Amendments to the Singapore Employment Act: The Employment Claims Tribunal – Part 2

This post is the second in our series on the Employment (Amendment) Bill (the “Bill”) where we discuss the proposed amendments to the Employment Act (Cap. 91) (the “EA”) and how it may affect you, whether you are an employee or an employer. Click here if you wish to view our first post on the Bill. The Bill can be found here.

I. The Employment Claims Tribunal

The Employment Claims Tribunals (“ECT“) was established under the Employment Claims Act 2016 with the aim to provide employees and employers with a speedy and low-cost forum to resolve their salary-related disputes. Parties must first register their claims at the Tripartite Alliance for Dispute Management (“TADM”) for compulsory mediation and thereafter, only disputes which remain unresolved after mediation at the TADM may be referred to the ECT.

A total of 1,190 employment claims were filed at the State Courts in the year since it launched the ECT on 1 April 2017. According to the State Courts approximately 78% of the types of claims referred to the ECT involved unpaid or short payment of salary or allowance. Other common claims referred to the ECT include disputes in respect of overtime pay and salary in lieu of notice.

Claims in respect of wrongful dismissal are presently dealt with by the Ministry of Manpower (“MOM”). If an employee feels that his/her dismissal is unfair, he/she may submit a written appeal to the Minister of Manpower who, if satisfied that the dismissal is unfair, may order the employer to either (1) reinstate the employee to the former job; or (2) pay the employee a sum of money as compensation.

The Bill will see employment disputes mechanisms streamlined as the ECT will have an increased jurisdiction to hear both salary and wrongful dismissal related claims.

II. Wider Definition of Dismissal

Another welcome change would be the expansion of the definition “dismiss” in the EA.

Presently, Section 2(1) of the EA defines “dismiss” to mean “the termination of the contract of service of an employee by his employer, with or without notice and whether on the grounds of misconduct or otherwise”.

The Bill will amend this definition to mean “to terminate the contract of service between an employer and an employee at the initiative of the employer, with or without notice and for cause or otherwise, and includes the resignation of an employee if the employee can show, on a balance of probabilities, that the employee did not resign voluntarily but was forced to do so because of any conduct or omission, or course of conduct or omissions, engaged in by the employer”.

Upon the Bill coming into effect, an employee’s involuntary resignation will be recognised as a form of dismissal if the employee can satisfy the requirements found in the amended definition of “dismiss”. This will therefore allow an aggrieved employee who has been the subject of constructive dismissal an extra avenue of recourse: the ECT.

Look out for our upcoming posts on the Bill where our discussions will include changes to sick and hospitalisation leave , obtaining consent from the employee when making deductions to salary and more!

Please contact Kim Seah at Kim.Seah@incisivelaw.com for any employment law related enquiries.

 

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