a6 employment act

THE EMPLOYMENT ACTAct covers every employee under contract of service with an employerwith an employer.It governs the minimum employment terms & conditions of employees under a contract of service.Excludes:

seamend ti kdomestic workersStatutory board & government employeesmanagers and executives (those earning basic monthlymanagers and executives (those earning basic monthly salary of $2,500 and below are protected against non-payment of salary)

Employment Act

Definition of “workman” - involved in manual labourIncludes:Includes:

skilled or unskilled manual workerthose supervising workmen and performing manual workthose in First Schedule of Employment Act

Excludes:th h ldi i l/ ti iti ith di tthose holding managerial/executive positions with direct authority/influence in hiring/firing, promotion, transfer, reward/discipline of employees or in formulating strategiesreward/discipline of employees, or in formulating strategies and company policies, and the management and running of the business;

If you are covered under the EA:Non-workman WorkmanBasic monthly salary $2 000 & below Basic monthly salary $4 500 & belowBasic monthly salary $2,000 & below Basic monthly salary $4,500 & below

You will be covered for the following provisions under the EA:Salary paymentHours of workSi k lSick leaveAnnual leavePublic holidaysPublic holidaysNotice period for termination

If you are covered under the EA:Non-workman WorkmanB i thl l b $2 000 B i thl l b $4 500Basic monthly salary above $2,000 Basic monthly salary above $4,500

You will be covered for the following provisions under the EA:You will be covered for the following provisions under the EA:

Salary paymentSick leaveSick leavePublic holidaysNotice period for termination

Employment Act

Contract of service and termination of contractWhat is a contract of service?Agreement oral/writing between “employer” and “employee” Contract for service?Not employer-employee relationship. Usually independentcontractorTermination of contract of service

notice to other party or payment in lieueither party may waive notice

Employment Act

Notice of termination of serviceIf contract of service is silent as to notice period, then noticerequired as follows:q

1 day’s notice if employed less than 26 weeks1 week’s notice if employed more than 26 weeks but less p ythan 2 years2 week’s notice if employed 2 years or more but less than 5 years4 week’s notice if employed more than 5 years

Employment Act

Breach of contract of serviceB l f il l i hi 7 d f d dBy employer - failure pay salary within 7 days after due dateBy employee - absent from work for more than 2 working

i h l/i f i ldays continuously without approval/informing employerAction by employer when employee misconducts

InquiryIf found guilty, employer can

dismiss employee downgrade suspend not more than 1 weekIf dismissed without just cause, employee can appeal to Minister for Manpower

Employment Act

What can employee do if he/she feels that he/she has been f i l di i d?unfairly dismissed?Appeal to MOM to be reinstated to former employment

l b d i i i i hi h fAppeals must be made in writing within 1 month of dismissalMOM ill i ti t d if di i l ith t j tMOM will investigate and if dismissal without just cause or excuse, the company will be required reinstate or compensate employeecompensate employee

Employment Act

Unjust DismissalStansfield Business International Pte. Ltd. v MOM [1999] Facts:Appellant dissatisfied with Mr. Ngerng’s (lecturer) conduct and offered let him resign with ex gratia payment of 1month’s salary. Ngerng rejected offer and Stansfield issued termination letter with notice.Ngerng complained of unjust dismissal to Minister of Manpower and requested to be reinstated in his employment.

Employment Act

Stansfield Business International Pte. Ltd. v MOM [1999] Mi i l d d i d bli h d d di i lMinister concluded no misconduct established and dismissalunjust.

fi ld li d f j di i l i i i iStansfield applied for judicial review against Minister’s decision.Held:Procedures adopted by MOM were wrong and in breach of natural justice.

Employment Act

Salary - all remuneration payable to employee,not including:

accommodation, lights, water, medical, provident fund, i i i b fipension, transport, gratuity, retirement benefits

Base rate of payTotal amount of money employee entitled to either for time period (hourly, daily, weekly) or for completed task (does notperiod (hourly, daily, weekly) or for completed task (does notinclude O/T or bonus)

Employment Act

How often should employee be paid salary?At least once per month within 7 days after end of salaryAt least once per month, within 7 days after end of salary periodovertime pay to be paid within 14 days after end of periodp y p y p

When to pay salary after termination of service contract?If dismissed for misconduct - on last day of employment y p yor within 3 working days from dismissal dateIf employee resigns - on last day employment If employee leaves without notice - within 7 days from last day employment

Employment Act

Salary can be deducted under Act for:absence from workdamage/loss of employer’s goodsdamage/loss of employer s goodscost of meals supplied at employee’s requesth i li dhousing suppliedrecovery of advances/loans installmentincome tax/CPF payments etc.

Employment Act

Advances can be recovered in installments by d d i f l d hdeductions from salary spread over not more than 12 monthsNo installments shall exceed one quarter of salary due for the period in respect of which deduction is made

Employment ActEmployment Act- Section 33 Part IV

• Hours of Work Applicable only to: • Overtime• Rest Day

• All Workmen (earning not more than $4,500 per

th)y• Public Holidays• Annual leave

month)• Other employees earning

not more than $2,000 per• Sick Leave• Retrenchment

not more than $2,000 per monthExcludes

1. bonus,Benefit

• Retirement Benefit2. AWS,3. productivity incentives, and4. allowances

• AWS, Bonuses4. allowances

Employment ActEmployment Act- Part IV

Rest Days24 hrs. (Sunday or other rostered day)30 hrs. for shift workerslongest possible interval between 2 rest days = 12 days

Hours of workperiod employee expected carry out duties assignednot to include intervals for rest, tea, meal breaks


Normal hours of work limit8 h d 44 h k8 hrs. per day or 44 hrs. per weekif 5 day week, not more than 9 hrs. per day or 44 hrs. per weekweekby agreement, if 1 week less than 44 hrs., following week more than 44 hrs but max 48 hrs or total 88 hrs inmore than 44 hrs., but max. 48 hrs. or total 88 hrs. in continuous 2 weeksif above hours exceeded O/T pay of min 1 5 times hourlyif above hours exceeded, O/T pay of min. 1.5 times hourly basic rate of pay


Shift worker’s working hoursMax 12 hrs per day provided average working hours onMax. 12 hrs. per day provided average working hours on any continuous 3 week period not exceeding 44 hours per week

Non shift workerNon-shift worker Can work up to 12 hrs. a day, provided:

Employee’s written consentEmployee s written consentEmployer prepares monthly roster, informing of rest days if these not SundaysO/T ll id if th f 44 h kO/T allowance paid if more than average of 44 hrs. a week over continuous 3 week period


Break & Meal times N i d k

Max. no. of hrs. a dayEmployee not allowed workNot required work more

than 6 hrs. without breakIf required work more

Employee not allowed workmore than 12 hrs. daily (including O/T) except:If required work more

than 8 hrs. continuously, to be given meal break

AccidentWork essential to life, national d f / itto be given meal break

(not less 45 mins.)defence/securityUrgent work on machineryShift worker not allowed work more than 12 hrs. daily


Payment of O/T allowancesTo be paid within 14 days of last day of salary periodTo be paid within 14 days of last day of salary periodRate not less than one and half times hourly basic rate

Computations:Computations:Hourly basic rate for monthly-rated employee12 X monthly basic rate of pay12 X monthly basic rate of pay52 X 44Hourly basic rate for daily ratedy yDaily pay at basic rateWorking hrs. per day


Hourly basic rate for piece-rated employeeT l kl b i fTotal weekly pay at basic rate of payTotal no. of hrs. worked in week

O/T pay is:Hourly basic rate of pay x 1.5 x no. of O/T hrs. workedMax. hrs. of O/T work is 72 hrs. a month


Public holidays11 gazetted holidays

Annual leaveAf ki l 311 gazetted holidays

If public holiday on employee’s rest/off day, next working day

After working at least 3 months, entitled annual leave from 7 – 14 daysis paid holiday

Employer can either compensate with extra day’s

leave from 7 14 daysCalculation of pro-rated annual leaveco pe sa e w e a day s

pay or give another off dayMonthly-rated employee not entitled to holida pa if absent

annual leave

entitled to holiday pay if absent day before/after holiday

Annual leave

Year of service Days of leave1st 7

Number of days of leave depends on what is stated in 1st 7

2nd 83rd 9

on what is stated in employment contract but should not be less than the

3rd 94th 10

following (see table):

5th 116th 127th 138th and h f

14thereafter


Forfeiture of annual leave if:Absent without permission for more than 20% of workingAbsent without permission for more than 20% of working days in month/yearFails take leave within 12 months after the end of every 12 ymonths’ continuous serviceDismissed for misconduct

If service terminated before consuming annual leaveEmployer to pay for unconsumed leave

Leave taken on SaturdayConsidered as full day’s leave but employer can decide other computation methodother computation method.


Annual entitlement of sick leave14 days where no hospitalisation needed and up to 6014 days where no hospitalisation needed and up to 60 days if needed

Employee entitled to paid sick leave if:p y p1. Served at least 3 months. Entitlements from fourth to

sixth month will be phased in.2. Sick leave certified by Co.’s doctor/Govt. doctor3. Informed/tried inform employer of absence within 48

hrshrs.Employer is required to pay minimally the medical consultation feesconsultation fees


Salary calculationIncomplete month of work where employee:Incomplete month of work where employee:

Starts work after first day of monthResigns before last day of monthResigns before last day of monthOn no-pay leave for one or more days during monthOn reservist training during monthOn reservist training during month

Formula for salary payable to monthly-rated employee for incomplete month of workp f

monthly gross rate of pay x total no. of actual days Total no. of working days in month worked in that month


Use of basic rate pay Use of gross rate payS l i li fWork on rest day

Work on public

Salary in lieu of termination noticeSalary deduction forp

holidayOutpatient sick leave

Salary deduction for unauthorised absence from workOutpatient sick leave workPaid public holidaysApproved paid leaveApproved paid leave (annual, hospitalisation, maternity leave)


What is “productivity incentive payment”?Variable payment as reward for:

Improvement in employee’s performanceImprovement in employee s performanceIncrease in employee’s productivity/contributionShift d tt d ll t d thiShift and attendance allowances not under this category


Retrenchment benefits to be given to:R h d l i h 3 ’ i iRetrenched employee with 3 years’ continuous serviceQuantum not stipulated in Act

b i d b l d lQuantum to be negotiated between employee and employer or found in contract

R ti t b fit t b i tRetirement benefits to be given to:Employee with not less than 5 years’ continuous serviceCPF t ib ti b i t d d f ti t b fitCPF contributions obviated need for retirement benefitsRetirement age raised to 62 years w.e.f. 01/01/99


AWS, Bonuses, and Annual Wage Increases:

It is a contractual obligation of the l t if th id d employer to pay if these are provided

for:• in the employment contract orin the employment contract or• collective agreement

MATERNITY PROTECTION &MATERNITY PROTECTION & BENEFITS

(1 O t b 2004)(1 October 2004)

Employment Act (EA)Employment Act (EA)

- Part IX

OR

Children Development CoChildren Development Co--Savings Act (CDCA)Savings Act (CDCA)Children Development CoChildren Development Co--Savings Act (CDCA)Savings Act (CDCA)

-- Section 9Section 9

MATERNITY PROTECTION & BENEFITSBENEFITS

Under CDCA, employee entitled to 16 weeks maternity leaveif h f ll i lif i di iif she meets following qualifying conditions:

Her child is a Singapore citizenThe child’s parents are lawfully married; andShe has worked for employer for continuous S e as wo ed o e p oye o co t uousduration of at least 90 days before birth of child

MATERNITY PROTECTION & BENEFITSBENEFITS

Under EA where employee not in managerial or executive position, but is either not married or if child not a Singapore citizen, she entitled to 12 g p ,weeks maternity leave for birth of 1st/2nd child. However only first 8 weeks leave paid by employerHowever, only first 8 weeks leave paid by employer.

MATERNITY LEAVE OFMATERNITY LEAVE OF ABSENCE

12 k12 weeks

under EA:• If mother either not

i d hild tmarried or child not Singapore citizen•for birth of 1st or 2nd child•Only first 8 weeks paid by employer

CONSUMPTION OF MATERNITY LEAVE

Option A4 weeks immediately before confinement and8 weeks immediately after confinementy

4 weeks 8 weeks

ConfinementConfinementDate

CONSUMPTION OF MATERNITY LEAVE ( t’d)MATERNITY LEAVE (cont’d)

O ti BOption BA period of 12 weeks commencing on the day of confinement or commencing within 28 days immediately preceding confinement

Commencement date

28 Confinement Date

28 days

12 weeks12 weeks

12 weeks

12 weeks

CONSUMPTION OF MATERNITY LEAVE (cont’d)MATERNITY LEAVE (cont d)

Option COption C

• A first period of 8 weeks; and a further period i l t t 4 k k b t t th 24equivalent to 4 work weeks, but not more than 24

days in aggregate, to be taken in one or more periods within 6 months after the confinementwithin 6 months after the confinement

28 daysConfinement Date

6 months28 days 6 months

Not more than 24 days8 weeks

in one or more periodsUnconsumed benefits will be forfeited if Unconsumed benefits will be forfeited if employee leaves employment (for any reason)

EMPLOYER’S OBLIGATIONPAID MATERNITY LEAVE- PAID MATERNITY LEAVE

Under EA

8 weeks for 1st & 2nd child at Gross rate of pay8 weeks for 1st & 2nd child at Gross rate of pay

8 weeks – Paid 4 weeks - Unpaid

Exception : If Multiple Birth For 1st Delivery,paid 8 weeks for 2nd Delivery

Beyond the first 8 weeks, payment for maternity leave subject to contractual agreementsubject to contractual agreement

CHILDCARE LEAVE

Under CDCA, if employee (both fathers and mothers) satisfies following conditions entitled to 6mothers) satisfies following conditions, entitled to 6 days enhanced childcare leave benefit:

Child below 7 years oldChild below 7 years oldChild (including adopted and stepchild) is Singapore citizenChild’s parents lawfully marriedEmployee worked for employer at least 3 monthsParent need not be Singapore citizen as long child is4th to 6th day childcare leave reimbursed by government

CHILDCARE LEAVE

Under EA, If child not a Singapore citizen, the PR f i h d d EA dor foreigners who are covered under EA and meets

qualifying conditions of 3 month’s service with l i i l d 2 d hild lemployer, is entitled to 2 days childcare leave per

year if he/she has child below 7 years oldThe 2 days childcare paid by employer and not claimable from government

CHILDCARE LEAVE (cont’d)unused leave lapses at the end of entitlement year entitlement year

no encashment

cannot offset against notice

part-year employment = Full-year entitlemententitlement

Employment Act

Contractor and contractingM i i i l j i l d llMain contractor or principal jointly and severally responsible with sub-contractor for salary of workman employed by sub contractorworkman employed by sub-contractorMain contractor is liable for up to salary earned in a montha monthWorkman must lodge claim with Commissioner for recovery of salary within 60 days from duefor recovery of salary within 60 days from due date

Employment Act

Employment of children and young personsChild - under 15 years of agey gYoung person (YP) - Aged 15 years or above but under 16 years of ageMin. age for employed child = 13 yearsRestriction on types of work for child/YPRestriction on types of work for child/YP

Light work for childYP can work in industrial undertaking but has to be certified fit for employment and the Commissioner to be notifiedemployment and the Commissioner to be notifiedBoth child & YP cannot be employed in occupation injurious to health, service involving machinery, live electrical appliances or underground workwork

Employment Act

Conditions & Restrictions governing hours of W k f hild d YPWork for children and YP

Not allowed work at night between 11 p.m. to 6 a.m, during their rest days or employed in undergroundduring their rest days, or employed in underground work.Work Hours cannot exceed:

1. 3 hrs. without break of 30 mins. or 6 hrs. in a day for child

2. 4 hrs. without break of 30 mins. or 7 hrs in a day (inclusive of schooling hours) for YP.

Employment Act

Child:can only work in non-industrial undertakingcan only work in non industrial undertakingcan work in industrial undertaking where family members are employed

k l if l d l f hican work on a vessel if vessel under control of his parent

If child attending school, period of work together withIf child attending school, period of work together with period of school shall not exceed 6 hours in any one day. These restrictions not applicable if child employed in technical vocational or industrial training school undertechnical, vocational or industrial training school under approved apprenticeship scheme supervised by MOE or ITE

Employment Act

Claims, complaints and investigations into offencesEmployee/employer may lodge claim on salary matters withEmployee/employer may lodge claim on salary matters with MOM provided:

Employee covered by Employment ActClaim pertains to matters that arose not more than 1 year from date claim madeIf employee resigned, claim must be lodged within 6 months from date p y g , gleft employmentCommissioner may investigate and order either party pay or dismiss claimDecision final but dissatisfied party may appeal to High Court within 14 days

Employment Act

Claim fees$3 for employee$3 for employee$20 for employer

Penalties for infringing any provision of Employment ActPenalties for infringing any provision of Employment ActFine of up to $1,000 (per infringement);For the second or subsequent offence, fine of $2,000For the second or subsequent offence, fine of $2,000 and/or imprisonment.

The employer’s work pass applications/renewal may also be rejected.

a6 employment act

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