CHANGES TO THE SINGAPORE EMPLOYMENT ACT
On 5 March 2018, the Minister for Manpower announced in Parliament that with effect from 1 April 2019, key changes will be made to the Employment Act (EA) to cover more employees in Singapore. Notably, the current salary cap of S$4,500 per month that excludes employees from the EA coverage will now be removed. This means that the EA will cover all employees (except public servants, domestic workers and seafarers) including professionals, managers and executives (PMEs) earning more than S$4,500 which, before the removal of the salary cap, fell outside the ambit of the EA. PMEs earning more than $4,500 had to rely solely on the provisions in their contract of employment. The expanded coverage of the EA ensure that all PMEs will enjoy protection relating to timely payment of salaries, holiday, sick leave entitlements as well as the ability to appeal against wrongful dismissal. The core employee benefits in the EA include:
A minimum of 7 days of annual leave;
11 days of paid public holidays;
14 days of paid sick leave and 60 days of paid hospitalisation leave;
Maternity and childcare leave;
Redress for wrongful dismissal; and
Protection in relation to hours of work and overtime pay.
If you wish to understand more on how these changes would affect your business and hiring practices, please feel free to approach:
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