All information in this Guide is correct as of March 2014. However, this Guide is not a complete statement of the law and may not cover the requirements in other legislation on a particular issue. It should also be noted that the information is written in general terms as a guide for employers and employees and may not be applicable in a specific situation. For specific legal advice, you should ek professional legal assistance. Whilst every effort has been made to ensure that the information provided is correct and up-to-date, no warranty is given that it is free from error or omission.
Table of ConTenTs
InTroduCTIon
summary of The Key Changes To The employmenT aCT
beTTer proTeCTIon for more WorKers
Coverage of Managers and Executives
Protection for Non-Workmen under Part IV of the Employment Act
Authorid Deductions
Retrenchment Benefits
Transfer of Employment
Tripartite Guidelines on Issuance of Itemid Payslips flexIbIlITy for employers
Overtime Payment
Unfair Dismissal Redress for Managers and Executives
Time-off-in-lieu for Managers and Executives
Employers’ Sick Leave Obligations for Cosmetic Treatments enhanCed enforCemenT and ComplIanCe WITh
employmenT sTandards
Incread Penalties for Employment Act Offences
Presumption Clau for Corporate Officers
Powers of Employment Inspectors noTes 235 578891011 11131415 17 17181819
prefaCe
This guide provides information on the key changes to the Employment Act, which will come into effect from 1 April 2014, unless otherwi stated. If you require further information, plea visit the MOM website v.sg or call 6438 5122.
b Flexibility for Employers
•The overtime rate payable to non-workmen earning up to $2,500 basic monthly salary will be capped at the basic monthly salary level of $2,250.
•Managers and executives earning a basic monthly salary of up to $4,500 will need to have rved with the same employer for at least 12 months to be eligible to ek redress against unfair dismissal where notice is given.1
•Employers will be allowed the additional option to grant time-off-in-lieu to managers and executives who are required to work on a public holiday. This is an alternative to paying the employee an extra day’s salary at the basic rate of pay in addition to the gross rate of pay for that holiday, or mutually agreeing to substitute the public holiday for any other day.
•Employers will not be obliged to grant paid sick leave nor bear the medical consultation costs for cosmetic consultations and procedures of employees. The asssment as
to whether a treatment is cosmetic or not would be bad on the opinion of the doctor performing the examination and who provided the medical certificate.
How does this change benefit managers and executives?
Currently, managers and executives earning a basic monthly salary of up to $4,500 are protected for salary payment under the Employment Act. With the extension of coverage, managers and executives will now be protected under the general provisions of the Employment Act, including sick leave and public holiday benefits. They may also have their employment claims adjudicated by the Commissioner for Labour, and ek redress against unfair dismissal. The change will benefit approximately 300,000 professionals, managers and executives.
Why are managers and executives not covered under Part IV of the Employment Act?
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