How to Continue Employing Staff in Singapore After Closing Your Entity

Companies with an overseas branch or subsidiary face some difficult decisions if they need to close down the entity at some point.  Among those is how to continue employing staff for ongoing operations or remote work. 

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With a local entity, the company was likely running payroll on their own, but that will no longer be possible once the entity winds up.

There are a few ways to handle this depending on how many employees are involved and the previous length of employment.  If you are closing an entity in Singapore this article will discuss your options and the potential consequences of each one.

How to Keep Staff Employed in Singapore Without an Entity

Before your Singapore entity closes you will want to have a plan for keeping staff employed, assuming that you still need their skills and experience.  An apparently easy solution is to hire them as independent contractors, who don’t need to be on payroll and would take care of all their own taxes and contributions. 

The problem with this is because they are former employees, they are used to receiving benefits and entitlements which may be important to them.  Also, they can easily bring a claim based on misclassification as a contractor, if you continue to treat them as employees by controlling their work schedule and methods.

Another option is to... read more

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Tim Burgess

Director, Shield GEO Services Ltd