Employment Act Singapore Update

April 28, 2014

Employment Act Singapore Update

Significant changes to the Employment Act (Cap.91) have taken effect on 1 April 2014.Legal Contracts Singapore

Organisations who have employment contracts with:

i. non-PMEs (Professionals, Managerial & Executive employees) earning up to S$2,500 per month; and

ii. PMEs earning up to S$4,500 per month

should take note of these changes.

The following table shows a summary of the key changes in the Employment Act:

Before 1 April 2014 With Effect From 1 April 2014
PME employees not covered by Employment Act PME employees earning up to S$4,500/mth covered by Employment Act
Non-workmen employees earning up to S$2,000 a month are covered under Part IV of the Employment Act The income ceiling of these employees has now been raised to S$2,500/month
Only non-workmen employees earning up to S$2,000 can claim overtime pay Income ceiling of non-workmen employees who can claim overtime raised to S$2,500 but overtime amount is capped
PME employees who were terminated in compliance with their employment contract cannot claim unfair dismissal PME employees who have served their employers for at least 12 months can now seek redress for unfair dismissal even if the termination was carried out in compliance with their employment contract
50% cap on total authorised deductions from employee salaries Same exception that within the 50% cap, there is a 25% sub-cap on deductions for accommodation, amenities and services
Employers who fail to pay salaries will be fined up to S$5,000 and/or up to 6 months’ imprisonment for the first offence Employers who fail to pay salaries will be fined between S$3,000 to S$15,000 and/or up to 6 months’ imprisonment for the first offence
Maximum composition fine under the Employment Act is S$1,000 Maximum composition fine under the Employment Act is now S$5,000
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