About the Benefits of Employment Act
The benefits of Employee Act are important when it comes to convincing an employee to do a job. The government of Singapore has enacted major amendments that impact businesses and employees that work for local and foreign companies under an employment contract in Singapore.
The amendments are meant to improve the conditions of employment by widening qualifying requirements in salary and job grades. The changes lead to every employee in the private sector to receive protection from the Employment Act (EA).
Here are the Employment Act amendments benefits:
1. Managers and Executive Salary
Managers and executives who have a basic salary of $4,500 a month are covered by the EA. They are currently not covered, but it will all change.
This means every employee in Singapore—except public officers, domestic workers, and seafarers—are covered for the minimum annual leave days, paid holiday and sick leave, salary paid on time, and protection against wrongful dismissal.
The domestic workers, seafarers, and public officers are still not covered by the EA. Their coverage is provided by different Acts because of the nature of their work.
2. Salary Deductions Will Be Limited
The Act will limit the kind of salary deductions that employees receive and the bill makes the Act redefine when employers can make deductions. This is one of the benefits of the Employment Act that employees look forward to.
The Bill allows a salary deduction for reasons like work absence, damages, loss of goods or money, accommodation, recovering advances, the services and amenities the employer provides, and loans or salary that has been overpaid.
Salary deductions can also happen if it was consented by the employee in writing. The employer can also withdraw the consent anytime without being penalized.
3. Public Holiday Compensation
All employees will now receive compensation. In the past, when employees were asked to work on a public holiday, they were either given an extra one day salary or a day off to compensate. Now, employers are allowed to give time off for the hours worked on a public holiday, instead of the full day.
Employees will still receive an extra pay equivalent to one day of work or an entire day off.
4. Medical Certificates Are Recognized
The medical certificates that doctors and dentists issue that are registered under the Medical Registration Act, 1997 and Dental Registration Act, 1999 are now recognized. In the past, it was only the Medical certificates from the government and doctors appointed by the company were recognized. This makes it easier for employees to consult with doctors that live closer to their home.
In addition, this makes it easier for employees to file for a hospitalization leave because they do not have to look for a specific doctor who was appointed. They can go to any hospital and get a medical certificate from them.
5. Wrongful Dismissal Will be Heard
Now, the definition of dismissing in the Act is contract termination of an employee or a service by the employer. This could be done with or without giving notice and because of misconduct or not. The Bill aims to widen the definition of “dismiss” in order to cover the times when an employee is forced to resign.
By redefining this, the employers are no longer allowed to disguise terminating employees by making them resign.
In mutual agreement to part ways, the employee’s consent must be documented carefully.
The pre-amendment disputes related to salary are handled by the Employment Claims Tribunal, and the wrongful claims of dismissal are brought to the Ministry of Manpower. This is where employees can submit in writing about their complaints if they have been wrongfully dismissed. The Bill amendments now have disputes that relate to the wrongful dismissal of an employee.
6. Protection Against Discrimination
The employment protection against any form of discrimination has been expanded to cover health status, age, culture, belief, and dress code. Companies with at least five employees must have formal policies when it comes to handling claims for sexual harassment.
Singapore employs people from other nationalities and this is crucial when it comes to protecting them against discrimination by other races. In addition, sexual harassment can happen anywhere, even in places you would not expect which is why this is one of the very important benefits of Employment Act amendment.
7. Night Work Benefit
Night work is between 10 pm and 6 am, and it requires compensation and agreement. The compensation can be a shift allowance or work time reduction. The employer must also provide transportation for night workers when going to work and coming home. A periodic medical examination must be provided.
The benefits of Employment Act are more favourable to employees than before, which was discussed here. We have human resources services that can help you avoid violating any rules and have a better understanding of the benefits. Contact 3E Accounting today!