13 Things You Ought To Know About The Singapore Employment Act As A Business Owner
Last week I was chatting with a new client, whom we have just helped incorporate a new company in Singapore. He is planning to hire some staff later.
To my surprise, he was not conversant with the Singapore Employment Act.
Perhaps let me take this opportunity to share some top 13 pointers you ought to know about this Act as a business owner …
Here it goes…
1. Who it covers ?
* All employees under a contract of service with an employer are covered, but there are exceptions.
* For eg, Part IV of the Act which provides for rest days, hours of work, annual leave & other conditions of service, does not cover managers or executives.
2. What is the Employment Act?
* The Employment Act is Singapore’s main labour law.
* It provides for the basic terms & conditions at work for employees covered by the Act.
3. Foreign employees
* holding a work pass are also covered under the Employment of Foreign Manpower Act which outlines an employer’s responsibilities & obligations for employing foreigners.
4. Who is covered by the Act ?
* an employee working under a contract of service with an employer.
* covers local & foreign employees.
5. An employee can be employed in the following terms:
* Full-time
* Part-time
* Temporary
* Contract
6. An employee can be paid on the following basis:
* Hourly
* Daily
* Monthly
* Piece-rated
7. Part-timers
* If you work < 35 hours a week, you are a part-time employee covered by the Employment of Part-Time Employees Regulations.
8. Who are not covered by this Act ?
a) Manager or executive with monthly basic salary > $4,500
b) Seafarer
c) Domestic worker
d) Statutory board employee or civil servant
9. Who is covered under Part IV ?
* Part IV of the Employment Act, which provides for rest days, hours of work, annual leave & other conditions of service, only applies to:
a) A workman (doing manual labour) earning a basic monthly salary of < $4,500
b) An employee who is not a workman, but who is covered by the Employment Act and earns a monthly basic salary of < $2,500
c) Part IV of the Act does not cover all managers or executives
10. Basic salary excludes payment of overtime, bonus, annual wage supplement, productivity incentive payment, reimbursement for special expenses & all allowances.
11. Who is a manager or executive ?
* In general, managers & executives are employees with executive and supervisory functions.
* Their duties & authority may include one or all of the following:
a) Influencing or making decisions on issues such as recruitment, discipline, termination of employment, performance assessment and reward
b) Formulating strategies and policies of the enterprise
c) Managing & running the business.
d) include professionals with tertiary education & specialized knowledge or skills whose employment terms are like those of managers or executives. For eg, lawyers, accountants, dentists & doctors.
12. Who is a Workman ?
* Workman is someone whose work involves mainly manual labour.
This includes someone who falls under any of these categories:
a) Does manual work (including artisans & apprentices, but not seafarers or domestic workers)
b) Operates or maintains commercial vehicles with passengers
c) Supervises manual workers, but also performs manual work > 50% their working time
d) Has a job specified in the First Schedule of the Employment Act, namely:
* Cleaner
* Construction worker
* Laborer
* Machine operator and assembler
* Metal and machinery worker
* Train, bus, lorry and van driver
* Train and bus inspector
* Workman employed at piece rates at an employer’s premises
13. Common past violations of the Act
* Failure to provide employment terms and benefits in accordance to the Employment Act
* Failure to pay salaries to workers
If convicted, punishment includes both monetary fines + your company’s name will be published on the website of Ministry of Manpower.
So, be a good & responsible employer. Do not take chances. It’s not worth it.
Good Luck !
If you need help, feel free to contact us at :
(O) +65 63851011
(M) +65 90880669
