Singapore’s Employment Act (Chapter 91) serves as the primary legislation governing employment relationships in the country. It establishes the basic minimum terms and conditions of employment, providing a crucial framework for both employers and employees. While employment contracts can offer terms exceeding these minimums, a thorough understanding of the Act is vital for ensuring fair treatment, maintaining harmonious workplaces, and ensuring legal compliance. This article delves into the key rights and obligations outlined in the Singapore Employment Act.
Employee Rights under the Singapore Employment Act:
It’s important to understand who is covered. Generally, the Act covers all employees under a contract of service, regardless of salary level, except for seafarers, domestic workers, and public officers/statutory board employees.
However, Part IV of the Act, which provides additional protections relating to hours of work, rest days, and overtime pay, only applies to:
- Workmen (e.g., manual labourers or blue-collar workers) earning a basic monthly salary of up to S$4,500.
- Employees (who are not workmen, managers, or executives) earning a basic monthly salary of up to S$2,600. (Note: These salary thresholds are subject to change; always verify the current figures with the Ministry of Manpower – MOM).
Crucially, managers and executives (M&Es), while excluded from Part IV benefits, are still covered by the core provisions of the Act concerning salary payment, statutory leave (like annual and sick leave), public holidays, protection against wrongful dismissal, and the requirement for Key Employment Terms (KETs).
Key Employee Rights under the Singapore Employment Act:
1. Salary Payment:
Employees have the right to be paid their salary accurately and punctually. The default is payment at least once a month, within 7 days after the salary period ends. Deductions from salary are strictly regulated and generally only allowed for specific reasons like absence from work, damage/loss caused by the employee (after inquiry), or with employee consent for amenities/services.
2. Working Hours, Overtime, and Rest Days:
For employees covered by Part IV, standard working hours are generally limited (e.g., up to 44 hours per week). Work exceeding these hours typically qualifies for overtime pay, calculated at least 1.5 times the hourly basic rate. These employees are also entitled to at least one rest day per week (usually Sunday), which should be uninterrupted.
3. Public Holidays:
Employees are entitled to paid public holidays (currently 11 per year). If required to work, compensation is typically an extra day’s salary or time off in lieu, depending on the agreement and applicability of Part IV.
4. Annual Leave:
Employees serving for at least 3 months are entitled to paid annual leave. The minimum entitlement starts at 7 days for the first year of service and increases by one day per year, up to a maximum of 14 days. This is the statutory minimum; contracts can provide more.
5. Sick Leave & Hospitalisation Leave:
After 3 months of service, employees are entitled to paid outpatient sick leave (typically up to 14 days per year). After 6 months, they are entitled to paid hospitalisation leave (typically up to 60 days per year, including the 14 days of outpatient sick leave). A medical certificate from a registered practitioner is required.
6. Maternity and Paternity Leave:
Eligible female employees are entitled to paid maternity leave, and eligible male employees (who are Singapore citizens) are entitled to paid paternity leave under the Act and related legislation (Child Development Co-Savings Act). Eligibility often depends on factors like citizenship and length of service.
7. Protection Against Wrongful Dismissal:
The Singapore Employment Act requires employers to provide notice periods (or pay in lieu) for termination, as stipulated in the contract or by law if unspecified. Since 2019, employees (including M&Es with at least 6 months’ service) are protected against wrongful dismissal (dismissal without just cause or excuse). Employees can seek recourse via the Tripartite Alliance for Dispute Management (TADM) and the Employment Claims Tribunals (ECT).
Employer Obligations under the Singapore Employment Act:
1. Providing Key Employment Terms (KETs) and Itemised Payslips:
Employers must issue written KETs (covering essential terms like job title, duties, salary, working hours, leave, notice period) to all employees covered by the Act who start work on or after 1 April 2016. Itemised payslips must be provided at least once a month, detailing salary components, deductions, and payment dates.
2. Maintaining Employment Records:
Proper records must be kept for current and former employees (for specified periods) regarding employment details, salary, leave, etc.
3. Ensuring Workplace Safety:
While the Workplace Safety and Health (WSH) Act is the primary legislation, employers have a fundamental duty under common law and impliedly under the Employment Act to provide a safe work environment.
4. Contributing to CPF (Central Provident Fund):
Mandatory for employers in respect of their Singapore Citizen and Permanent Resident employees. Note: This generally does not apply to foreign employees on work passes like the Employment Pass or S Pass.
5. Adhering to Termination Procedures:
Following contractual and statutory requirements for notice periods, reasons for termination (especially if dismissing for misconduct, which requires due inquiry), and final salary payment.
6. Fair Treatment:
Adhering to principles of fair employment practices, often guided by the Tripartite Guidelines on Fair Employment Practices (TAFEP), although TAFEP itself is not legislation.
Singapore Employment Act: Importance of Compliance:
Non-compliance with the Singapore Employment Act can result in MOM enforcement actions, including directives, fines, and potentially prosecution. Reputational damage can also be significant. Employees have clear avenues for redress through TADM and the ECT.
Understanding the Employment Act is fundamental for fostering fair, productive, and legally sound employment relationships in Singapore. Given the nuances and periodic updates to the Act and related guidelines, seeking clarification from MOM or professional advice is recommended when in doubt. If you require assistance interpreting the Employment Act or navigating employment matters, the team at Little Big Employment Agency Pte Ltd can provide guidance.
Yours sincerely,
The editorial team at Little Big Employment Agency Pte Ltd