What is Covered Under the Employment Act? An Employer’s Guide

The Employment Act in Singapore stands as a pivotal piece of legislation, safeguarding the rights and interests of employees in various work settings. It delineates the contours within which employers and employees interact, ensuring fair treatment and delineating responsibilities. Let’s delve into the details of who is covered under this Act and what it entails.

Who is Covered?

Broadly speaking, the Employment Act extends its protective umbrella over individuals who have entered into a contract of service with an employer. This encompasses a diverse array of workers, including:

• Workmen: These are individuals engaged in manual labor or occupations outlined in the First Schedule of the Employment Act, such as cleaners, drivers, or construction workers.
• Persons in Managerial or Executive Positions (PMEs): Regardless of their salary level, individuals holding managerial or executive roles fall under the purview of the Act. This includes professionals like lawyers, doctors, and accountants, who wield supervisory or executive functions and possess authority in decision-making realms.

It’s essential to note that certain categories are excluded from the coverage of the Employment Act, namely:

• Seafarers
• Domestic Workers
• Civil Servants and Statutory Board Employees

Part IV Coverage

Part IV of the Employment Act specifically addresses critical aspects of service conditions, such as rest days and hours of work, including overtime compensation. However, this section applies only to:

• Workmen earning a base pay of up to $4,500 per month
• Employees (excluding workmen or PMEs) earning a base pay of up to $2,600 per month

Foreign Employees

Foreign employees working in Singapore are also encompassed within the ambit of the Employment Act, barring exceptions like domestic workers. Additionally, the Employment of Foreign Manpower Act (EFMA) supplements regulations concerning foreign employees, outlining conditions for various work passes and emphasising fair employment opportunities for Singapore citizens.

Key Provisions and Entitlements

The Employment Act enshrines several fundamental entitlements for covered employees, including:

• Annual Leave: Employees are entitled to paid annual leave based on their length of service, ensuring adequate rest and rejuvenation.
• Sick Leave: Provision for paid sick leave, subject to conditions like tenure and medical certification, safeguards employees’ health interests.
• Parental Benefits: Maternity and paternity leave benefits aim to support working parents during significant life transitions, promoting work-life balance.
• Termination Rights: The Act delineates termination procedures, specifying notice periods and grounds for dismissal, ensuring fairness and transparency in employment cessation.

Compliance and Penalties

Ensuring compliance with the Employment Act is paramount for employers, with penalties for violations ranging from fines to imprisonment for subsequent offences. Strict adherence to statutory requirements maintains a conducive work environment and upholds the rights of all stakeholders.

Summary

The Employment Act serves as a cornerstone of employment relations in Singapore, fostering a framework of fairness, equity, and mutual respect between employers and employees. Understanding its provisions is essential for fostering harmonious workplaces and upholding labour standards across diverse sectors.

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