employment law overview 2017 - l&e...

an alliance of employers’ counsel worldwide

EmploymEnt law ovErviEw 2017

Singapore

i. GEnEral 01ii. hirinG practicEs 03iii. EmploymEnt contracts 04iv. workinG conditions 05V. Anti-DiscriminAtion LAws 07vi. social mEdia and data privacy 08vii. authorizations for forEiGn EmployEEs 09 viii. tErmination of EmploymEnt contracts 10iX. rEstrictivE covEnants 12X. riGhts of EmployEEs in casE of a transfEr of undErtakinG 13Xi. tradE unions and EmployErs associations 14

Xii. social sEcurity / hEalthcarE / othEr rEquirEd BEnEfits 15

Table of contEnts

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(excludingovertimepayments,bonuspayments, annualwagesupplements,productivityincentive paymentsandanyallowancehoweverdescribed), (collectivelyreferredtoas‘PartIVEAEmployees’).

2. KeyPoints

• EmploymentlawinSingaporeislargelygoverned bytheEmploymentActandthetermsofthe employmentagreement.• Employersshouldbeawareof: • theobligationsimposedonemployersin relationtoemployees’personaldata • recentchangeswhichaffordgreaterprotection andrepresentationforemployeesinmanagerial andexecutivepositions,whichincludestrade unionrepresentation,unionprotectionandthe settingupofanEmploymentClaimsTribunal (throughwhichsuchemployeesmakeseek recourseinrelationtoemploymentdisputes) • betterbenefitsforemployeeswhoareSingapore citizens • requirementsentitlingretiringemployeestobe offeredre-employmentuntil67yearsofage• Employersmustmakemonthlycontributionson behalfofSingaporecitizensandSingapore PermanentResidentsintotheCentralProvident Fund(acompulsorysavings/pensionsplan).• Labourdisputesbetweentradeunionsand employersarerelativelyrareinSingapore.• Recentlegislationenacted,whichhasanimpact onemploymentlawinSingaporeinclude(i) ProtectionfromHarassmentAct2014(workplace harassment);and(ii)thePersonalDataProtection Act2012(protectionofemployee’spersonaldata).

3. LegalFramework

TheEmploymentActistheprimarypieceoflegislationgoverning the regulation of employment matters inSingapore.TheEmploymentofForeignManpowerAct(Cap 91A) is also relevant where foreign workers areemployed.

4. NewDevelopments

EmploymentClaimsTribunal-ItisenvisagedthattheMinistryofManpowerwillsetupanEmploymentClaimsTribunalinthefirstquarterof2017.Whileprofessionals,managersandexecutives(PMEs)


i. GEnEral

1. IntroductoryParagraph

Under the Employment Act (Cap 91) of Singapore(EmploymentAct), anemployeemeans apersonwhohasentered intoorworksunder a contractof servicewith an employer and includes a workman, and anyofficer or employee of the Government included ina category, class or description of such officers oremployeesdeclaredbythePresidenttobeemployeesforthepurposesoftheEAoranyprovisionthereof,butdoesnotinclude:

• anyseaman;• anydomesticworker;• subjecttoSection2oftheEmploymentAct,any personemployedinamanagerialoranexecutive position(i.e.anypersonwhoisemployedina managerialoranexecutivepositionandisinreceipt ofasalarynotexceeding$4,500amonth(excluding overtimepayments,bonuspayments,annualwage supplements,productivityincentivepayments andanyallowancehoweverdescribed),orsuch otheramountasmaybeprescribedinsubstitution bytheMinister,shallberegardedasanemployee forthepurposesoftheEmploymentActexceptthe provisionsinPartIV);and• anypersonbelongingtoanyotherclassofpersons whomtheMinistermay,fromtimetotimeby notificationintheGazette(theGazettepublished byorderoftheSingaporeGovernment),declared nottobeemployeesforthepurposesofthe EmploymentAct.

Such employees are referred to as ‘Employment Actemployees’.

Part IV of the Employment Act contains provisions,which relate to restdays,hoursofwork,annual leaveandotherconditionsofserviceandonlyappliesto:

• workmenwhoareinreceiptofasalarynot exceedingS$4,500amonth(excludingovertime payments,bonuspayments,annualwage supplements,productivityincentivepaymentsand anyallowancehoweverdescribed);• employees(otherthanworkmen)whoarein receiptofasalarynotexceedingS$2,500amonth

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previouslyhadtosettlesalary-relateddisputesthroughcommencingpotentiallycostlycourtproceedings,theestablishmentoftheEmploymentClaimsTribunalwillgrantPMEsgreateraccesstorecourseinrelationtosuchdisputesthroughadjudication.

KeyEmploymentTerms¬–EmployersarerequiredtoissueitemisedpayslipsandkeyemploymenttermstoEmploymentActemployeesfrom1April2016.EmployersmustalsomaintaindetailedemploymentrecordsofEmploymentActemployees,includingemployeeinformationrecordsandsalaryrecords.

AdministrativePenaltyFramework–LessseverebreachesoftheEmploymentActwillattractadministrativepenaltiesasopposedtocriminalpenalties.

BetterBenefits–Paternityleavewillbeextendedtotwoweekswitheffectfrom1January2017.Currently,theyareentitledtooneweekofpaternityleaveandmaybeeligibleforanadditionalweekiftheiremployersvoluntarilyagreetoprovideit.SinglemothersofSingaporeanchildrenwillalsobeentitledtobettermaternitybenefitsinthenearfuture(envisagedtotakeeffectinmidtolate2017).


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TheTripartiteAllianceforFairEmploymentPracticeshasissuedcertainguidelinesonquestions,whichmayormaynotbeaskedduringthehiringinterview.Questionsaskedshouldindicatethatemployeesareselectedbasedonmeritandquestionsrelatingtoage,race,gender,religion,maritalstatusandfamilyresponsibilitiesordisabilitiesshouldbeavoided.Strictlyspeaking,suchguidelinesarenotlegallyenforceable;howeveremployersmayfacecensurefromtheMinistryofManpowerforanycontraventions.Theguidelinesspecifythatanobjectiveandfairselectioncriteriamustbeappliedatallstagesoftherecruitmentprocessandemployersshouldavoidanyquestions,whichmaybeviewedasdiscriminatory.


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ii. hirinG practicEs


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1. MinimumRequirements

ThestandardtypeofemploymentcontractinSingaporeis an “open-ended” contract terminable on notice(subject to the protection which the law provides onunfairdismissal).

Anemploymentcontractshouldasaminimumincludethefollowing:

• Commencementofemployment;• Appointment(jobtitleandjobscope);• Hoursofwork;• Probationperiod,ifany;• Remuneration;• Employeebenefits(e.g.sickleave,annualleave, maternityleave);• Terminationofcontract(noticeperiod);and• Codeofconduct(e.g.punctuality,nofightingat work).

2. Fixed-term/Open-endedContracts

Workersmaybecontractedtowork forafixedperiodonly or to performaparticular taskwith the contractterminating at the end of such period or on thecompletionofthetask.

There is no requirement for fixed term contracts tospecifythereasonwhyitisafixedterm.

3. TrialPeriod

Employees may be contractually bound to servea probationary period under their employmentagreement.

There are no statutory restrictions or requirementsregardingthelengthofaprobationaryperiod.Typically,suchperiodsrangefrom3to6months.

4. NoticePeriod

Thegeneralprinciple is that thepartywho intends toterminatetheemploymentcontractmustgivenoticetotheotherpartyinwriting.

Thenoticeperiodtobegivendependsonwhatisagreedin thewrittencontract. If there isnowrittencontract,the notice period to be given depends on what thepartieshaveagreeduponverbally.

InthecaseofEmploymentActEmployees,intheeventthat therearenopreviousagreementsby theparties,thefollowingshallapply:

iii. EmploymEnt contracts

Length of Service

Notice Period

Less than 26 weeks 1 day 26 weeks to less than 2 years 1 week 2 years to less than 5 years 2 weeks 5 years and above 4 weeks


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iv. workinG conditions

1. MinimumWorkingConditions

Singapore generally adopts a national, strategic andlong-termapproachtoachievesustainable,continuousimprovementinworkplacesafetyandhealthconditions.

The Ministry of Manpower emphasizes the need toinstill a culture of safety and health in all workplacesandhasalwaysreinforcedthemessagethatpoorsafetymanagement could lead to costly losses. Those whocreate workplace health and safety risks will be heldaccountable.

2. Salary

In2012,Singapore,throughtheNationalTradeUnionCongress,introducedtheProgressiveWageModel(PWM),aspartofarangeofnationalprogrammesandinitiativestoincreasethesalariesofworkersthroughtheenhancementofskillsandimprovingproductivity.

TheActprovidesthatminimumratesofsalariesforchildrenoryoungpersonsengagedinparticularindustriesorworkmaybeprescribed.However,todatenominimumrateisinforce.

ThePWMencompassesspecificwageladderstailoredforeachindustrysector.Eachwageladdercomprisesaseriesofwagepoints,andisintendedtoenableworkersatalllevelsoftheladdertoupgradeandprogresstotheirnextrespectivewagepoints.

Atpresent,PWMhasbeenimplementedforthecleaningandsecurityindustries.

3.MaximumWorkingWeek

PartIVoftheEmploymentActgenerallyprovidesthatnoPartIVEAEmployeeisrequiredtoworkformorethan8hoursinadayorformorethan44hoursinoneweek.Further,PartIVEmploymentActEmployeesareallowedonerestdayperweek,althoughinthecaseofashiftworkeracontinuousperiodof30hoursmaybesubstitutedforarestday.

ForemployeeswhoarenotPartIVEAEmployees,matterssuchasrestdaysandhoursofworkwilldependoncontractualprovisionsfoundintheircontractsofemployment.

4. Overtime

Part IV EA Employees

OvertimeallowanceispayableifthePartIVEAEmployeeisrequiredbytheemployertoworkabovethelimitofworkinghoursspecifiedabove.

Allworkinexcessofthenormalhoursofwork(excludingbreaktime) is consideredasovertimework.APart IVEAEmployeemustbepaidno lessthan1.5timeshis/herhourlybasicrateofpayforovertime.Paymentforovertimeworkmustbemadewithin14daysafterthelastdayofthesalaryperiod.

ThehourlybasicrateofpayforovertimeiscalculatedbyreferencetoprescribedformulaedependingonwhetherthePartIVEAEmployeeismonthly-rated,daily-ratedorpiece-rated.

Employees who are not Part IV EA Employees

In relation to employees who are not Part IV EAEmployees, any overtime payments will depend oncontractual provisions found in their contracts ofemployment.

5. Holidays

Generally,EmploymentActemployeesareentitledtoapaidholidayattheirgrossrateofpayonspecifiedpublicholidays.Thereare11gazettedpublicholidaysinSingapore,beingNewYear’sDay,ChineseNewYear(twodays),HariRayaPuasa,HariRayaHaji,GoodFriday,LabourDay,VesakDay,NationalDay,Deepavali,andChristmasDay.Holidaysareinadditiontoannualleaveandrestdays.


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6. Employer’sObligationtoProvideaHealthyandSafeWorkplace

Employershaveanobligationtoensurethesafetyandhealthofemployeesatwork.Accordingly,employersarerequiredtotake,sofarasisreasonablypracticable,suchmeasuresasarenecessarytoensurethesafetyandhealthofpersons(notbeingitsemployees)whomaybeaffectedbyanyundertakingcarriedonattheworkplace.Itisworthnotingthatemployersarealsorequiredtoensurethementalhealthofemployeesatwork,andthismayincludeprotectionfromworkplaceharassment.ThisisdiscussedinfurtherdetailinSectionV.6below.


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1. BriefDescriptionofAnti-DiscriminationLaws

Anti-discriminationlawsarecontainedinseveraldifferentstatutes and there is no coherent piece of legislationdealingwithprotectionagainstdiscrimination.

In the context of employment law, the Constitutionof Singapore sets out certain prohibitions related todiscrimination. In addition, a number of guidelinesregarding anti-discriminatory behaviour have beenissuedtopreventdiscriminationintheworkplace.

2. ExtentofProtection

Under the Constitution of Singapore, discriminationagainst Singaporean citizens on grounds of religion,race, descent or place of birth, appointment to anyofficeoremploymentunderapublicauthority,orintheadministration of any law relating to the acquisition,holdingordispositionofpropertyortheestablishingorcarryingonofanytrade,business,profession,vocationoremployment, isprohibited.However,discriminationonthebasisofsex,age,disabilityorsexualorientationis not included in this general prohibition. There is aTripartiteAllianceforFairandProgressiveEmploymentPractices, which promotes non-discrimination in theworkplace.However,thesepracticesarejustguidelinesandarenotlegallyenforceable.

Whilst the rights of foreign citizens/expatriates arenot protected by statute, discrimination against suchindividuals canbearguedas contrary topublicpolicy.However, these types of cases are not commonlyreportedinSingapore.

3. ProtectionsAgainstHarassment

TheProtection fromHarassmentAct (No.17of2014)came into effect on 15 November 2014. It providesprotection fromharassmentandanti-socialbehaviour,including cyber-bullying and stalking. Offenders facea wide range of potential penalties, such as fines,imprisonment and community orders. Even thoughthereisnotaspecificoffenceofworkplaceharassment,

employersshouldbemindfulthattheActdoesapplytoactsofharassmentintheworkplace.

The Ministry of Manpower, National Trades UnionCongress and the Singapore National EmployersFederation has jointly released a Tripartite Advisoryon Managing Workplace Harassment (TripartiteHarassment Advisory) which sets out guidance to aidemployersandemployeesinpreventingandmanagingharassmentwhichoccursintheworkplace.

This Tripartite Harassment Advisory sets out helpfulguidelines for steps employers should implementto prevent and manage workplace harassment. Thisincludes developing a harassment prevention policy,providing information and training on workplaceharassmentand implementingreportingandresponseprocedures.

4. Employer’sObligationtoProvideReasonableAccommodations

There are no express requirements to provide suchaccommodations for employees. However, employersshould bemindful of obligations to ensure the safetyandhealthofpersonsintheworkplace.

5. Remedies

Theremediesavailablelargelydependonthelegislationtheclaimismadeunder.Forexample,certainlegislationwouldallowforpersonstobereinstatedtotheirformeremployment.Wheretheemploymentcontractprovidesforsuch,monetarycompensationmaybeanavailableremedy.

The Tripartite Alliance for Fair and ProgressiveEmployment Practices’ guidelines regarding non-discrimination do not set out any specific remedies,howevertheMinistryofManpowermaytakeactiontocensureoffenders.

V. Anti-DiscriminAtion LAws


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1. Cantheemployerrestricttheemployee’suseofInternetandsocialmediaduringworkinghours?

There is no explicit statutory restriction, whichprevents employers from restricting the employee’suseofInternetandsocialmediaduringworkinghours.EmployersarefreetoestablishtheirownsocialmediaandInternetpolicies.

2.Employee’suseofsocialmediatodisparagetheemployerordivulgeconfidentialinformation

While there is no express legislation to prevent suchaction,employersmaytakeactionagainsttheemployeevia a breach of contract. For instance, where theemployee divulging confidential information breachesan undertaking in the employment contract to keepconfidential sensitive information, the employer mayseekcivilremediesagainsttheemployee.

vi. social mEdia and data privacy


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AllforeignemployeeshavetopossessavalidworkpassbeforebeingemployedinSingapore.Itiscustomarythattheholderoftheworkpassisonlypermittedtoworkforthe specified employer and in a specified occupation.There are various types of passes: Work Permit,Employment Pass, EntrePass, S Pass, PersonalizedEmployment Pass, Miscellaneous Work Pass, TrainingWorkPermitandTrainingEmploymentPass.

vii. authorizations for forEiGn EmployEEs


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viii. tErmination of EmploymEnt contracts1. GroundsforTermination

There are several ways in which a contract may beterminated.Theseinclude:

• Noticegivenbyeithertheemployerortheemployee• Mutualagreement• Expiryofafixed-termcontract.Afixed-term contractautomaticallyterminatesattheendofthe fixed-termwithouttheneedfornotice• Terminationbytheemployerforcause(suchasfor embezzlement,fraud,orworkplaceviolence)

2. CollectiveDismissals

There is no specific legislation governing collectivedismissals. The grounds for termination set out insectionVIII.1.abovewouldapplytocollectivedismissals.There are Tripartite Guidelines on Fair EmploymentPractices regarding redundancy,which set out certainnoticeperiodsandretrenchment(redundancy)benefitspayments(whichare in linewiththeprovisionsoftheEmploymentAct).

3. IndividualDismissals

Individuals may be dismissed based on the variousgroundsforterminationsetoutinsectionVIII.1.above.

a. is sEvErancE pay rEquirEd?

Under the Employment Act, only those employeeswho are Part IV EA Employees, and employed in thecontinuousserviceofanemployerformorethan2years,willbeentitledtoretrenchment(redundancy)benefits.However, the actual amount of any such benefit issubjecttocontractualorcollectiveagreements.

In relation to Non-EA Employees, redundancy/retrenchment benefits will depend on contractualprovisionsfoundintheircontractsofemployment.

4.SeparationAgreements

a. is a sEparation aGrEEmEnt rEquirEd or considErEd BEst practicE?

Separationagreementsarenotexpresslyrequiredunderstatute. However, they are typically considered bestpracticeandareoftenenteredintouponterminationofamidtohigh-levelemployee.

B. what arE thE standard provisions of a sEparation aGrEEmEnt?

Theseparationagreementtypicallyincludesaclauseontheterminationpayment,awaiverofclaims,employeeindemnities,confidentialityclause,non-disparagementandpost-terminationrestrictions.

c. doEs thE aGE of thE EmployEE makE a diffErEncE?

Employersmaynotdismissemployeesonthegroundsofage.

The minimum age of retirement has been increasedto 62 years, and employers are now required to offerre-employment to eligible employees who turn 62,uptotheageof65. Alternatively, ifnosuitablejobisavailable, a one-off Employment Assistance Paymentwillbemadetotheemployee(recommendedtobeatleast3months’basicsalarycappedatSGD10,000).There-employment age ceilingwill be revised upwards in2017andtheEmploymentAssistancePaymentswillalsobeadjustedtoaccountforthelongerminimumperiodofre-employment.

d. arE thErE additional provisions to considEr?

Employers may wish to consider including in theseparation agreement, employee warranties thatexpresslyclarifythattherehasbeennobreachbytheemployeeof theemployment contract and that therewillbecontinuedcomplianceby theemployeeon the


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employment terms up to the date of the severancepayment(ifapplicable).

5.Remediesforemployeesseekingtochallengewrongfultermination

EAEmployeesandemployersmayapproachtheMinistryof Manpower for mediation or conciliation servicesin respect of employment disputes or be referred tothe Commissioner of Labour. Non-EA Employees canstill refer amatter to theCommissionerof Labour fordisputes relating tomatters such as salary payments.Employeeswhoareunionmembersmayseekassistancefromtheirunionsinresolvingdisputes.Finally,disputesbetweenunionsandtheemployermayseekconciliationwiththeMinistryofManpowerorbringthemattertotheIndustrialArbitrationCourt(veryrare).

As previously mentioned, the Employment ClaimsTribunalwillbeanotheravenueforemployeesseekingtoresolvesuchemploymentdisputes.


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iX. rEstrictivE covEnants

1. DefinitionofRestrictiveCovenants

A restrictive covenant is a clause, which restricts theactionofanypartytoit.Intheemploymentcontext,thiswould refer to a clause,which restricts the employeefrom doing certain actions, usually restrictions oncompetitivebehavioragainsttheemployer.

2. TypesofRestrictiveCovenants

Theusualtypesofrestrictivecovenantsare:

• Non-CompeteClauses;• Non-solicitationofcustomers;and• Non-solicitationofemployees.

3. EnforcementofRestrictiveCovenants—processandremedies

Restrictivecovenantsareprimafacievoidunlessthereisalegitimateinterestthattheemployerseekstoprotectandaredraftednowider than isnecessary toprotecttheinterestsofthepartiesandisintheinterestofthepublic.

Restrictivecovenantsmaybeenforcedbybringingacivilclaimfordamages(orwhereapplicable,injunctions)incourt.

4. UseandLimitationsofGardenleave

Gardenleaveiswhereanemployeeisrequestedbytheemployertorefrainfromworkingorcomingtoworkafternoticehasbeengivenoftheemployee’sresignation/termination.Fullsalaryandcontractualbenefitsarepayableduringthegardenleave.

GardenleaveistypicallycontractuallyagreedbetweentheemployerandtheemployeeandisfairlycommoninSingapore.


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X. riGhts of EmployEEs in casE of a transfEr of undErtakinG1.Employees’Rights

Under the Employment Act, where a business orpart thereof is transferred from the transferor to thetransferee, Section 18A automatically operates as anovationtothecontractsofemploymentofalloftheEAEmployeestothetransferee.Section18Aapplieswherethere is a sale of business on a going concern basis,andnotwherethereisasaleofassets.Thedistinctionbetween the two is sometimes one of degree, but inmostcases,itwillbeclearasamatteroflawwhetherabusinesssale,ratherthananassetsale,isinvolved.

2.RequirementsforPredecessorandSuccessorParties

TheEmploymentActspecificallyprovidesthattherewillbeanautomatictransferwithnobreakinthecontinuityofemploymentandthetermsandconditionsofserviceof theEAEmployees transferred shall be the sameasthoseenjoyedbythemimmediatelypriortothetransfer.


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Xi. tradE unions and EmployErs associations1. BriefDescriptionofEmployeesandEmployersOrganizations

TheTradeUnionsAct (Cap333)definesa tradeunionas an association of workers or employers that aimsto regulate relationsbetweenworkersandemployers.Theobjectivesofatradeunionarestatedasbeing:topromotegoodindustrialrelations;toimproveworkers’workingconditions;toenhancetheeconomicandsocialstatusofworkers;andtoraiseproductivityforthebenefitofworkers,employers,andtheeconomy.Anyemployeewhoisovertheageof16canberepresentedbyatradeunionandhasafreechoiceindecidingwhetherornottojoinatradeunion.

Nothing in any contract of service shall in any wayrestricttherightofanyemployeewhoisapartytosuchcontract:

• tojoinaregisteredtradeunion;• toparticipateintheactivitiesofaregisteredtrade union;or• toassociatewithanyotherpersonsforthepurpose oforganizingatradeunion.

2.RightsandImportanceofTradeUnions

Industrialactionispermitted,howeverbeforeanyformof action is taken, the majority of members affectedmusthaveagreedtoitbymeansofasecretballot.Strikeaction is prohibited for the three essential services ofwater, gasandelectricity. Forotheressential services,astrikeisprohibitedunless14dayspriornoticeisgivenofanystrike.

InSingapore, thegovernment takesa serious stand inrelation to industrial actions, as theywill damage thereputationofthecountry.Inthisregard,thelargesttradeunioninSingapore,theNationalTradesUnionCongress,has always enjoyed a close working relationship withthe government and employers so as to create a

harmoniousworkenvironmenttoprotecttheinterestsof the workers under its various divisions/ subsidiarytrade unions. As a result, labor disputes between thetradeunionsandemployersarerelativelyrare.

3.TypesofRepresentation

Trade unions must be formally recognised by theemployer prior to representing its members in anycollective bargaining negotiations. Such trade unionsmayalsorepresentPMEsforcertainspecifiedpurposes(e.g. disputes relating to a breach of employmentcontract).

4.Employees’RepresentationinManagement

ThereisnoexpresslegalrightunderSingaporelawforemployeestoberepresentedinmanagement.

5.OtherTypesofEmployeeRepresentativeBodies

Thereisnoexpresslegalrequirementforemployerstosetupsuchemployeerepresentativebodies.


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Xii. social sEcurity / hEalthcarE / othEr rEquirEd BEnEfits1.LegalFramework

The Central Provident Fund (“CPF”) is primarily thebedrockofSingapore’ssocialsecurityframework.

2.RequiredContributions

In Singapore, CPF is a compulsory comprehensivesavings plan for working Singaporeans and Singaporepermanentresidentsprimarilytofundtheirretirement,healthcareandhousingneeds.

AllemployeeseligibleforCPFandtheiremployersmakemonthly contributions to the CPF. Contribution rateschangeperiodicallybut forprivate sectorSingaporeancitizens and Singapore permanent residents (in theirthird year) below age 50 and earningmonthly wagesof above SGD 750, these are pegged at 17% for theemployer and20% for theemployee. Employeesoverage 50will have both their contribution rates reviseddownwards

3.Insurances

Employersarerequiredbylawtomaintainworkinjurycompensation insurance for (i) all employees doingmanual work and (ii) non-manual employees earningS$1,600orlessamonth.Failuretodosoisanoffencepunishable by a maximum fine of S$10,000 and/orimprisonmentofupto12months.

Itisnotmandatory,however,foremployerstomaintaininsurance for non-manual employees earning morethan S$1,600 a month. Nonetheless, employers willbe required to pay compensation in the event of avalidclaim,eveniftheydonotbuyinsurance.Assuch,employerscandecidewhetherornottobuyinsurancefor this groupofemployees,afterweighing their riskswiththecostofinsurancepremiums.

4.RequiredMaternity/Sickness/Disability/AnnualLeaves

annual lEavE -PartIVoftheEmploymentActprovidesthataPartIVEAEmployeewhohasservedhisemployerfornotlessthan3monthswillbeentitledtopaidannualleaveof7daysinrespectofthefirstyearofcontinuousservice with the same employer, and one additionaldayforeverysubsequentyearwiththesameemployersubjecttoamaximumof14days.

For Non-EA Employees, annual leave will dependon contractual provisions found in their contracts ofemployment.

sick lEavE - The Employment Act provides for agraduated scaleof sick leavedependingon the serviceperiod of the EA Employee with the employer butgenerallyanEAEmployeewhohasservedforaperiodofnotlessthan3monthswithaparticularemployershallbeentitledtopaidsickleavenotexceeding14dayseachyear(ifnohospitalizationisnecessary)orupto60daysayear(ifhospitalizationisnecessary).

For Non-EA Employees, sick leave will depend oncontractual provisions found in their contracts ofemployment. It is, however, customary for them tobe entitled to similar sick leave benefits as that of EAEmployees.

matErnity lEavE -Therearetwostatutesgoverningmaternityandadoptionleave:theEmploymentActitselfandtheChildDevelopmentCo-SavingsAct(“CDCA”).

AnemployeewhoiscoveredundertheEmploymentAct,butnotundertheCDCA,willbeentitledto12weeksofmaternityleave.Shewillbepaidbyheremployerforthefirsteightweeksofmaternityleaveifshehasfewerthantwochildren(excludingthenewborn),andshehasservedheremployerforatleast90daysbeforethebirthofthechild.Thelastfourweeksofmaternityleavecanbetakenflexiblyovera12-monthperiodfromthechild’sbirth.

UndertheCDCA(legislationthatonlyappliesinrespectto children that are citizens of Singapore), an eligibleemployee is entitled to absent herself fromwork fourweeks immediately before and 12 weeks immediatelyafterdelivery,totaling16weeks.Amothercanagreetotake the last8weeksofmaternity leaveflexiblyovera12-month period following the child’s birth with themutual agreement with her employer. An employeecoveredundertheCDCAwillbeentitledtoGovernmentpaidmaternity leave.Therequirementthatthemothermust bemarriedwill be removed in 2017, andeligiblesinglemotherswillalsobeentitledtothesamematernityleavebenefits.

UndertheEmploymentAct,anemployeewhohasservedanemployerforaperiodofnotlessthan3monthsandhasanychildbelowtheageof7isentitledtochildcareleaveof2daystobetakenatanytimeuptothechild’s7thbirthday.UndertheCDCA,leaveisuptoamaximumof6daysperyeardependingonthelengthofserviceoftheemployee.Employeesmaybeentitled to2daysofextended childcare leavewhere the child is between7and12yearsold.

5.MandatoryandTypicallyProvidedPensions

Certainpublicserviceofficers(ortheirestate)mayabletoreceivepensionsinaccordancewithcertainstatutes.Such pensions provide for lifetime support for publicserviceofficersaftertheirretirementorfortheirestateintheeventoftheirdemiseduringservice.

However with the establishment of CPF, Singapore ismoving towards the abolition of pensions for publicservants.

Intheprivatesector,thereisnoexplicitstatutoryrighttoapension.


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