Statutory Obligations of

Employers in Singapore Part 1

Note: parts in bold are new
and not reflected in textbook

Seminar 6
Employment Act : Coverage
Among other things, the Employment Act, accords certain
protections to employees, a term which is defined in section 2 of
the Employment Act.

However currently, the following employees are excluded:
Government employees
Statutory Board employees
Domestic Workers
Any person employed in a managerial or executive position (but
note: if you are earning $4500 or less, you are covered, even
if you are a manager or executive).

Why are managers or executives generally excluded?
Who is a manager or executive?

If covered, does it matter that the employee is a foreigner or part-
time worker or on probation?





Case Examples
Stansfield v Minsiter
Lecturer in private
institution
No evidence of
managerial duties or
procession of confidential
information.
Degree Holder
Brightway v Ang Lily
Accountant
No supervisory duties
Did not have staff under
her control and did not
have access to
confidential information
or trade secrets
Diploma Holder.
Does the Employment Act entitle an
employee to get the following?
Minimum Wage?
Retrenchment Benefits?
- Express Contractual Right
- Implied Contractual Right?
Salary Increments/Adjustments?
- Express Contractual Right
- Implied Contractual Right?
But whatever the legal right,
can still negotiate. In this
connection, note: National Wages Council
(NWC)








Part IV of the Employment Act: Leave/Hours of
Work/etc
Matters such as annual leave/hours of work/etc are
contained in Part IV of Employment Act.
Part IV only applies to employees as defined in
the Employment Act and earning $2500 or less a
month or who are workmen and earning $4500 or
less a month.
Even then Part IV - does not apply to executives
and managers.
Who is a workman?
Eg: is a secretary earning $2700 covered?
Eg: is a bus-driver or electrician earning $2500 covered?
Breach of provisions of Part IV involves commission of
an offence.
For employees not covered by Part IV, such matters
must be determined by looking at the express/implied
terms of the contract.
Part IV of the Employment Act:
Rest Days
Entitled to one day of rest in a week.
Rest day can be Sunday or such other day as
determined by the employer.
Not entitled to be paid on rest day. Is this more
significant for daily rated workers or monthly
rated workers?
However, if employee works on a rest day,
entitled to more pay. The rate of pay varies with
whether the employer requests the work or the
employee requests the work and the number of
hours worked.
Part IV of the Employment Act: Hours of Work
Generally cannot work more than 8 hours a day or 44
hours a week.
- Eg: if you work for 8 hours, Monday to Thursday but 10
hours on Friday, has the limit been exceeded?
However, there are exceptions to the rule; eg: 5-day
work-week; shift-work.
Does the maximum hours include: breaks (eg: lunch),
handing/taking over shifts?
If works more than maximum permitted: generally
entitled to overtime pay of at least 1.5 x basic hourly
rate of pay.
But note: generally cannot be required to work for more
than 12 hours in a day or do overtime work for more
than 72 hours in a month.
If you work overtime, can they give you time-off
instead of overtime pay?
Part IV of the Employment Act:
Annual Leave
Served more than 3 months:
- 7 days for 1
st
12 months
- Thereafter one additional day every year
subject to max. of 14
Entitled to be paid in respect of leave
days.
Can leave be carried forward?
Generally can unused leave be
enchased?

Entitlement to Payment/Additional
Payment under the Employment Act
Where the employee is entitled to payments or
additional payments under Part IV or other Parts of
the Employment Act:
Most of the payments are calculated on the basis of
a gross rate of pay (eg: annual leave/sick
leave/maternity leave/child-care leave),
But, some of the payments are calculated on a basic
rate of pay (eg: working on a rest day/overtime
work).
Basic rate of pay refers to the basic pay without
allowances.
Gross rate of pay refers to the basic pay and all
allowances except travel/food/housing allowance.
Employees not Covered under Part
IV or the Employment Act.
For employees not covered, as said,
matters such as leave/hours of work/etc
depends on the express or implied terms
of the contract.
For instance, in relation to number of
hours, if the contract is silent, what could
be an implied term?

Non-Part IV Rights: Holiday Leave
Entitled to leave on public holidays, though
employer can substitute another day instead.
Employee must be paid in respect of that public
holiday or substituted day.
In addition, if works on a public holiday without
a substituted day-off, generally entitled to
about double pay.
What if holiday falls on rest day?
What if holiday falls on non-working day?



Non-Part IV Right: Sick Leave
If served for 6 months:
14 days sick leave in a year where
hospitalization is not necessary,
60 days sick leave in a year (assuming the
employee has not taken non-hospitalization sick
leave) if hospitalization is necessary.
If less than 6 months, but more than 3 months,
there is prorated sick leave:
- 3 but less than 4 mths: 5/15
- 4 but less than 5 mths: 8/30
- 5 but less than 6 mths: 11/45
- 6 months or more: 14/60
Can you get hospitalization leave if you are not
in hospital?



Source: Microsoft Clipart
Non-Part IV Right: Sick Leave
Entitled to sick leave if employee gets a MC and
employer is informed.
What if MC is from a dentist or TCM doctor?
Must the employer bear the medical expenses
related to the sickness?
Can the employer refuse to give or make it
difficult take sick leave if conditions are
satisfied?
Can the employer terminate the services of the
employee during sick leave just to avoid making
payment?
Non-Part IV Right: Maternity Leave
Employees falling under EA can get
maternity leave if certain conditions.
Eg: of a condition - must have served for
90 days before delivery; but no
requirement that child must be a
Singapore citizen at birth or become one
thereafter.
Entitled to 12 weeks of leave and 8
weeks of pay.

Maternity Leave under CDCA
Another statute which governs maternity leave is the
CDCA.
All employees are covered by the this Act.
All employees covered by this Act are entitled to
maternity leave, if certain conditions are satisfied.
Eg: of a condition must have served for 90 days before
delivery, child must be a Singapore citizen at birth or
must become one within 12 months.
Entitled to 16 weeks of maternity leave, which
essentially can be taken in 3 different ways:
(a) 4 weeks before delivery and 12 weeks after delivery.
(b) 16 weeks starting not earlier than 4 weeks before
delivery.
(c) 8 weeks starting not earlier than 4 weeks before
delivery + up to 48 days to be taken within 12 months
of delivery.


Maternity Leave under CDCA
During leave, entitled to be paid.
For 1
st
2 deliveries employer pays for the first 8 weeks
(no limit). For the next eight weeks the employer must
also pay. But this is subject to a limit and further, the
employer can get a reimbursement from the
government.
For 3rd and subsequent deliveries what employer has
to pay is subject to a limit and the further, the employer
can get reimbursement from the government.


Formally, maternity leave only applicable in respect of 1
st

4 children. Now there is no limit.
From 1
st
May 2013, a husband of a qualifying wife
may claim one week of her entitlement.
Husbands employer can claim reimbursement in
respect of this.

Maternity leave other matters applicable to
both statutes
No employee can be dismissed/contract cannot
be terminated by the employer during maternity
leave.
In addition, no employee can be dismissed
during pregnancy (formally 6 months before
delivery) unless there is a sufficient cause for
doing so.
Can you not hire a female because she is
pregnant?

Paternity Leave
As from 1
st
May 2013, under the Child
Development Co-Savings Act, fathers
would be entitled to one weeks paternity
leave.
However, this is subject to conditions such
as that the child must be a Singapore
citizen, the childs parents must be
married and the father must have worked
at least 3 months for the employer.
The employer who pays can claim
reimbursement from the government,
subject to a limit of $2500.
Non-Part IV Right under EA:
ChildCare Leave
Applies to employees covered under the
Employment Act provided they have served the
employer for a period of more than 3 months.
Entitled to childcare leave of 2 days for a child
below 7 years of age.
Entitled to payment in respect of days of child
care leave.
Generally cannot be carried forward.
Maximum that can be claimed is 2 per year,
regardless of number of children.
Must the parent produce a MC for the child
before claiming childcare leave?
Source: Microsoft Clipart
ChildCare Leave CDAC
But alternatively: can claim under
Children Development Co-Savings Act.
Can get up to 6 days of childcare leave if child is
qualifying child.
- 3 to less than 5 months: 2 days
- 5 to less than 7 months: 3 days
- 7 to less than 9 months: 4 days
- 9 to less than 11 months: 5 days
- 11 months or more: 6 days
Further, employer can get partial reimbursement.
Plus from May 2013, employees can also get
extended childcare leave (2 days) for a
qualifying child below 13 years. An employer
who pays can get reimbursement from the
government as well.


Summary
The Employment Act confers various rights on
employees. However, not all employees are covered by
the Employment Act.
In respect of employees covered under the
Employment Act, they are entitled to various rights
such as child care leave, sick leave and maternity
leave.
In respect of employees covered by Part IV of the
Employment Act, they are entitled to additional rights
such as annual leave and overtime pay.
For employees not covered by the Employment Act,
their rights have to be determined by means of
express/implied terms in their contracts. Though in
some instances, such as in relation to maternity leave,
by virtue of the Children Development Co-Savings Act,
all employees are entitled to the maternity leave if
certain conditions are satisfied.
Where it is a statutory entitlement, a breach on the
part of the employer would generally result in the
commission of an offence.

Reading
Basic Text: Chapter 4 (4.9-4.16, 4.20,
4.110, 4.113-4.115, 4.121-4.122, 4.124-
4.126, 4.128-4.129, 4.131, 4.133-4.135,
4.137, 4.141, 4.145, 4.147-4.149, 4.154,
4.156-4.158, 4.160-4.162, 4.171-4.173,
4.176, 4.179, 4.181, 4.183-4.187, 4.192,
4.202-4.204, 4.207, 4.210-4.211).