Key Employment Terms, a Ministry of Manpower Requirement
I was chatting with a new client on last Friday regarding the impending expansion of his business, & hence the need for his company to hire more staff.
He is currently hiring a pool of freelancers & sub-contractors to help him, as such, I brought up to his attention of the latest requirement by the Ministry of Manpower of Singapore. To my surprise, he was not too updated about it.
Here it goes …
Contract of Service :
* defines the employer-employee relationship, including the terms & conditions of employment ;
* Contract must include certain terms & essential clauses, such as hours of work and job scope.
What is a contract of service
* is an agreement in which:
a) One person agrees to employ another as an employee
b) The other person agrees to serve the employer as an employee
* Please take note :
To minimise disputes on the agreed terms & conditions, the contract should be in writing.
Key Employment Terms (KETs)
Wef 1 April 2016, all employers must issue KETs in writing to employees covered under the Employment Act.
Requirements :
Who ?
Employers must issue KETs in writing to all employees who:
* Enter into a contract of service on or after 1 April 2016
* Are covered by the Employment Act
* Are employed for 14 days or more. This refers to the length of contract, not the number of days of work
When ?
* < 14 days from the start of employment.
How ?
* Soft or hard copy, including handwritten.
* Common KETs, e.g. leave policy, medical benefits, can be provided in employee handbook or company intranet.
17 Items MUST BE included :
KETs must include the items below, unless the item is not applicable.
For example, if the employee is a PME & overtime pay does not apply, the KETs issued do not need to include items 11 to 12 :-
1. Full name of employer
2. Full name of employee
3. Job title, main duties and responsibilities
4. Start date of employment
5. Duration of employment (if employee is on fixed-term contract)
6. Working arrangements, such as:
* Daily working hours (e.g. 8.30am – 6pm)
* Number of working days per week (e.g. six)
* Rest day (e.g. Saturday)
7. Salary period
8. Basic salary
* For hourly, daily or piece-rated workers, employers should also indicate the basic rate of pay (e.g. $X per hour, day or piece)
9. Fixed allowances
10. Fixed deductions
11. Overtime payment period (if different from item 7 salary period)
12. Overtime rate of pay
13. Other salary-related components, such as:
* Bonuses
* Incentives
14. Type of leaves, such as:
* Annual leave
* Outpatient sick leave
* Hospitalisation leave
* Maternity leave
* Childcare leave
15. Other medical benefits, such as:
* Insurance
* Medical benefits
* Dental benefits
16. Probation period
17. Notice period
Please Do Not forget to issue above 17 KETs to your staff !
Good Luck !
If you need help, feel free to contact us at :
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