What is Employment Act
1. The Employment Act is Singapore’s all encompassing statute relating to labour and employment issues. It lays down specific regulations regarding the basic terms and conditions of employment and the rights, duties and responsibilities of employers and employees.
2. Your first step is to know whether your employee is protected by the Employment Act.
3. If your employee is covered by the Employment Act, you should remember that the terms you draw out in the employment contract cannot be less favourable than what is mentioned in the Employment Act.
4. If your employee is not covered by the Act, then the terms and conditions of employment can be negotiated between both parties and once finalised upon it must be clearly stated in the employment contract. The contract will bind both the parties.
Who does the Employment Act apply to?
The Employment Act covers all employees, except the following:
1. Managerial & Executive Positions. Such a position is defined as one where a person has direct authority or influence in the hiring, firing, promotion, transfer, reward or discipline of other employees; or the main duties involve management and running of the business. It is also applicable to professionals (possessing tertiary education along with specialised knowledge or skills) who carry out the same or similar responsibilities as managers or executives. Examples of such professionals include lawyers, accountants, dentists, and doctors.
2. Domestic Workers
3. Seamen
4. Most of the Government Staff
Furthermore, the Employment Act makes a distinction between employees, categorizing them into
5. Employees earning less than SGD 2,000 a month
6. Employees earning above SGD 2,000 a month
Employees earning less than SGD 2,000 a month are provided additional protection (concerning “Rest Day, Hours of Work and Overtime, Public Holidays, Annual Leave, Sick Leave, Retrenchment Benefits, Retirement Benefits, Annual Wage Supplement and other variable payment”) under Part IV of the Employment Act.
For more detailed information on the Employment Act, prefer to Introduction to Singapore Employment Act and Employee Benefits.
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