TrainTheTrainer - The Employment Act (Jul 09)

The Employment Act
By:
Labour Relations and Workplaces Division
1
® All Rights Reserved
Employment Act
• Governs terms & conditions of employment in
Singapore
• Covers all workers who work under a contract of

service, except:
Seamen,
Domestic workers;
Managerial & Executive staff;
Statutory Board and Government employees
• Terms & conditions of contract of service

CANNOT be less favourable than the ACT.
2
Part III: Payment of Salary
Salary within 7 days after the end

of the salary period
Overtime within 14 days after the

end of the salary period
Dismissal day of dismissal / termination

& Termination or within 3 working days
Resignation last day of employment

or within 7 days
3
Authorised Deduction of Salary
• Absence from work
• Damage to / loss of goods entrusted / loss
of money required to account where such
damage or loss directly attributable to
neglect or default
Employee must be given opportunity

to show cause against deduction
before it is made
one time
Deduction is
cannot exceed 25%
of4 1 month’s wage
Authorised Deduction of Salary
• Cost of meals
• Recovery of loans and advances
• Accommodation, Amenities and Services
• Income tax payment, CPF contributions
• Payment to cooperative societies
• Any other purpose which may be approved by

the Minister 5
Public Holidays
11 paid public holidays in a year
by agreement, public holidays can be

substituted by other days
if an employee works on a PH, he should be

paid 1 extra day’s pay in addition to the holiday
pay.
6
Sick Leave
Paid sick leave:
• 14 days per year for sick leave if no

hospitalisation is necessary
• up to 60 days per year if hospitalisation is

necessary
(must complete 3 months’ service before

employee eligible for pro-rated paid sick
leave)
7
Sick Leave
The number of days of paid sick leave will be phased
in between the completion of 3 months and 6 months
of service as follows:
No. of months of Paid Outpatient Sick Paid Hospitalization

service complete leave entitlement leave entitlement
(days) (days)
3 months 5 15
4 months 5+3=8 15 +15 = 30
5 months 8 + 3 = 11 30 + 15 = 45
6 months & beyond 11 + 3 = 14 45 + 15 = 60
8
Part IV: Rest Days, Hours of Work and
other Conditions of Service
Part IV of the Employment Act is applicable

only to :
(i) All Workmen
(ii) Other employees earning not more

than $2,000 per month
Excludes overtime, bonus,

AWS, productivity
incentives and allowances
9
Rest Day
• Employee to be given at least 1 rest day a

week (unpaid);
• If not fixed, employees to be given a roster

of the rest days for the month before month
commences;
10
Payment for Work on Rest Day
Half the normal hours More than half and

for one day up to the normal hours
for one day
At employer’s request: At employer’s request:
• 1 day’s pay at basic rate of • 2 day’s pay at basic rate of

pay pay
At employee’s request: At employee’s request:
• 1/2 day’s pay at basic rate of • 1 day’s pay at basic rate of

pay pay
11
Hours of Work
• Contractual hours not more than 44 hours a

week /8 hours a day:
• Per Day: Maximum working hours

including overtime is 12 hours (unless
exempted by the Commissioner);
• Per Month: Maximum hours of overtime is

72 hours (unless exempted by the
Commissioner);
12
Overtime Formula
Overtime rate: Not less than 1.5 times the

hourly basic rate of pay
Monthly-rated employee:
Rate of pay for 1 hour’s work
12 X Monthly Basic rate of Pay
52 X 44 (ie. 2288)
13
Annual Leave
minimal entitlement of paid leave :
1st yr - 7 days 5th yr - 11 days

2nd yr - 8 days 6th yr - 12 days
3rd yr - 9 days 7th yr - 13 days
4th yr - 10 days 8th yr & above -14 days
must complete 3 months’ service before employee

is entitled to paid leave
14
Employment Dispute
• If a worker has an employment dispute with his
employer, he SHOULD NOT:
≠ Not report for work

≠ run away and hide from employer
≠ ask co-workers to stop work together
Instead the worker SHOULD:
Talk to employer on the problem and

seek advice from MOM, if needed.
15

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The Employment Act

• Covers all workers who work under a contract of

• Terms & conditions of contract of service

Salary within 7 days after the end

Overtime within 14 days after the

Dismissal day of dismissal / termination

Resignation last day of employment

Employee must be given opportunity

• Recovery of loans and advances

• Accommodation, Amenities and Services

• Income tax payment, CPF contributions

• Payment to cooperative societies

• Any other purpose which may be approved by

11 paid public holidays in a year

by agreement, public holidays can be

if an employee works on a PH, he should be

Paid sick leave:

• 14 days per year for sick leave if no

• up to 60 days per year if hospitalisation is

(must complete 3 months’ service before

No. of months of Paid Outpatient Sick Paid Hospitalization

4 months 5+3=8 15 +15 = 30

6 months & beyond 11 + 3 = 14 45 + 15 = 60

Part IV of the Employment Act is applicable

(i) All Workmen

(ii) Other employees earning not more

Excludes overtime, bonus,

• Employee to be given at least 1 rest day a

• If not fixed, employees to be given a roster

Half the normal hours More than half and

At employer’s request: At employer’s request:

• 1 day’s pay at basic rate of • 2 day’s pay at basic rate of

At employee’s request: At employee’s request:

• 1/2 day’s pay at basic rate of • 1 day’s pay at basic rate of

• Contractual hours not more than 44 hours a

• Per Day: Maximum working hours

• Per Month: Maximum hours of overtime is

Overtime rate: Not less than 1.5 times the

12 X Monthly Basic rate of Pay

minimal entitlement of paid leave :

1st yr - 7 days 5th yr - 11 days

must complete 3 months’ service before employee

≠ Not report for work

Instead the worker SHOULD:

Talk to employer on the problem and

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