FIVE employers are under investigation by the Ministry of Manpower (MOM) for falsely declaring the number of Singaporean workers they hired, in order to qualify for more foreign workers.

The probe was sparked by complaints of errant employers MOM received since a new rule was introduced last year, its spokesman told The Straits Times.

But he declined to give details of the cases, saying 'they are still under investigation'.

Employers who have difficulties recruiting workers turn to a variety of ways, including resorting to what the industry terms as 'ghost workers'.

To bump up the number of locals, errant employers would typically collude with retirees, odd-job labourers, friends or family members.

'They prefer family members as they are less likely to squeal if things go wrong,' said an employer who spoke on condition of anonymity.

Added another employer: 'Often, they put down their parents' names and pay them Central Provident Fund (CPF) contributions of, say, $500 because, after all, they have to give their parents money.'

The new rule which was introduced last year requires employers to make a declaration when applying for work permits for foreign workers.

It asks them to affirm that their companies' CPF accounts refer to 'contributions made to persons actively employed'' by them.

The Controller of Work Passes refers to these CPF accounts when working out the number of foreign workers a company is entitled to. So, by having 'ghost workers'' on their payroll, firms can apply for even more foreign workers.

For instance, for every local worker employed, the construction sector can hire seven foreign workers; the marine sector, five; manufacturing, roughly two; and services and landscaping, one.

But since January last year, the new rule has given MOM the legal clout to investigate companies accused of having 'ghost workers''. If found guilty, employers can be fined up to $15,000 and jailed up to a year, under the Employment of Foreign Manpower Act.

Also, MOM may revoke the work permits of their existing foreign workers and bar them from employing new ones.

The use of'ghost workers' is one way employers circumvent the quota and levies controlling the number of foreign workers employed here.

Another, exposed recently, involved agents offering up to $3,000 for every China worker bosses hired, to cover the worker's levy of up to $450 a month.

This prompted the ministry to impose new conditions in applications for work permits and employment agency licences that will make it clearer the practice is an offence.

As for employers using 'ghost workers', industry sources said they tend to be small firms hiring no more than 20 people, such as building sub-contractors and landscaping firms.

The jobs often involve hard physical labour carried out under a hot sun - work eschewed by Singaporeans, these employers claim. In addition, landscaping firms complain their foreign worker quota is too low - only one for each local worker.

Labour MP Josephine Teo scoffed at their complaints.

'They claim they cannot find Singaporeans. It is more likely the pay and work conditions are not competitive, or they hope to have a cost advantage over employers who play by the rules,' she told The Straits Times.

Although she believes there is only 'a small number of black sheep', she wants MOM to send a strong signal that it abhors such practices.

'When employers register ghost workers, it leads to suspicions among Singaporeans that controls are ineffective.

'Hence, these violators are not only breaking the law, but they are also being socially irresponsible,'' she said.

chinlian@sph.com.sg