist for Employers (Must-Do)
To avoid legal disputes and ensure a smooth exit, employers must complete these critical steps before clicking “Cancel” on WP Online.
Tax Clearance (Form IR21) – For Eligible Workers
Tax clearance is the mandatory process of ensuring a foreign employee settles all tax liabilities before their departure from Singapore.
- Who Needs It: You must file Form IR21 for all non-Singaporean employees (including Work Permit holders) who are terminating their employment, starting an overseas posting, or leaving Singapore for more than three months.
- The Exemption: You are generally exempt from filing Form IR21 for Work Permit holders if their total annual income is below the taxable threshold (currently S$21,000) and other conditions are met. Always verify their residency status with IRAS to ensure compliance.
- Timeline & Withholding Salary: Submit Form IR21 at least 1 month before the worker’s last day of employment. Employers are legally allowed to withhold the employee’s final payment, including basic salary and bonuses, until tax clearance is confirmed.
Settle All Outstanding Salaries & Payments
MOM takes salary disputes seriously. Before cancellation:
- Final Pay: Clear all basic wages, overtime pay, and encashment of unused annual leave.
- Deadline: Ideally, all payments should be settled by the worker’s last day of work to ensure a clean tax clearance and cancellation process.
- Proof: Keep signed salary vouchers or bank transfer receipts as evidence
Repatriation Obligations (Return Air Ticket)
Employers are legally responsible for the worker’s return to their home country.
- Full Coverage: Purchase a return flight, including check-in luggage.
- Destination: Ticket should be to the nearest international airport in the worker’s home country (unless otherwise agreed in writing).
- No Cost-Sharing: The airfare cannot be deducted from the worker’s salary or security bond.
Clear Communication on Departure
Finalize logistics to avoid “missing worker” issues:
- Special Pass: Inform the worker they may receive a 14-day Special Pass to settle their affairs before departure.
- Card Disposal: Instruct the worker to surrender their physical Work Permit card. Under 2026 guidelines, most cards should be cut in half and disposed of after the digital cancellation is complete.
Step-by-Step Guide: How to Cancel a Work Permit Online
Cancelling a Work Permit doesn’t have to be complicated. Whether your worker is still with you or has already headed home, following these clear steps will ensure a smooth transition for both parties.
Quick Comparison: Work Permit Cancellation – Singapore
| Step / Feature | Worker Still in Singapore | Worker Already Left Singapore |
|---|---|---|
| Login | WP Online | WP Online |
| Cancellation | Select employee & follow prompts | Select “Worker has left Singapore” |
| Special Pass | Print & hand to worker (valid up to 14 days) | Not applicable |
| Departure | Worker presents Special Pass & passport at checkpoint | MOM verifies departure |
| Security Bond | Non-Malaysian: discharged ~1 week after departure if conditions met. Malaysian: not applicable | Non-Malaysian: discharged ~2 weeks after verification if conditions met. Malaysian: not applicable |
| Compliance | Worker must leave before Special Pass expires | Cancel within 7 days of departure |
Option 1: If Your Worker is Still in Singapore
- Step 1 – Quick Login: Access the WP Online
- Step 2 – Simple Cancellation: Select the employee you wish to off-board and follow the guided prompts. It’s a straightforward process that takes only a few minutes.
- Step 3 – Print the Special Pass: Once the cancellation is successful, the system will generate a Special Pass. Please print this out and hand it to the worker. This allows them to stay in Singapore legally (usually for 14 days) while preparing to fly home.
- Step 4 – Departure at the Checkpoint: The worker simply needs to present their Special Pass and passport to the officers at the airport or checkpoint.
- Step 5 – Security Bond Release: For non-Malaysian workers, the Security Bond is usually discharged about one week after departure, provided all cancellation conditions are met. Malaysian workers are exempt from the Security Bond requirement, so this step does not apply to them.
Option 2: If Your Worker Has Already Left Singapore
- Step 1 – Log in to WP Online
- Step 2 – Choose the Right Reason: From the menu, simply select “Worker has left Singapore”.
- Step 3 – The 7-Day Window: To stay fully compliant with MOM, make sure to submit this cancellation within 7 days of their departure date.
- Step 4 – Relax and Wait for the Refund: Once MOM verifies the departure with immigration records, your Security Bond will typically be discharged within 2 weeks.
Post-Cancellation Obligations – Bond & Card Return
Even after a Work Permit is cancelled, employers have certain obligations to complete. This ensures compliance with MOM and smooth finalisation of the employment relationship.
Returning the Physical Work Permit Card (Is It Still Required?)
- Physical card return: Once the Work Permit is cancelled online, the physical card should be collected from the worker.
- Disposal: For most cases under 2026 guidelines, the card should be cut in half and safely disposed of.
- Purpose: Returning and disposing of the card confirms the permit is no longer active and prevents misuse.
When Will the $5,000 Security Bond Be Discharged?
- Non-Malaysian workers: The security bond is generally refunded within 1–2 weeks after the worker departs Singapore, provided all conditions are met.
- Conditions for discharge:
- The worker has left Singapore legally.
- There are no outstanding levy payments, fines, or unresolved employment disputes.
Tip for Employers: Keep confirmation of Work Permit cancellation and any documentation related to bond refund for your records. This ensures you have proof of compliance in case of audits or inspections.
Consequences of Late or Improper Work Permit Cancellation
Failing to cancel a Work Permit (WP) on time or following incorrect procedures can result in serious financial, legal, and reputational consequences for employers.
Overstaying Fines & Legal Risks
- Daily fines: If the WP remains active after the employee has stopped working or left Singapore, the worker may be considered an overstayer, and the employer could be liable for daily fines and administrative penalties imposed by MOM.
- Legal action: Employers may face prosecution under the Employment of Foreign Manpower Act, especially if the delay leads to a breach of work pass conditions.
- Reputational impact: Non-compliance can leave a negative record with MOM, affecting future Work Permit or S Pass applications and increasing scrutiny.
Security Bond Forfeiture
- Bond risk: Late or improper cancellation breaches the conditions of the $5,000 Security Bond and may lead to its forfeiture.
- Conditions for forfeiture: MOM may withhold or forfeit the bond if there are unpaid levies, outstanding fines, or unresolved employment disputes at the time of cancellation.
- Timely compliance matters: Cancelling the WP correctly within the 7-day mandatory window ensures the bond is released promptly once all obligations are met.
Missing Worker
- Do NOT cancel WP immediately: If the worker is missing, cancelling through the usual process is not allowed.
- Report immediately: Employers must notify both the police and MOM about the missing worker.
- Security Bond freeze: MOM may temporarily freeze the Security Bond until the situation is resolved. This prevents employers from being penalized for the worker’s disappearance while protecting bond conditions.
Frequently Asked Questions
How Many Days Will It Take to Cancel a Work Permit?
The cancellation can be done by the employer or an employment agent. The process typically takes within 3 working days to be finalized.
How Long Can a Worker Stay in Singapore After Work Permit Cancellation?
The worker is typically issued a Special Pass valid for up to 14 days. This allows them to stay legally to settle personal matters and complete exit procedures.
Can Employers Cancel a Work Permit If the Worker Has Already Left Singapore?
Yes. Employers can cancel the Work Permit online via WP Online within 7 days of the worker’s departure. The security bond is usually refunded after MOM verifies the worker has left and all conditions are met.
Leave a Reply