Understanding Part 10A of the COTMA

30 July 2021, Friday – In view of the increased foreign manpower cost due to foreign manpower shortages caused by the COVID-19 pandemic, an additional legislative relief under Part 10A of the COVID-19 (Temporary Measures) Act 2020 (“COTMA”) is provided to ensure that all parties along the value chain step up to co-share the increased costs.

To help our members better understand Part 10A of the COTMA, ASPRI organised a webinar which covered its purpose and how it helps to defray manpower costs. The webinar was led Mr David Shanmugam, Counsel of Netto & Magin LLC. To view the webinar slides, please click here.

In the context of Part 10 of the COTMA, “foreign manpower salary costs” refers to the remuneration – including bonuses, allowances, and overtime payments – payable to individuals who are neither citizens or permanent residents of Singapore holding a work permit. This excludes any quarantine, insurance or miscellaneous test costs.

Contract parties are to negotiate and adjust contract sums to take into account of increased foreign manpower salary costs incurred. If the negotiation is successful, there is no need to apply for this relief and parties may proceed to adjust contract sum as negotiated.

However, if the negotiation is unsuccessful, the contractor can seek determination from an Assessor. The contractor must show documentation of reasonable attempts of negotiation. Examples of such negotiation could include meeting minutes, correspondence, and recordings of such attempts. The Assessor will then conduct the necessary checks for eligibility.

Please click here to view the negotiation process in an infographic format. Further details of the relief, together with the subsidiary legislation, will be announced in the near future. For further clarifications or enquiries, you may wish to email Mr Shanmugam at shanugam@yahoo.com.sg.

The Association would like to once again thank our members who attended today’s webinar and we look forward to seeing everyone in future events. To re-watch the webinar, please click here.