THE EMPLOYMENT ACT

Act covers every employee under contract of service

with an employer.
employer
It governs the minimum employment terms & conditions of
employees under a contract of service.
Excludes:
ƒ seamen
ƒ domestic
d ti workers
k
ƒ Statutory board & government employees
ƒ managers 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 labour
Includes:
ƒ skilled or unskilled manual worker
ƒ those supervising workmen and performing manual work
ƒ those in First Schedule of Employment Act
Excludes:
th
those holding
h ldi managerial/executive
i l/ ti positions
iti with
ith direct
di t
authority/influence in hiring/firing, promotion, transfer,
reward/discipline of employees,
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 Workman
Basic monthly salary $2,000
$2 000 & below Basic monthly salary $4,500
$4 500 & below

You will be covered for the following provisions under the EA:
ƒ Salary payment
ƒ Hours of work
ƒ Si k lleave
Sick
ƒ Annual leave
ƒ Public holidays
ƒ Notice period for termination
If you are covered under the EA:
Non-workman Workman
B i monthly
Basic thl salary
l above
b $2,000
$2 000 Basic
B i monthly
thl salary
l above
b $4,500
$4 500

You will be covered for the following provisions under the EA:
ƒ Salary payment
ƒ Sick leave
ƒ Public holidays
ƒ Notice period for termination
 Employment Act

Contract of service and termination of contract

What is a contract of service?
Agreement oral/writing between “employer” and “employee”
Contract for service?
Not employer-employee relationship. Usually independent
contractor
Termination of contract of service
ƒ notice to other party or payment in lieu
ƒ either party may waive notice
 Employment Act

Notice of termination of service

If contract of service is silent as to notice period, then notice
required
q as follows:
ƒ 1 day’s notice if employed less than 26 weeks
ƒ 1 week’s notice if employed
p y more than 26 weeks but less
than 2 years
ƒ 2 week’s notice if employed 2 years or more but less than
5 years
ƒ 4 week’s notice if employed more than 5 years
 Employment Act
Breach of contract of service
B employer
By l - failure
f il pay salary
l within
i hi 7 days
d after
f dued date
d
By employee - absent from work for more than 2 working
days continuously without
ih approval/informing
l/i f i employer
l
Action by employer when employee misconducts
ƒ Inquiry
ƒ If found guilty, employer can
dismiss employee downgrade suspend not more than 1 week
If 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
unfairly
f i l dismissed?
di i d?
ƒ Appeal to MOM to be reinstated to former employment
ƒ Appeals l must be b maded in
i writing
i i within
i hi 1 monthh off
dismissal
ƒ MOM will ill iinvestigate
ti t and d if dismissal
di i l without
ith t just
j t cause
or excuse, the company will be required reinstate or
compensate employee
 Employment Act

Unjust Dismissal
Stansfield 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 1
month’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
Minister concluded
l d d no misconduct
i d established
bli h d andd dismissal
di i l
unjust.
Stansfield
fi ld applied
li d for
f judicial
j di i l review
i against
i Minister’s
i i
decision.
Held:
Procedures adopted by MOM were wrong and in breach of
natural justice.
 Employment Act

Salary - all remuneration payable to employee,

not including:
ƒ accommodation, lights, water, medical, provident fund,
pension,
i transport, gratuity,
i retirement
i benefits
b fi
Base rate of pay
Total amount of money employee entitled to either for time
period (hourly, daily, weekly) or for completed task (does not
include O/T or bonus)
 Employment Act
How often should employee be paid salary?
ƒ At least once per month
month, within 7 days after end of salary
period
ƒ overtime ppayy to be ppaid within 14 days
y after end of pperiod
When to pay salary after termination of service contract?
ƒ If dismissed for misconduct - on last dayy of employment
p y
or within 3 working days from dismissal date
ƒ If employee resigns - on last day employment
ƒ If employee leaves without notice - within 7 days from last
day employment
 Employment Act

Salary can be deducted under Act for:

ƒ absence from work
ƒ damage/loss of employer
employer’ss goods
ƒ cost of meals supplied at employee’s request
ƒ h i supplied
housing li d
ƒ recovery of advances/loans installment
ƒ income tax/CPF payments etc.
 Employment Act
ƒ Advances can be recovered in installments by
d d i
deductions from
f salary
l spreadd over not more than
h
12 months
ƒ No installments shall exceed one quarter of salary
due for the period in respect of which deduction is
made
 Employment Act
- Section 33 Part IV

• Hours of Work Applicable only to:

• Overtime • All Workmen (earning not
more than $4,500 per
• Rest Dayy
month)
th)
• Public Holidays • Other employees earning
• Annual leave not more than $2,000 per
• Sick Leave month
Excludes
• Retrenchment 1. bonus,
Benefit 2. AWS,
3. productivity incentives, and
• Retirement Benefit 4. allowances
• AWS, Bonuses
 Employment Act
- Part IV

Rest Days
ƒ 24 hrs. (Sunday or other rostered day)
ƒ 30 hrs. for shift workers
ƒ longest possible interval between 2 rest days = 12 days
Hours of work
ƒ period employee expected carry out duties assigned
ƒ not to include intervals for rest, tea, meal breaks
 Employment Act
- Part IV
Normal hours of work limit
ƒ 8 hrs.
h per day
d or 44 hrs.
h per weekk
ƒ if 5 day week, not more than 9 hrs. per day or 44 hrs. per
week
ƒ by agreement, if 1 week less than 44 hrs., following week
more than 44 hrs.,
hrs but max.
max 48 hrs.
hrs or total 88 hrs.
hrs in
continuous 2 weeks
ƒ if above hours exceeded,
exceeded O/T pay of min
min. 11.5
5 times hourly
basic rate of pay
 Employment Act
- Part IV
Shift worker’s working hours
ƒ Max.
Max 12 hrshrs. per day provided average working hours on
any continuous 3 week period not exceeding 44 hours per
week
Non shift worker
Non-shift
Can work up to 12 hrs. a day, provided:
ƒ Employee
Employee’ss written consent
ƒ Employer prepares monthly roster, informing of rest days
if these not Sundays
ƒ O/T allowance
ll paid
id if more than
th average off 44 hrs.
h a weekk
over continuous 3 week period
 Employment Act
- Part IV
Break & Meal times Max. no. of hrs. a day
ƒ Not
N requiredi d workk more Employee not allowed work
than 6 hrs. without break more than 12 hrs. daily
(including O/T) except:
ƒ If required work more
ƒ Accident
than 8 hrs. continuously,
ƒ Work essential to life, national
to be given meal break d f
defence/security
/ it
(not less 45 mins.) ƒ Urgent work on machinery
ƒ Shift worker not allowed work
more than 12 hrs. daily
 Employment Act
- Part IV
Payment of O/T allowances
ƒ To be paid within 14 days of last day of salary period
ƒ Rate not less than one and half times hourly basic rate
Computations:
Hourly basic rate for monthly-rated employee
12 X monthly basic rate of pay
52 X 44
Hourlyy basic rate for daily
y rated
Daily pay at basic rate
Working hrs. per day
 Employment Act
- Part IV
Hourly basic rate for piece-rated employee
T l weekly
Total kl pay at basic
b i rate off pay
Total no. of hrs. worked in week

O/T pay is:

Hourly basic rate of pay x 1.5 x no. of O/T hrs. worked
Max. hrs. of O/T work is 72 hrs. a month
 Employment Act
- Part IV
Public holidays Annual leave
ƒ 11 gazetted holidays ƒ After
Af workingki at least
l 3
ƒ If public holiday on employee’s months, entitled annual
rest/off day, next working day
is paid holiday leave from 7 – 14 days
ƒ Employer can either ƒ Calculation of pro-rated
compensate
co pe sa e with
w extra
e a day’s
day s annual leave
pay or give another off day
ƒ Monthly-rated employee not
entitled to holiday
holida pay
pa if absent
day before/after holiday
 Annual leave
Number of days of leave depends Year of service Days of leave
on what is stated in 1st 7
employment contract but should 2nd 8
not be less than the
3rd 9
following (see table):
4th 10
5th 11
6th 12
7th 13
8th and 14
thereafter
h f
 Employment Act
- Part IV
Forfeiture of annual leave if:
ƒ Absent without permission for more than 20% of working
days in month/year
ƒ Fails take leave within 12 months after the end of everyy 12
months’ continuous service
ƒ Dismissed for misconduct
If service terminated before consuming annual leave
ƒ Employer to pay for unconsumed leave
Leave taken on Saturday
ƒ Considered as full day’s leave but employer can decide
other computation method.
method
 Employment Act
- Part IV
Annual entitlement of sick leave
ƒ 14 days where no hospitalisation needed and up to 60
days if needed
Employee
p y entitled to p paid sick leave if:
1. Served at least 3 months. Entitlements from fourth to
sixth month will be phased in.
2. Sick leave certified by Co.’s doctor/Govt. doctor
3. Informed/tried inform employer of absence within 48
hrs.
hrs
ƒ Employer is required to pay minimally the medical
consultation fees
 Employment Act
- Part IV
Salary calculation
Incomplete month of work where employee:
ƒ Starts work after first day of month
ƒ Resigns before last day of month
ƒ On no-pay leave for one or more days during month
ƒ On reservist training during month
Formula for salary payable to monthly-rated employee for
incomplete
p month off work
monthly gross rate of pay x total no. of actual days
Total no. of working days in month worked in that month
 Employment Act
- Part IV

Use of basic rate pay Use of gross rate pay

ƒ Work on rest day ƒ Salary
S l i lieu
in li off
termination notice
ƒ Work on ppublic ƒ Salary deduction for
holiday unauthorised absence from
ƒ Outpatient sick leave work
ƒ Paid public holidays
ƒ Approved paid leave
(annual, hospitalisation,
maternity leave)
 Employment Act
- Part IV

What is “productivity incentive payment”?

Variable payment as reward for:
ƒ Improvement in employee
employee’ss performance
ƒ Increase in employee’s productivity/contribution
ƒ Shift andd attendance
tt d allowances
ll nott under
d this
thi
category
 Employment Act
- Part IV
Retrenchment benefits to be given to:
ƒ Retrenched
R h d employee
l with
i h 3 years’’ continuous
i service
i
ƒ Quantum not stipulated in Act
ƒ Quantum to beb negotiated
i d between
b employee
l andd employer
l
or found in contract
R ti
Retirementt benefits
b fit tto b be given
i tto:
ƒ Employee with not less than 5 years’ continuous service
ƒ CPF contributions
t ib ti obviated
b i t d needd for
f retirement
ti t benefits
b fit
ƒ Retirement age raised to 62 years w.e.f. 01/01/99
 Employment Act
- Part IV
AWS, Bonuses, and Annual Wage Increases:

It is a contractual obligation of the

employer
l to
t pay if these
th are provided
id d
for:
• in the employment contract or
• collective agreement
 MATERNITY PROTECTION &
BENEFITS
(1 O
October
t b 2004)
Employment Act (EA)
- Part IX
OR
Children Development Co-
Co-Savings Act (CDCA)
- Section 9
 MATERNITY PROTECTION &
BENEFITS

Under CDCA, employee entitled to 16 weeks maternity leave

if she
h meets following
f ll i qualifying
lif i conditions:
di i
ƒ Her child is a Singapore citizen
ƒ The child’s parents are lawfully married; and
ƒ S
Shee has
as worked
wo ed foro employer
e p oye for
o co
continuous
t uous
duration of at least 90 days before birth of child
 MATERNITY PROTECTION &
BENEFITS

Under EA where employee not in managerial or

executive position, but is either not married or if
g p
child not a Singapore citizen,, she entitled to 12
weeks maternity leave for birth of 1st/2nd child.
However only first 8 weeks leave paid by employer.
However, employer
 MATERNITY LEAVE OF
ABSENCE

12 weeks
k

under EA:
• If mother either not
married
i d or child
hild nott
Singapore citizen
•for birth of 1st or 2nd child
•Only first 8 weeks paid by
employer
 CONSUMPTION OF
MATERNITY LEAVE
Option A
ƒ 4 weeks immediately before confinement and
ƒ 8 weeks immediatelyy after confinement

4 weeks 8 weeks

Confinement
Date
 CONSUMPTION OF
MATERNITY LEAVE (cont’d)
( t’d)
Option
O ti B
ƒ A period of 12 weeks commencing on the day of
confinement or commencing within 28 days
immediately preceding confinement
Commencement date

28
days Confinement
Date

12 weeks
12 weeks
12 weeks
 CONSUMPTION OF
MATERNITY LEAVE (cont
(cont’d)
d)
Option C
• A first period of 8 weeks; and a further period
equivalent
i l t tot 4 workk weeks,
k b butt nott more than
th 24
days in aggregate, to be taken in one or more periods
within 6 months after the confinement

Confinement Date
28 days 6 months

8 weeks Not more than 24 days

in one or more periods
Unconsumed benefits will be forfeited if
employee leaves employment (for any
reason)
 EMPLOYER’S OBLIGATION
- PAID MATERNITY LEAVE
Under EA

ƒ 8 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 agreement
 CHILDCARE LEAVE

Under CDCA, if employee (both fathers and

mothers) satisfies following conditions,
conditions entitled to 6
days enhanced childcare leave benefit:
ƒ Child below 7 years old
ƒ Child (including adopted and stepchild) is Singapore
citizen
ƒ Child’s parents lawfully married
ƒ Employee worked for employer at least 3 months
ƒ Parent need not be Singapore citizen as long child is
ƒ 4th to 6th day childcare leave reimbursed by government
 CHILDCARE LEAVE

ƒ Under EA, If child not a Singapore citizen, the PR

or foreigners
f i who
h are coveredd under
d EA andd meets
qualifying conditions of 3 month’s service with
employer,
l is
i entitled
i l d to 2 days
d childcare
hild leave
l per
year if he/she has child below 7 years old
ƒ The 2 days childcare paid by employer and not
claimable from government
CHILDCARE LEAVE (cont’d)
¾ unused leave lapses at the end of
entitlement year

¾ no encashment

¾ cannot offset against notice

¾ part-year employment = Full-year

entitlement
 Employment Act

Contractor and contracting

ƒ Main
M i contractor or principal
i i l jointly
j i l andd severally
ll
responsible with sub-contractor for salary of
workman employed by sub-contractor
sub contractor
ƒ Main contractor is liable for up to salary earned in
a month
ƒ Workman must lodge claim with Commissioner
for recovery of salary within 60 days from due
date
 Employment Act
Employment of children and young persons
Child - under 15 y
years of age
g
Young person (YP) - Aged 15 years or above but under 16 years of age
Min. age for employed child = 13 years
Restriction on types of work for child/YP
ƒ Light work for child
ƒ YP can work in industrial undertaking but has to be certified fit for
employment and the Commissioner to be notified
ƒ Both child & YP cannot be employed in occupation injurious to health,
service involving machinery, live electrical appliances or underground
work
 Employment Act

Conditions & Restrictions governing hours of

W k ffor children
Work hild and
d YP
ƒ Not allowed work at night between 11 p.m. to 6 a.m,
during their rest days,
days or employed in underground
work.
ƒ 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
ƒ Child:
z can only work in non
non-industrial
industrial undertaking
z can work in industrial undertaking where family
members are employed
z can work k on a vessell if vessell under
d controll off his
hi
parent
ƒ If 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 under
technical,
approved apprenticeship scheme supervised by MOE or
ITE
 Employment Act

Claims, complaints and investigations into offences

Employee/employer may lodge claim on salary matters with
MOM provided:
ƒ Employee covered by Employment Act
ƒ Claim pertains to matters that arose not more than 1 year from date
claim made
ƒ If employee
p y resigned,
g , claim must be lodged g within 6 months from date
left employment
ƒ Commissioner may investigate and order either party pay or dismiss
claim
ƒ Decision final but dissatisfied party may appeal to High Court within
14 days
 Employment Act

Claim fees
ƒ $3 for employee
ƒ $20 for employer
Penalties for infringing any provision of Employment Act
ƒ Fine of up to $1,000 (per infringement);
ƒ For the second or subsequent offence, fine of $2,000
and/or imprisonment.
The employer’s work pass applications/renewal may also be
rejected.