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UNDERSTANDING SINGAPORE'S EMPLOYMENT LAWS: A GUIDE FOR EMPLOYERS AND EMPLOYEES

Navigating the complexities of employment laws in Singapore can be challenging for both employers and employees. Whether you're running an employment agency in Singapore or working as an HR professional, understanding these regulations is crucial to maintaining compliance and fostering a fair workplace. This guide aims to clarify the essential aspects of Singapore's employment laws.

Last updated   August 30/08/2024    Udhayaseelan Renganathan

What is Employment Law?

Employment law encompasses the rules and regulations governing the relationship between employers and employees. In Singapore, these laws are designed to protect the rights of workers while ensuring that employers can operate their businesses efficiently. The Ministry of Manpower (MOM) oversees and enforces these regulations.

Key Components of Singapore's Employment Laws

1. Employment Act

The Employment Act is Singapore's primary labor law. It covers:

  • Salary Payment: Employers must pay salaries at least once a month and within seven days after the end of the salary period.

  • Working Hours and Overtime: Standard working hours should not exceed 44 hours per week. Overtime pay is mandatory for eligible employees.

  • Rest Days and Public Holidays: Employees are entitled to one rest day per week and paid public holidays.

  • Termination and Dismissal: Proper notice periods and justifications are required for termination.

2. Work Injury Compensation Act (WICA)

WICA provides a simpler and faster alternative to common law for claiming work injury compensation. It covers:

  • Eligibility: All employees, regardless of salary, are covered under WICA.

  • Claims: Employees can claim for medical expenses, lost wages, and permanent incapacity.

3. Central Provident Fund (CPF)

CPF is a mandatory savings scheme to help employees fund their retirement, healthcare, and housing needs. Key points include:

  • Contributions: Both employers and employees must contribute to the CPF.

  • Contribution Rates: Vary based on age and wage.

4. Fair Consideration Framework (FCF)

The FCF ensures fair hiring practices and promotes the hiring of Singaporean workers. Key points include:

  • Job Advertising: Employers must advertise job vacancies on the MyCareersFuture portal before applying for Employment Passes.

  • Fair Hiring Practices: Employers must consider Singaporean candidates fairly.

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How Employment Agencies Play a Role

Employment agencies in Singapore play a pivotal role in connecting employers and employees, ensuring that both parties understand and comply with employment laws. Agencies must:

  • Register with MOM: All employment agencies must be licensed by the Ministry of Manpower.

  • Compliance: Agencies must adhere to ethical recruitment practices and employment laws.

  • Dispute Resolution: Assist in resolving employment disputes.

Tips for Employers

  • Stay Updated: Regularly review updates from MOM to stay informed about changes in employment laws.

  • Employee Contracts: Clearly outline terms and conditions in employee contracts.

  • Workplace Policies: Implement comprehensive workplace policies that comply with employment laws.

  • Training: Provide regular training for HR professionals on employment laws and best practices.

Tips for Employees

  • Know Your Rights: Familiarize yourself with the Employment Act and other relevant regulations.

  • Keep Records: Maintain records of your employment contract, salary slips, and other important documents.

  • Seek Advice: If you face any issues, seek advice from the MOM or an employment agency.

FAQs

The Employment Pass (EP) is a work visa for foreign professionals, managers, and executives. It allows these individuals to work in Singapore, provided they meet eligibility criteria, including a minimum salary requirement and recognized qualifications.
An Employment Pass is typically valid for up to two years, with the possibility of renewal. Employers can apply for a renewal three months before the EP's expiry date.
If your application is rejected, the Ministry of Manpower provides an overview of the reasons for rejection. You can either address the issues highlighted and reapply or consider alternative work pass options that might be more suitable.
Yes, Singapore offers several types of work passes, including the S Pass for mid-skilled workers, the EntrePass for entrepreneurs, and the Work Permit for semi-skilled or unskilled foreign workers.
If you wish to appeal a decision made regarding work passes or employment matters, you can submit a formal appeal through the MOM's online services, including supporting documents to strengthen your case. It’s essential to provide clear justification as to why you believe the decision should be overturned.
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Last updated   August 30/08/2024    Udhayaseelan Renganathan