Employment Bill Changes in Singapore
Amendments to Employment Bill – Ministry of Manpower (MOM) announced in 2014 that the Ministry would require employers to issue itemised payslips and key employment terms (KETs) in two years.
MOM intends to effect these new requirements on 1 April 2016, and all employers are required to comply with the new requirements with effect from this date. Employers should start preparing for compliance now.
Summary of key proposed changes to the Employment Bill:
1. Itemised payslips
Employers are required to provide itemised payslips to all their employees covered under the Employment Act (EA) together with their salary payments. Employers may choose to issue the payslips in soft or hard copy, as long as they reflect the required breakdown of items; as well as the ability to consolidate payslips if payments are made more than once a month.
For more information on Requirements for Itemised Payslips, please click here.
2. Key Employment Terms (KETs)
Employers are required to provide written KETs to all employees covered under the EA with continuous employment of at least 14 days with the company. Employers will have some flexibility in how they provide the KETs as long as the required items are clearly accessible.
For more information on Requirements for KETs, please click here.
Administrative Penalty Framework
MOM will also set up a framework to treat the less severe breaches as “civil breaches” which attract administrative penalties. For a start, the breaches will include:
(i) Failure to provide itemised payslips
(ii) Failure to provide written KETs
(iii) Failure to keep detailed employment records
(iv) Provision of inaccurate information without fraudulent intent to the Commissioner for Labour or inspecting officers
Other breaches of the EA which relate to provisions safeguarding employment standards will remain criminal offences.