Key Employment Act amendments

Transcription

1 A Great Workforce A Great Workplace Key Employment Act amendments 22 November 2018 A Great Workforce A Great Workplace Government of Singapore 1 Employment Act (EA) balances employee protection with business requirements Singapore s main employment law: provides basic terms and working conditions for, while balancing business requirements Part IV provides additional protection for more vulnerable workers Provides working hours-related protection e.g. hours of work, rest day, OT payments Covers workmen i.e. manual workers up to $4,500; non-workmen up to $2,500 Excludes managers and executives (M&Es) whose work are outcome-based Government of Singapore of 2 SNEF & SBF Participants only 1

2 Employment Act (EA) balances employee protection with business requirements Bill to amend the EA passed in Parliament on 20 Nov 2018 In everything we do, Tripartite partners strive to be pro-worker and probusiness. This has been a cornerstone guiding employment practices in Singapore that has served us well Josephine Teo (Minister for Manpower), EA Second Reading, 20 th Nov 2018 Through strong tripartite collaboration, we have managed to address many of the key concerns of both employers and in this review Douglas Foo (Vice-President, SNEF), EA Second Reading, 20 th Nov 2018 The Act is an embodiment of the delicate balancing of tripartite concerns to maximise labour force participation while ensuring that workers rights are protected and balanced against the employers need to stay competitive to create good jobs for workers Patrick Tay (Assistant Secretary-General, NTUC), EA Second Reading, 20 th Nov Government of Singapore of 3 Timely to update EA given changes in workforce and employment practices Key Thrusts 1. Extension of core provisions of the EA to protect all 2. Extension of Part IV of the EA to protect more 4. Enhancement of the employment dispute resolution framework 3. Enhanced flexibility for employers Government of Singapore of 4 SNEF & SBF Participants only 2

3 Employment Act Key changes Key Thrusts 1. Extension of core provisions of the EA to protect all 2. Extension of Part IV of the EA to protect more 4. Enhancement of the employment dispute resolution framework 3. Enhanced flexibility for employers Government of Singapore of 5 To extend core provisions to all, including managers and executives earning > $4,500 EA covers all, except managers and executives (M&Es) earning > $4,500 EA covers all 430,000 more M&Es will be covered for core provisions of the EA: Minimum days of annual leave Paid public holidays Paid sick leave Timely payment of salary Statutory protection against wrongful dismissal Government of Singapore of 6 SNEF & SBF Participants only 3

4 To extend core provisions to all, including managers and executives earning > $4,500 Core provisions of the EA cover all, except managers and executives earning above $4,500/ month. $4,500/month salary cap removed, extending coverage under the EA to all Indicates coverage Extending core provisions to all Coverage Workmen E.g. cleaners, labourers Non-Managers & Executives Non-Workmen E.g. clerks, receptionists Managers & Executives $4,500 New Coverage Government of Singapore of 7 Extend annual leave entitlements to all Part IV entitled to: i days of annual leave; and ii. 1-year carry forward of leave All entitled to: i days of annual leave (1-year carry forward of leave only for Part IV ) Annual leave is well-established industry norm However, significant impact to business liabilities if employers required to carry forward unused leave to the next year for all Government of Singapore of 8 SNEF & SBF Participants only 4

5 Employment Act Key changes Key Thrusts 1. Extension of core provisions of the EA to protect all 2. Extension of Part IV of the EA to protect more 4. Enhancement of the employment dispute resolution framework 3. Enhanced flexibility for employers Government of Singapore of 9 Half of total workforce to enjoy additional provisions under Part IV Part IV covers o Non-workmen $2,500 o Workmen $4,500 Overtime rate payable for non-workmen capped at $2,250 Part IV covers: o Non-workmen $2,600 o Workmen $4,500 Overtime rate payable for non-workmen capped at $2,600 Changes will benefit 100,000 more Government of Singapore of 10 SNEF & SBF Participants only 5

6 Part IV salary threshold for non-workmen increased to $2,600 Part IV of the EA covers: o Workmen earning up to $4,500/month; and o Non-workmen earning up to $2,500/month. Overtime rate payable capped at $2,250/month Part IV of the EA covers: o Workmen earning up to $4,500/month; and o Non-workmen earning up to $2,600/month. Overtime rate payable capped at $2,600/month Non-Managers & Executives Workmen Non-Workmen Indicates coverage E.g. cleaners, labourers E.g. clerks, receptionists $4,500 $2,500 Additional protection coverage $2,250 Coverage Managers & Executives New Coverage $2, Government of Singapore of 11 Employment Act Key changes Key Thrusts 1. Extension of core provisions of the EA to protect all 2. Extension of Part IV of the EA to protect more 4. Enhancement of the employment dispute resolution framework 3. Enhanced flexibility for employers Government of Singapore of 12 SNEF & SBF Participants only 6

7 Employers option to give time off for working on a public holiday to be extended to more For all workmen and non-workmen, employers have two options for compensation for work on a public holiday: - Extra day s salary; or - A full-day off For workmen earning $4,500/month, and nonworkmen earning $2,600/month, employers have two options for compensation for work on a public holiday: - Extra day s salary; or - A full-day off For M&Es earning up to $4,500/month, employers have three options for compensation for work on a public holiday: - Extra day s salary; or - A full-day off; or - Time off (less than full day) For all M&Es, workmen earning > $4,500/month, and non-workmen earning > $2,600/month, employers have three options for compensation for work on a public holiday: - Extra day s salary; or - A full-day off; or - Time off (less than full day) Provide flexibility to employers to give time off for selected to work on public holidays Ensures existing protection for under Part IV of the EA Government of Singapore of 13 Adopt a less prescriptive approach for authorised deductions from an employee s salary No deductions can be made from an employee s salary other than those prescribed in the EA Deductions can be made from an employee s salary with employee s written consent Employer to enable employee to withdraw consent at any time without penalty The EA will be extended to higher-earning M&Es. They might have other types of deductions not specified in the EA. This amendment will: i. Give employers the flexibility to cater for such deductions; and ii. Ensure salaries are safeguarded as they need to consent, and can withdraw consent for such deductions Government of Singapore of 14 SNEF & SBF Participants only 7

8 Employment Act Key changes Key Thrusts 1. Extension of core provisions of the EA to protect all 2. Extension of Part IV of the EA to protect more 4. Enhancement of the employment dispute resolution framework 3. Enhanced flexibility for employers Government of Singapore of 15 Shift adjudication of wrongful dismissal claims to ECT Salary issues heard at TADM/ECT while wrongful dismissal claims heard by Min Both salary issues and wrongful dismissal to enjoy one-stop service at TADM/ECT MOM will publish a set of Tripartite Guidelines on Wrongful Dismissal to illustrate what constitutes wrongful dismissal Government of Singapore of 16 SNEF & SBF Participants only 8

9 Examples of what constitutes wrongful dismissal Discrimination based on employee s age, gender, disability, family responsibilities, nationality, pregnancy, race or religion. Deprivation of benefits/entitlements such as deprivation of statutory maternity benefits; deprivation of bonus entitlements. Employer s desire to punish employee for exercising a right such as being dismissed after submitting a mediation request to MOM. Illustrative example Employer prefers a person of a different race to be his employee Employer dismisses employee even though he performed satisfactorily at work. Dismissal was due to discrimination on ground of race Illustrative example Employer dismisses a female employee upon being informed of her pregnancy Employee has performed satisfactorily at work Employer also did not pay the employee her maternity benefits Dismissal was done with a view to depriving her of her maternity benefits Illustrative example Employer dismisses employee upon discovering that he reported company to MOM for an EA offence Employee has performed satisfactorily at work. Dismissal due to employer s desire to punish the employee Government of Singapore of 17 Examples of dismissals that are not wrongful Poor performance If employee does not do his or her job to the required standards Illustrative example Employer dismisses an employee because the his performance at work has been unsatisfactory. The employee s dismissal is not wrongful, as poor performance is a legitimate reason for dismissal. Redundancy Employer has excess manpower, or company is undergoing restructuring Illustrative example Employer s business undergoes restructuring and as a result, an employee s job no longer exists. Employer dismisses employee on ground of redundancy. Employee s dismissal is not wrongful, as redundancy is a legitimate reason for dismissal. Misconduct e.g., theft, engaged in dishonesty Illustrative example After due inquiry, employer establishes that employee stole a laptop belonging to the employer. Employer dismisses the employee without notice because of employee s misconduct. Such dismissals due to misconduct are not wrongful Government of Singapore of 18 SNEF & SBF Participants only 9

10 Reduce service period for M&Es to qualify for wrongful dismissal protection M&Es who are dismissed with notice can appeal to Minister if they have served employers 12 months M&Es who are dismissed with notice can appeal to ECT if they have served employers 6 months Wrongful dismissal can happen at any time Taking in employers views, tripartite partners agreed to shorten qualifying period for M&Es Government of Singapore of 19 Employment Act Other Amendments Extension of core provisions of the EA to protect all Extension of Part IV of the EA to protect more Other Amendments to the Employment Act Enhancement of the employment dispute resolution framework Enhanced flexibility for employers Government of Singapore of 20 SNEF & SBF Participants only 10

11 Recognise MCs from all doctors Workers certified unfit for work by government doctors and dentists and company approved doctors must be recognised Workers certified unfit for work by any registered doctor and dentist must be recognised Not amended since 1968 o Frequent absences on fictitious MCs; needed to specify which doctors MCs can be recognised Today, all doctors empowered by Medical Registration Act to issue MCs o Singapore Medical Council Ethical Code and Ethical Guidelines guide MC issuance Gives flexibility to see doctors nearer their homes Government of Singapore of 21 No change to policy for reimbursement of medical consultation fees Employers required to reimburse consultations fees by (i) government doctors; or (ii) company-approved doctors if MC results in paid sick leave Fees at government medical/healthcare institutions regulated by MOH and kept affordable. Employers free to appoint own panel doctors and negotiate consultation fees payable. Tripartite consensus no need to extend reimbursement of medical consultation fee beyond this Government of Singapore of 22 SNEF & SBF Participants only 11

12 Clarify hospitalisation leave entitlement Today, some non-hospital doctors may issue MCs for hospitalisation leave for conditions that do not require hospitalisation (e.g. sprains) Provision on hospitalisation leave clarified to cover period where employee is: a) Warded in a hospital b) Needs rest or further medical treatment in order to recover after discharge c) Ill enough to require hospitalisation, but is not warded d) Quarantined under any written law Government of Singapore of 23 Allow Minister to make regulations to protect entitlements and wellbeing No provision in the EA Minister for Manpower can make regulations to protect from any employment practices that may adversely affect their wellbeing For example, prohibit employers from asking to: sign salary vouchers before receiving salaries; or sign on blank salary vouchers Enhances MOM s regulatory framework to respond to possible new forms of undesirable employment practices Government of Singapore of 24 SNEF & SBF Participants only 12