Global Compliance Desk – Singapore

Key Upcoming Changes to the Singapore Employment Act

The Employment Act Amendment Bill (“EA Amendment Bill”), which sets out the amendments to be made to the current Singapore Employment Act (“EA”), was passed on November 20, 2018. These changes will come into effect on April 1, 2019. The EA Amendment Bill provides for six main key changes.

  • All employees will be subject to the EA;
  • An increase in the salary threshold of Part IV Employees;
  • Recognition of constructive dismissal;
  • Consent driven approach for permitted salary deductions;
  • Wider powers for the employment claims tribunal;
  • New retrenchment notification obligations.

All employees will be subject to the EA

Currently, the EA applies only to a class of the workers, namely employees in Singapore who are:

  • Employed in non-managerial or non-executive roles;
  • Employed in managerial or executive roles, if their salary does not exceed S$4,500 per month.

Hence, with regards to most employees, their employment rights and obligations are primarily set by reference to express terms and conditions in their employment contracts and any company handbook, policies, and procedures. However, From 1 April 2019, the amended EA will remove the salary cap of S$4,500 so that the core EA provisions will cover all employees, including all professionals, managers, executives, and technicians regardless of whether they are foreigners, Singaporeans or Singapore Permanent Residents. The exception to this new amendment to EA would be public servants, domestic workers, and seafarers, as they are covered separately by other legislation.

Conclusion

All employees (disregarding any salary thresholds) will enjoy the employee benefits under the core provisions of the EA, including:

  • Paid public holidays;
  • Paid sick and hospitalization leave, (employees will be entitled to paid sick leave after examination by any medical practitioner even if such medical practitioner was not appointed by the company;
  • Maternity benefits and childcare leave, maternity and childcare leave which are given under the EA, are for less extensive periods than to employees whose child/children are Singapore citizens.; and
  • Statutory protections relating to timely payment of salary, unauthorized deductions from salary, maternity protection and dismissal without just cause or excuse.

Annual Leave

From 1 April 2019, annual leave entitlement, subject to the limits imposed under the EA, will apply to all employees (which, as mentioned above, would include any employees who are currently non-EA Employees). Interestingly, even after 1 April 2019, only Part IV Employees are expressly permitted by law to carry over any unused statutory annual leave in any leave year for the next 12 months.

 

 

 

 

Edited by: Shreya Bhattacharya

Sajid Mir
ABOUT THE AUTHOR
Sajid Mir
A labor and employment lawyer at Replicon who specializes in global compliance. Replicon provides award-winning products that make it easy to manage your workforce. Replicon is an industry leader in global compliance and has a dedicated team which pro-actively monitors international labor regulations for ensuring proper adherence with specific country rule requirements.
Get started today.
Set up a free trial based on your business needs. Start Free Trial

Polaris Creates a New Category of Professional Services Automation

Introduces The World’s First Self-driving PSA, Delivering More Results with Less Hassle. Redwood City, CA – October 28, 2020.  – The Polaris PSA solution launched today, creating a new category…Read More

News from week beginning 19th October

By Steve Brooks - October 26, 2020 What a week, with both Workday and Sage Intacct holding conventions. Several PSA vendors announced new releases including a major update from FinancialForce.…Read More

Replicon Announces Time Intelligence Platform for Cloud-based Solutions from SAP for the Professional Services Industry

Replicon Time Tracking for Service Organizations Delivers a Single Source of Truth for Time. Replicon announced today that its Time Tracking for Service Organizations application is available for purchase on…Read More

Time and Attendance Orientation Guide

In a growing business, the day will eventually come when managing time and attendance on paper becomes both inefficient and risky, especially when trying to balance things like overtime, paid…Read More

Using shared services? These five technologies are a must

As organizations continue to scrutinize operating costs and look for areas to drive efficiencies, shared services centers (SSCs) are a no-brainer. The concept of a multi-function SSC has been around…Read More

Miscalculating wages by a few cents led to this company paying a six-figure lawsuit

West Marine Products, which operates a chain of retail stores across the United States specializing in boating supply and fishing equipment, recently settled a class action lawsuit involving 707 former…Read More
  • Polaris
  • Cloud
  • In The News
  • Corporate
  • Professional Services Management
  • Project and Program Management
  • Shared Services Management
  • Time and Attendance Management
  • Workforce Management
  • Customer Feature
  • Feature Update
  • Time Intelligence
  • Industry News
  • Webinar Recap
  • Global Compliance Updates