Amendment to Employment Act 2015
I have shared with the attendees of our recent event, SME solutions for Digital Transformation, on the recent changes on the Employment Act 2015 and thought that it would be beneficial to share with everyone on this.
On 17 Aug 2015, the amendment to Employment Act was passed by parliament. There are 3 main changes namely:
· Itemised payslips
· Key employment terms (KETs)
· Keeping employment records
Why was these changes introduced?
One of the incidents that led to these changes happened on 7 Feb 2012.
A group of 200 disgruntled foreign workers went on a seven-hour sit-out on Monday morning in Tampines over a dispute of unpaid salaries.
Instead of starting work at 8 am, Bangladeshi workers at a construction site gathered in an empty field at Tampines Industrial Street 62. The workers have not been paid for four months running, since November last year. They were also unhappy about the quality of the food served in the canteen.
For more details, please click on https://sg.news.yahoo.com/bangladeshi-workers-stage-sit-out-over-pay-dispute.html
What are the amendments trying to do?
There are 3 major changes to the employment act namely: itemized payslips, key employment terms and keeping employment records.
My view of the matter is that the authorities wants the following:
a. Employment terms set out in writing so that there is no ambiguity
b. Itemized payslips allows quick check on whether the terms in the KET has been adhered to
c. Keeping of employment record to allow authorities to investigate up to 2 years.
Now to the specifics…
Key Employment Terms requires the following key points to be included in any contract with the staff.
- The duties and responsibility of the employee
- Working Hours
- Salary Package (including OT pay, etc)
- Leave and other benefits
KET should be issued before the start of employment but no later than 14 days from employment. It is also good practice to get the staff to sign on the KET to acknowledge his/her acceptance of the KET.
Itemized payslips requires the following information to be included:
a. Name of the contracting parties (employer and employee)
b. Duties and responsibility of the employee
c. Working hours (daily, weekly, monthly)
d. Salary details (period, allowance/deductions, overtime hours, overtime amount and overtime period)
e. Nett amount to be paid to the employee.
Employee records to be kept includes:
a. Employee details (particular, address, etc)
b. Salary records (same as itemized payslips)
c. Leave records
Employers should keep a minimum of 2 years of employment records.
For the full presentation, please click here to download.
By Steve Koh
AG Net Pte Ltd
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