Andrew Yap & John | Employment Act Mandatory Requirements Grace Period Ends 31 March
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Employment Act Mandatory Requirements Grace Period Ends 31 March

Employment Act Mandatory Requirements Grace Period Ends 31 March

The Employment Act was amended in 2015 to make it mandatory that employees under the Act are provided with itemised payslips and key employment terms (KETs) in writing, and employers are to keep records of employees. A breach of these mandatory requirements is considered a civil breach which will attract administrative financial penalties / fines.

The Ministry of Manpower (MOM) gave employers a grace period which ends 31 March 2017 for compliance. After this date, any employer found in breach may be liable to regulatory investigations and fines by MOM.

If you need (eleventh hour) advice on compliance with these regulations and/or template employment contracts and itemised payslips, please feel free to contact me at ronald.wong@covenantchambers.com.

See the Employment (Employment Records, Key Employment Terms and Pay Slips) Regulations 2016.

Itemised Payslips

Itemised payslips may be issued 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.

Key Employment Terms (KET)

The Act makes it mandatory that employers provide written KETs to all employees covered under the Act with continuous employment of at least 14 days. Employers have some flexibility in how they provide the KETs as long as the required items are clearly accessible. KETs are:

1. Employer’s name —

(a) for an employer who is an individual, as specified on the identity card or passport of the employer; or

(b) for an employer which is not an individual —

(i) as specified on any register or official record kept under any written law; or

(ii) where sub-paragraph (i) is not applicable, the name in which the employer employed the employee

2. Employer’s trade name if different from that in item 1

3. Employee’s name as specified on the employee’s identity card, work pass or passport

4. Job title

5. Description of main duties and responsibilities

6. First day of period of employment

7. Duration of employment (for a fixed term employment contract only)

8. Daily working hours, number of working days per week and rest days

9. Salary period

10. Basic rate of pay

11. Any fixed allowance during each salary period (if applicable)

12. Any fixed deduction during each salary period (if applicable)

13. Payment period for overtime pay (if different from salary period)

14. Rate of overtime pay

15. Any other salary-related component (such as but not limited to any bonus or other monetary incentive) (if applicable)

16. Leave entitlement (such as but not limited to any annual leave, sick leave, maternity leave, paternity leave and childcare leave)

17. Medical benefits (such as but not limited to any medical or health insurance or dental benefits)

18. Probation period (if applicable)

19. Notice period for dismissal by employer or termination of employment contract by employee (as the case may be)

Employee Records

Employers are obligated under the Act to keep records of their employees / past employees. For the following information, employers must keep such information during the course of employment, and thereafter for one (1) year after the last day of employment:

1. Employee’s personal particulars consisting of —

(a) latest name as specified on the employee’s identity card, work pass or passport;

(b) current address of place of residence;

(c) date of birth;

(d) gender; and

(e) identity card number or foreign identification number

2. First day of period of continuous employment

3. Last day of period of continuous employment (if applicable)

For the following information, the record has to be maintained for two (2) years after the entry was made, and one (1) year after the last day of employment:

4. Hours worked each day and duration of any meal break or other break

5. Dates of public holidays and other holidays taken by employee

6. Date when leave is taken (such as but not limited to any annual leave, sick leave, maternity leave, paternity leave and childcare leave) taken by employee

7. First and last days of each salary period

8. Amount of basic salary paid to employee during each salary period, calculated by reference to the basic rate of pay

9. Amount of allowances and other additional payments during each salary period, with itemisation of every allowance or payment (if applicable)

10. First and last days of each overtime payment period (called in this Schedule the overtime period) if different from each salary period

11. Overtime hours worked during each overtime period (if applicable)

12. Overtime pay for each overtime period (if applicable) and date of payment

13. Amount of deductions from salary during each salary period, with itemisation of every deduction (if applicable)

14. Net amount paid to employee for each salary period and date of payment

Note that the Personal Data Protection Act 2012 (PDPA) would apply to the retention of such employees’ personal data. Take this free self-assessment audit tool to check if you are PDPA compliant here: www.singaporepdpa.com.

Author: Ronald JJ Wong     Email: ronald.wong@covenantchambers.com