Changes in the Employment Act of Singapore

07 Feb 2014

The Parliament of Singapore passed the ‘Act’ which consists of the Parental Leave, Employment and other Measures Act on 12^th November 2013. This will cause the Employment Act, called as ‘EA’ (Cap.91), to experience a few changes and will give better employment rights to more employees, while retaining business interests. Along with the changes to the EA, technical amendments will be made to the Child Development Co-Savings Act, called as the ‘CDCA’ (Cap. 38A), to clarify the application of parental rights and existing marriage.

Effective 1^st April, 2014, most of these changes will take effect.

Primary changes to the Employment Act (Cap. 91)

Extension of the scope of EA

Employees in executive or managerial positions (PME) are generally only entitled to particular salary protections for people who earn a basic monthly salary of not more than S$4500, and are not entitled to the EA’s basic employment protections. Now, PMEs earning a basic monthly salary of less than S$4,500 will have employment protection. Therefore, these employees will be protected against wrongful termination and, amongst other things, have access to automatic employment transfer in the case of a business transfer, time-off in lieu (if employees need to work during a holiday) and benefits of sick leave.

Reduction in permitted  salary deductions

For deductions to the salaries of employees for employer supplied services, amenities and accommodation, a 25% sub-cap will be imposed under the existing 50% limitation for all approved deductions.