Not necessary. All that has to be done is that HR ensures that they tick the box indicating you will consider an S pass if no longer eligible for an EP. It the other box is ticked, e.g., do not consider for an S pass if not eligible, then if you don't make it, you are up the creek without a paddle as you cannot go back and reapply for the S pass. So, it might behoove the OP make sure HR does do this BEFORE applying for the renewal, rather than leaving it to chance.
There are some employers who will NOT do this as it will cost even more from the employers point of view as they would then incur Foreign Worker Levies on the S Pass holder which means it could easily cost the employer an additional $390/mo in levies, provided that the employer even had sufficient quota for an additional S pass holder. (lots of employers, like myself, are currently in excess of our quotas and cannot even renew until we are back to zero. In my case, if I cannot hire sufficient locals to boost up my quota, I'm going to lose 5 more employees when their A passes come up for renewal. It's not going to be pretty. And with another reduction of quota coming up on 1 July!
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers