Amended Employment Act Target PMEs

The Employment Act Amendment Bill passed in Parliament on 12 November 2013 promises to significantly impact the growing number of PMEs (Professionals, Managers and Executives) in Singapore earning a basic monthly salary of up to $4,500.

More than half of the current approximately 300,000 resident PMEs in Singapore stand to benefit, as will another 150,000 rank-and-file workers with the upping of the non-workmen salary ceiling from $2,000 to $2,500.

Labour Member of Parliament (MP) and MP for Nee Soon GRC Patrick Tay, a strong supporter of this amendment and the Director of the National Trades Union Congress’ (NTUC) Legal Services Department and the PME Unit says the passage of the bill has given him added faith and confidence in the spirit of tripartism in Singapore.

“I am particularly impressed by how forward looking the Ministry of Manpower and the Singapore National Employers Federation have been in our negotiations and enabling these changes for the betterment of the workforce of today and tomorrow,” said Mr Tay.

Mr Tay also highlighted that the amendments are specially necessary now with the increasing proportion of PMEs in the workforce.

“As for PMETs, the current one-to-one ratio with rank-and-file workers is projected to increase to two thirds of the working population by 2030. To underscore this shift, there has also been an exponential growth of degree holders from 308,000 in 2002 to 622,000 in 2012,” he said.

Mr Tay further highlighted the added protection that the amendment bill offers to PMEs on issues of salary payments, unauthorised deductions, public holiday entitlements and statutory paid sick leave.

The amendments on the Employment Act (EA) also covers maternity protection and benefits for female PMEs.

However, Mr Tay pointed out that legislation alone is insufficient to foster a fair workplace and that PMEs hope the Government can put in place a more rigorous fair employment framework and guidelines like the recent introduction of the Fair Consideration Framework.

“This entire effort augurs well for Singapore. It aptly embodies our mature industrial relations system and responsible employers and trade unions that are able to look beyond their narrow interest to discuss issues objectively and reach agreement for everyone's benefit,” Mr Tay concluded.
 

More Protection for Low-Wage Workers

With more protection offered to PMEs under the EA amendments, Labour MP and MP for Pasir Ris-Punggol GRC Zainal Sapari emphasised that more can also be done to protect low-wage workers.

Citing the Forbes survey commissioned by the NTUC’s Unit for Contract and Casual Workers in 2011, Mr Sapari highlighted some of the working conditions faced by low-wage workers in Singapore. “Potentially, there are just too many low-wage workers working but not issued with pay slips making them vulnerable to be taken advantage of by irresponsible employers who do not issue pay slips, possibly, to cover their tracks against unlawful employment practices or underpaying their workers.”

In addition to calling for the Ministry of Manpower to share the timeline for mandatory issuance of payslips, Mr Zainal who is also the Director of NTUC’s Unit for Contract and Casual Workers also urged the Government to
consider amending the Act where workers working on rest days be paid double salary regardless of whether it was requested by employee or employer.

He also urged the Government to makeit mandatory for employers to bear the payment for outpatient medicines as well.

Lastly, Mr Zainal asked the Government to support NTUC’s new U Care Centre in its quest to make a difference in the lives of low-wage workers.

On Eldercare Leave, Restrictive Clauses and Contract Workers

Labour Nominated MP Mary Liew also spoke up in support of the amendments to the EA Amendment Bill. Reinforcing the need to address certain lapses in an efficient manner, she highlighted three key areas of improvement:

First, Ms Liew asked the Government to make eldercare leave mandatory to allow workers greater flexibility to manage the demands in caring for ageing family members.

The second issue, is to look into restrictive clauses on employment contracts that are often overlooked by the worker and subsequently used as reasons for termination or even to the extent of preventing workers from seeking other employment.

The third key issue falls on how contract workers get shortchanged. “I would like to suggest that the EA protect the workers such that as long as the worker has not been employed elsewhere between employment contracts, the worker is deemed to have been under `continuous employment’,” Ms Liew appealed.

Original article written by Marcus Lin, and can be found in NTUC This Week (15 November 2013)