These changes aim to improve employment standards and facilitate the resolution of any employment-related disputes if they arise, says the Ministry of Manpower.
Besides making employment terms more transparent, the changes include treating less severe infringements of the law as civil offences, which may attract a financial penalty but not a criminal record. “This process is more appropriate for these types of administrative breaches, and prevents companies from being penalised too heavily, especially SMEs,” said Manpower Minister Lim Swee Say, referring to small and medium-sized enterprises, which employ more than two-thirds of the workforce.
Laws requiring employers to issue itemised pay slips and key employment terms (KETs) to staff members covered by the Employment Act (EA) come into effect from Apr 1, the Ministry of Manpower (MOM) said on Thursday (Mar 31) in a media release.
This comes after the Amendment Bill was passed on Aug 17, 2015.
MOM said these changes aim to improve employment standards and facilitate the resolution of any employment-related disputes if they arise. Those who keep incomplete or inaccurate employee records will be in breach of obligations.
“As announced in August 2015, MOM will adopt a light-touch enforcement approach and focus on educating employers in the first year,” the ministry said.
MOM added that employers can tap on the EA assistance package for blank payslips and KETs that can be filled in by hand; software for generating itemised pay slips; one-to-one assistance for small and medium enterprises; as well as funding.
Four areas will be covered:
- Failure to issue itemised payslips;
- Failure to issue key employment terms, such as working arrangements, main duties and fixed salary deductions, in writing;
- Failure to maintain detailed employment records; and
- Provision of inaccurate information to the Commissioner for Labour or inspecting officers without intending to defraud and mislead.
Employers who breach the law will face an administrative penalty, ranging from S$100 to S$200 per employee or occurrence, and asked to rectify breaches. Failure to comply will become a criminal offence.
Key Employment Terms (KETs) from MOMFullscreen Mode
Tripartite Guidelines on Issuance of Key Employment Terms in WritingFullscreen Mode
Need Help To Overcome This?
Find out how our Human Capital System can help you to manage your payroll and employee contract easily to avoid breaching the policy.