[EMBARGOED TILL PUBLIC RELEASE ON 2 SEP 08] ANNEX B PROPOSED AMENDMENTS TO THE EMPLOYMENT ACT No.

Amendment Rationale Revising Coverage of the Employment Act 1. Remove the exclusion of Confidential staff such as accounts confidential staff from the Act assistants, HR clerks and secretaries are excluded from the Act because their access to company information could lead to potential conflicts of interest and allow unions an unfair bargaining advantage. Corporate practices however have changed. Highly-sensitive company policies are now typically handled by senior management. As most confidential staff hold rank-and-file positions and two-thirds of them earn below the national median gross monthly income, we propose to cover confidential staff under the Act, so that they are entitled to basic employment benefits. 2. Grant junior managers and Managers and executives are not covered executives earning a basic monthly under the Act because they are deemed to be salary of $2,500 and below access to able to protect their interests through civil claims. However, civil claims can be the Labour Court for salary claims protracted and costly. As such, we propose to offer managers and executives who earn a basic monthly salary of $2,500 and below, protection for salary payment, which is the most common type of employment claim reported to MOM. Doing so enables such claims to be pursued by the individual in the Labour Court. Failure of employers to pay the salary of such employees will also become an offence. 3. Raise the Part IV salary ceiling for The ceiling was last revised from $1,500 to non-workmen employees to $2,000 $1,600 in 1995. We propose to raise the ceiling to $2,000, to reflect the increase in wages. 4. Introduce a basic monthly salary Employers have expressed concern on the threshold of $4,500 for workmen for protection of high-salaried workmen under Part IV coverage Part IV because it restricts their flexibility to set overtime and rest day payment rates for such workmen. After extensive consultation with the tripartite partners, we propose the introduction of a basic monthly

[EMBARGOED TILL PUBLIC RELEASE ON 2 SEP 08] No. Rationale salary threshold of $4,500 for workmen under Part IV. Reviewing Employment Standards and Benefits 5. Extend paid public holiday and paid Paid public holidays and sick leave are wellsick leave entitlements to all established industry norms. However, the employees covered under the Act existing Act only prescribes these leave entitlements for those covered under Part IV. We propose to rationalise this so that such benefits will apply to all workers covered under the Act. 6. Shorten qualifying period for paid With shorter employment tenures, we sick leave to 3 months propose to reduce the qualifying period for paid sick leave from 6 to 3 months, in order to align it with that for paid annual leave. However, sick leave entitlement between the fourth to sixth months of employment will be pro-rated. 7. Recognise medical certificates Currently, MCs from public healthcare (MCs) from public medical institutions such as restructured hospitals institutions will only be recognised if the company does not have a company-appointed medical practitioner. Most employers however grant paid sick leave for MCs from company-appointed general practitioner or any public medical institution. Therefore, we propose that MCs from all public medical institutions be recognised for the purpose of granting paid sick leave and reimbursement of medical consultation fees. 8. Recognise the Portable Medical Employers are presently required to bear the Benefits Scheme (PMBS) or other cost for both outpatient and in-patient medical insurance Shield Plans as medical consultation. As PMBS1 includes alternatives to the statutory obligation co-payment by employees, we will rationalise the Act to recognise employers to bear inpatient consultation fees who implement PMBS. 9. Redefine part-time employment Currently, part-time employees are defined under the EA as those working less than 30 contractual hours a week, and their employment benefits may be pro-rated according to work hours. To encourage employers to offer part-time working
1

Amendment

The PMBS was introduced to allow employees to enjoy continuous inpatient medical coverage not only during employment but also in between employment and after retirement.

[EMBARGOED TILL PUBLIC RELEASE ON 2 SEP 08] No. Rationale arrangements, we propose to define parttime employees as those who work 35 hours or less per week. Reviewing Penalties and Streamlining Administrative Procedures 10. Increase the penalties against It is necessary is to keep pace with inflation infringements as follows: and be in line with the higher penalty a. Increase the maximum financial amounts for similar offences in other Acts penalty for first-time offenders (e.g. Employment of Foreign Manpower from $1,000 to $5,000; Act) to maintain the deterrence effect. b. Increase the maximum financial penalty for subsequent offenders from $2,000 to $10,000; and c. Increase the maximum composition amount from $200 to $1,000. 11. Enhancing the powers of Currently, the inspection process under the Employment Inspectors by: EA is hampered by the lack of certain a. Making obstruction of powers (such as power to search) and the investigation an offence under the restrictive nature of existing powers. As EA instead of the Penal Code; such, we propose to vest employment b. Enabling Employment Inspectors inspectors with powers similar to those to: provided under other Acts (e.g. Employment Search and examine of Foreign Manpower Act and Workplace premises for employment Safety and Health Act). records; Take photographic and videographic evidence; and Issue a warrant of arrest to secure attendance of witnesses c. Rationalising existing powers to give greater flexibility e.g. broadening the scope of investigation beyond workplaces, to prevent errant employers from hiding relevant evidence of employment violations in other locations. 12. Streamline the dispute resolution The proposed changes would provide process by: greater flexibility in the court summons a. Allowing Labour Court process and improve MOMs operational summons to be served in efficiency. alternative ways (e.g. by post) instead of only by hand for Amendment

[EMBARGOED TILL PUBLIC RELEASE ON 2 SEP 08] No. Amendment individuals and non-corporatised businesses; and b. Removing the minimum notice period of 12 days for labour court summons to allow urgent cases to be heard faster. Remove s 62 that allows defendant to identify and prove 3rd party as actual offender for violations under Part V (Truck System) Repeal s 105(2) which states that any information that is divulged during inspection by witnesses will not be used against them in any criminal proceedings, except for prosecution for giving false evidence Update s 124(1) on investigations of complaints and offences Rationale

13.

A defendant should be able to acquit himself in the legal process without having to incriminate a 3rd party. Recorded statements from a witness should be allowed to be used against himself subsequently should he become a defendant.

14.

15.

These are technical amendments to better reflect MOMs administrative procedures in handling complaints and offences. For example, we will require a witness to furnish information and produce articles of relevance instead of merely attending an inquiry. 16. Move procedural Parts/Sections (e.g. This will facilitate the regular review of prescribing Labour Court processes) such procedures for operational efficiency. into regulations Rationalising Outdated Provisions 17. Repeal Part X (Employment Part X of the EA provides for the creation Exchange) of a Government-administered employment exchange to register individuals seeking employment and assist them in getting employment. Since its enactment in 1968, the labour market has changed significantly with the emergence of private employment agencies to match labour demand with supply. The Singapore Workforce Development Agency (WDA) has also been formed to assist job seekers in skillsupgrading and job-matching. In effect, the functions of Part X have been effectively replaced by private sector labour market intermediaries and WDA, and hence it can be repealed. 18. Repeal Part XI (Health, Part XI is now irrelevant because the Accommodation and Medical Care) requirements for acceptable employer-

[EMBARGOED TILL PUBLIC RELEASE ON 2 SEP 08] No. Amendment Rationale provided accommodation are already regulated under other statutory requirements (e.g. building structural safety standards by the Building and Construction Authority, environmental health requirements by the National Environment Agency, drainage and sanitary/sewerage system requirements by the Public Utilities Board). For foreign workers, the requirement for employers to provide proper accommodation is also imposed as Work Permit conditions. This reference was introduced in 1973 as part of the family planning measures to curb population growth, by discouraging collective agreements (CAs) from offering paid maternity leave beyond the second birth, and superseding any existing CAs with such terms. The original rationale is no longer valid. Such references are obsolete, particularly when collective agreements are reviewed every three years.

19.

Removing the restriction on collective agreements in offering maternity benefits that are more favourable than those stipulated in the EA

20.

21.

Remove clauses in sections referring to contracts before/after 15 Aug 1968, i.e. under s 7, s 8, s 18 and s 53(2) Update the definition of "medical officers" to include doctors employed in polyclinics and specialty institutes, and allow this definition to be changed via Gazette

22.

With the restructuring of Singapores public healthcare facilities, medical practitioners employed in polyclinics and specialty institutes under the Governments administration (e.g. Cancer Institute, Eye Institute and Heart Institute) do not fall within the definition of medical officer under the EA. Hence, we propose to include doctors employed by these institutions under the definition of medical officer. Rationalise the use of the terms The terms termination and dismissal are "dismiss" and "terminate" in the EA currently not defined in the EA, and there are differing interpretations of what dismissal constitutes. To prevent misinterpretations, it is proposed that a technical update be made to define dismissal as an act by an employer in terminating employment (with or without notice). Termination would be defined more broadly as the cessation of employment

[EMBARGOED TILL PUBLIC RELEASE ON 2 SEP 08] No. Amendment Rationale initiated by either the employer or employee. The EA stipulates the maximum contractual working hours for regular employees at 8 hours per day, 44 hours per week. Notwithstanding this, the statutory working hours can be exceeded for exceptional circumstances where urgent work involving defence, security or essential to the life of the community is required. The working hours for shift workers are capped at 12 hours per shift, with no provision to allow for the maximum working hours to be exceeded in exceptional circumstances. The exemptions from maximum working hours should apply regardless of whether the employee is a regular employee or shift worker.

23.

Allow the maximum daily and weekly working hours for shift workers to be exceeded in exceptional circumstances where urgent work involving defence, security or essential to the life of the community is required.