Singapore's New Employment Act

Singapore’s new Employment Act will take effect soon. Before her March 26 webinar, Singapore Manager Richelle Tay addressed some common questions about reforms and their impact on employers.

When will the new employment law come into effect?

The new Employment Act will take effect on April 1, 2019.

 What businesses and employees will be affected?

The new law affects all businesses, and all employees – local and foreign – under contract with an employer in Singapore.

Currently, core provisions of the Employment Act cover all employees except for managers and executives earning above S $4,500 a month. But from April 1, this salary cap will be removed.

The new act is expected to benefit an additional 430,000 managers and executives.

What are the key provisions extended to managers and executives?

The core provisions include having a minimum of 7 to 14 days of annual leave, paid public holidays, sick leave, and statutory protection against wrongful dismissal.

In addition, managers and executives who are workmen earning more than S $4,500 a month, as well as managers and executives who are non-workmen earning more than S $2,600 a month, are now entitled to compensation for working on a public holiday. 

 What are the main compliance concerns for employers?

The Employment Act reform brings significant changes to the dispute resolution framework, compensation for working on a public holiday, and salary deductions for employees.

Being aware of the scope of these changes will be especially important for HR departments, which may need to make internal policy changes to comply with the new rules and regulations.