Amendments to the Singapore Employment Act: The Employment Claims Tribunal – Part 3

This post is the last in our series on the Employment (Amendment) Bill (the “Bill”) which was passed by parliament on 20 November 2018. We discuss the 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 and here if you wish to view our previous posts on the Bill. The Bill can be found here .

A. Statutory Annual Leave
Statutorily provided annual leave is presently only found in Part IV of the EA which applies to a certain group of employees. Annual leave for employees who fall outside of Part IV of the EA will be accorded according to the terms of the respective employment contracts.

The Bill will shift the annual leave provision out of Part IV of the EA into the general section of the EA. As mentioned in our first post, the Bill will cover nearly all employees (save for public servants, domestic workers and seafarers – who are covered under separate legislations) and therefore these employees will soon all be entitled to statutorily provided annual leave.

The method of calculation of the amount of annual leave which an employee is statutorily entitled to remains unchanged and can be found in the new Section 88A.

B. Salary Deductions
The Bill would require employers to obtain their employees’ written consent before making any deductions from their salary for the following:
i. deductions for house accommodation supplied by the employer;
ii. deductions for such amenities and services supplied by the employer
iii. any other deductions which are not identified in the EA

At present, deductions for house accommodation supplied by the employer and deductions for such amenities and services supplied by the employer can be made without the employee’s consent.

The Bill also accords further protection to employees in this respect as it expressly provides that an employee’s written consent in relation to the above deductions may be withdrawn by the employee at any time before the deduction is made by giving a written notice of withdrawal to the employer. Importantly, the employee cannot be penalised by the said withdrawal of consent.

The Bill will remove the ability of an employer to make deductions for the actual cost of meals supplied by the employer at the request of the employee. Further, the Bill will entitle an employer to deduct sums for “unearned employment benefits” which will include things such as annual leave taken in advance. Employers will be pleased to note that the ability for employers to make deductions for salary over-payment(s) remains unchanged.

C. Sick & Hospitalisation Leave
i. Sick Leave
Employers are required under the present EA to accord paid sick leave only if the medical certificate is issued by Government or employer-appointed doctors. This measure was put in place since the enactment of the EA in 1968 to combat frequent absences due to fictitious medical certificates.

Doctors today are registered under the Medical Registration Act (Cap. 174) and are subject to the Singapore Medical Council Ethical Code and Ethical Guidelines. There is therefore no longer a need to distinguish between medical certificates issued by different groups of doctors where paid sick leave is concerned. As such, the Bill provides that employers must recognise medical certificates issued by any registered doctor or dentist.

ii. Hospitalisation Leave
At present, an employee is deemed to be hospitalised for the purposes of determining the hospitalisation leave entitlement under the EA as long as the employee is certified ill enough to require hospitalisation irrespective of actual hospitalisation.

The Bill will change this position so that an employee is only deemed hospitalised for the purposes of determining the hospitalisation leave entitlement under the EA if:

i. warded in an approved hospital; and

ii. upon discharge is certified by a medical practitioner from said approved hospital that the employee is ill enough to need to remain hospitalised during that period or the employee will need to rest during that period in order to recover.

D. Retrenchment
The Bill would require an employer to furnish information on the retrenchment of any employee if required to do so by the Commissioner for Labour and a breach of this obligation will be regarded as a civil contravention such that an errant employer may be subjected to payment of administrative penalties.

This provision is in addition to the current obligation on employers who employ at least 10 employees to inform the MOM if 5 or more employees are retrenched within any 6 month period beginning 1 January 2017.

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

 

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