Everything To Know About The Singapore Employment Act

In this article, we’ll delve into the Singapore Employment Act and everything you need to know about it. From understanding its provisions and rights for employees to learning about the obligations and responsibilities of employers, we’ll cover it all.

We’ll also discuss employment disputes and mediation, as well as the recent amendments and updates to the Employment Act. Let's get started!

What Is the Employment Act?

The Employment Act is a crucial piece of legislation in Singapore that provides a framework for the employment relationship between employers and employees. It aims to establish fair and progressive employment practices and safeguards the rights of employees. This act covers a wide range of important matters, such as working hours, salary, leave entitlements, and more.

The Singapore Statutes Employment Act, otherwise known as the Employment Act, is a fundamental part of the legislation that safeguards the rights and interests of both employers and employees in Singapore. Familiarising yourself with the Act is crucial for employees to protect their rights and to ensure fair treatment in the workplace. On the other hand, employers must fulfil their responsibilities as per the Singapore Statutes Employment Act to maintain a harmonious and productive work environment.

Under the Employment Act, both local and foreign employees are protected, with a few exceptions. For instance, seafarers, domestic workers, and civil servants are not covered by this act. It's important for employees to be aware of their rights and entitlements under this legislation.

The Employment Act has been a cornerstone of Singapore's labour laws since its enactment in 1968. It was introduced to address the growing need for comprehensive legislation that would protect the interests of both employers and employees in an evolving work environment.

Key Provisions and Rights for Employees

While the Employment Act provides a strong foundation for employee rights and protections, it is important for employees to be aware of its provisions. By understanding their rights and entitlements under this legislation, employees can ensure that they are being treated fairly and can take appropriate action if necessary.

Employment contracts and essential terms

Let's delve into the matter of employment contracts and their essential terms. An employment contract, also known as a contract of service, is an agreement between an employer and an employee that outlines the terms and conditions of employment. It's legally binding and can be written, verbal, or a combination of both. The Singapore Employment Act, however, encourages written contracts to ensure both parties fully understand their obligations.

The essential terms of a contract typically include the employee's job title and role, their salary, working hours, and leave entitlements. It may also detail the company's code of conduct and procedures for disciplinary and grievance handling. Furthermore, the Act mandates the issuance of Key Employment Terms (KETs) in writing, for all employees who are covered, within 14 days of the start of their employment. This ensures clarity and protects both parties.

Working hours, overtime, and rest days

The Employment Act sets the standard for working hours, overtime, and rest days. For instance, an employee cannot be contractually obliged to work more than 44 hours in a week, excluding breaks. If a worker’s job requires them to exceed this limit, they should be compensated with overtime pay. Overtime work is capped at 72 hours per month, and the rate is usually at least 1.5 times the basic hourly rate.

Rest days are also a crucial part of the Employment Act. Every employee is entitled to one rest day per week, which can be compensated if it's not used.

Leave entitlements: annual, sick, maternity, and paternity leave

Under the Employment Act, employees have access to various leave entitlements. This includes annual leave, which starts at seven days for the first year of service and increases by one day per year of service, up to a maximum of 14 days.

Employees are also entitled to paid sick leave, which can range from 5 to 14 days for outpatient sick leave and 15 to 60 days for hospitalisation leave.

Maternity and paternity leave are provided too. Mothers are entitled to 16 weeks of paid maternity leave if they meet certain criteria, while fathers are entitled to two weeks of paid paternity leave.

Salary, payment, and deductions

The Act doesn't specify a minimum wage but sets the terms for payment and deductions. Employers must pay their employees at least once a month, within seven days after the end of the salary period. Deductions are allowed for specific reasons, such as for employee's share of CPF contributions, absence from work, or for damage or loss of goods expressly entrusted to the employee.

Also, it is beneficial to leverage professional accounting services in Singapore to ensure that these financial aspects are properly managed.

Termination and retrenchment

The Act outlines guidelines for termination and retrenchment. Employers and employees can terminate a contract by serving the notice period or by paying salary in lieu of notice. For retrenchments, employers should adhere to the guidelines set by the Ministry of Manpower and the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.

These provisions play an integral role in maintaining a fair and balanced working environment for employees in Singapore.

Obligations and Responsibilities of Employers

The Employer Act Singapore, better known as the Employment Act, stipulates the duties and obligations that employers have towards their employees. These responsibilities range from providing a safe working environment to promptly paying salaries. The Employer Act Singapore also mandates adherence to contractual obligations, respect for employees' rights, and treating all employees fairly and without discrimination. Keeping the rules set by the Employer Act Singapore is a mandatory part of running a business in Singapore.

Employers' duties to employees

Under the Act, employers have significant responsibilities towards their employees, including providing a safe working environment, respecting their rights, ensuring they are treated fairly, and adhering to their contractual obligations. These responsibilities extend to the management too. For instance, a non-executive director has specific duties and responsibilities under the Act.

Compliance with minimum employment standards

The Act sets minimum employment standards that every employer must meet. These include providing proper rest days, paying at least the agreed salary, and adhering to working hours, among others. If employers fail to meet these standards, they can be subjected to penalties under the law.

Workplace safety and health regulations

Employers are required to comply with Singapore's Workplace Safety and Health Act. This involves implementing safety measures, providing employees with necessary training, and taking steps to minimise workplace hazards. Knowledge about the work injury compensation act is also crucial as it covers the rights of employees in the event of a workplace injury.

By fulfilling these obligations, employers create a positive work environment that fosters trust and productivity.

Employment Disputes and Mediation

Despite efforts to maintain a harmonious work environment, employment disputes sometimes arise. The Employment Act facilitates the resolution of such conflicts through mediation and other dispute resolution mechanisms.

If an employee encounters a problem at work, they can seek assistance from the Ministry of Manpower (MOM), which offers mediation services to help reach a fair resolution. This process helps both parties to understand each other's concerns and find mutually agreeable solutions.

Mediation not only saves time and costs but also allows for a more amicable resolution, preserving the working relationship between employers and employees.

Employment Act Amendments and Updates

The Employment Act is a living document that is periodically updated to adapt to the changing needs of the workforce. Recent amendments have aimed to strengthen employee protection and enhance employment standards.

Recent changes and updates to the Employment Act

The Employment Act is a living document that is periodically updated to adapt to the changing needs of the workforce. Recent amendments have aimed to strengthen employee protection and enhance employment standards. These changes can impact various aspects of employment, including work permit renewal processes, which are crucial for foreign workers.

The Latest Employment Act Singapore updates are aimed at strengthening employee protection and enhancing employment standards. For instance, from April 1, 2019, all employees, regardless of salary level, are covered for core provisions such as minimum days of annual leave, paid public holidays, and sick leave. These changes brought by the Latest Employment Act Singapore mean that more employees can now enjoy basic protections. Employers must ensure they are compliant with these updates, which may require changes to existing HR policies and processes. Staying informed about these updates is crucial to maintain compliance with the legislation.

Implications for employers and employees

These changes mean that more employees can now enjoy the basic protections of the Employment Act. Employers, on the other hand, must ensure they are compliant with these updates, which may require changes to existing HR policies and processes.

It is essential for employers and employees to stay informed about these updates to maintain compliance with legislation and understand their respective rights and obligations.

Special Considerations

While the Employment Act covers many aspects of the employment relationship, it's important to note some special considerations:

Specific provisions for part-time, temporary, and contract workers

Part-time, temporary, and contract workers also have specific provisions under the Act. These workers enjoy similar protections, such as overtime pay, rest day pay, and public holiday pay, pro-rated according to their contracted hours.

Employment of foreign workers and work pass requirements

Under the Employment of Foreign Manpower Act Singapore, the Employment Act also extends its provisions to cover foreign employees. However, there are specific rules that employers must follow when hiring foreign workers. For instance, it is the employer's responsibility to apply for and maintain valid work passes for their foreign employees. This includes ensuring that they possess a valid Singapore employment pass, which is necessary for foreign professionals, managers, executives, and technicians.

By understanding these special considerations, employees can ensure they are well-informed and protected in their unique employment situations.

Conclusion

The Singapore Employment Act is a comprehensive piece of legislation that safeguards the rights and interests of both employers and employees. By familiarising themselves with the act, employees can better protect their rights and ensure fair treatment in the workplace. Employers, on the other hand, must fulfill their responsibilities to maintain a harmonious and productive work environment. With ongoing updates and changes, it is crucial for individuals and organisations to stay up-to-date with the latest developments surrounding this legislation.

Remember, a good working relationship between employers and employees is crucial for a thriving workforce and a prosperous economy. By understanding and complying with the Employment Act, we can contribute to creating a fair and equitable working environment for all.