Amendments to the Singapore Employment Act from 1 April 2016

All employers will be required to issue itemised payslips and key employment terms (KETs) to employees covered under the Employment Act.  A new framework will simultaneously be set up to treat less severe breaches of the Employment Act as “civil breaches” which will attract administrative penalties.


The breaches are:
1. Failure to issue Itemised Payslips
2. Failure to issue KETs in writing
3. Failure to maintain detailed Employment Records
4. Provision of inaccurate information to the Commissioner for Labour or inspecting officers without the intent to defraud and mislead


Employers can read more about the requirements:
• Itemised Payslips
Key Employment Terms (KETs)
Keeping Employment Records

 

Itemised Payslips
From 1 April 2016, all employers will be required to issue itemised payslips to employees covered under the Employment Act.


Requirements
Employers must issue itemised payslips to all employees covered by the Employment Act:


When
• At least once a month
• Together with payment to employee
• If unable, to be given within three working days of payment
• In the case of termination or dismissal, payslip must be given together with outstanding salary

 

Format
• Soft or hard copy (including handwritten)

 

Items to include
Payslips must include the items below, unless an item is not applicable:

1. Full name of employer

 

2. Full name of employee


3. Date of payment (or dates, if the payslips consolidate multiple payments)

 

4. Basic salary
For hourly, daily or piece-rated workers, to indicate all of the following:
a. Basic rate of pay, eg $X per hour
b. Total number of hours or days worked or pieces produced

 

5. Start and end date of salary period

 

6. Allowances paid for salary period, such as:
a. All fixed allowances, eg transport
b. All ad-hoc allowances, eg one-off uniform allowance

 

7. Any other additional payment for each salary period, such as:
a. Bonuses
b. Rest day pay
c. Public holiday pay


8. Deductions made for each salary period, such as:
a. All fixed deductions (eg employee’s CPF contribution)
b. All ad-hoc deductions (eg deductions for no-pay leave, absence from work)

 

9. Overtime hours worked

 

10. Overtime pay

 

11. Start and end date of overtime payment period (if different from item 5, start and end date of salary period)

 

12. Net salary paid in total


If overtime pay does not apply, the payslip need not include items 9 to 11. If payments are made more than once a month, employers can consolidate payslips. The consolidated payslip must contain details of all payments made since the last payslip.

 


Keeping records
Employers must keep a record of all payslips issued:

Format
• Soft or hard copy (including handwritten)

Duration
• For current employees – latest two years
• For ex-employees – last two years, to be kept for one year after the employee leaves employment

 

Key Employment Terms (KETs)
From 1 April 2016, all employers are required to issue Key Employment Terms (KETs) in writing to employees covered under the Employment Act.


Requirements
Employers must issue KETs in writing to all employees who:

• Enter into a contract of service on or after 1 April 2016
• Are covered by the Employment Act
• Are employed for 14 days or more

 

When
• Within 14 days from the start of employment

 

Format
• Soft or hard copy (including handwritten)
• Common KETs, eg leave policy, medical benefits, can be provided in employee handbook or company intranet

 

Items to include
KETs must include the items below, unless the item is not applicable:

1. Full name of employer

 

2. Full name of employee

 

3. Job title, main duties and responsibilities

 

4. Start date of employment

 

5. Duration of employment (if employee is on fixed-term contract)

 

6. Working arrangement, such as:
a. Daily working hours (eg 8.30am to 6pm)
b. Number of working days per week (eg six)
c. Rest day (eg Saturday)

 

7. Salary period

 

8. Basic salary
For hourly, daily or piece-rated workers, employers should also indicate the basic rate of pay (eg $X per hour, day or piece)

 

9. Fixed allowances

 

10. Fixed deductions


11. Overtime payment period (if different from item 7, salary period)

 

12. Overtime rate of pay

 

13. Other salary-related components, such as Bonuses and Incentives

 

14. Type of leave such as:
a. Annual leave
b. Outpatient sick leave
c. Hospitalization leave
d. Maternity leave
e. Childcare leave

 

15. Other medical benefits such as:
a. Insurance
b. Medical benefits
c. Dental benefits

 

16. Probation period

 

17. Notice period

 

If the employee is a PME and overtime pay does not apply, the KETs issued do not need to include items 11 and 12.

 

Keeping Employment Records
From 1 April 2016, all employers will be required to maintain detailed employment records of employees covered under the Employment Act.


Requirements
Employers must maintain records for all employees covered by the Employment Act.

 

Format
• Soft or hard copy (including handwritten)

 

Duration
• For current employees – latest two years
• For ex-employees – last two years, to be kept for one year after the employee leaves employment

 

What to record
The records are in two categories:
• Employee Records
• Salary Records


Employee records
Items to include:

1. Address

2. NRIC number or for non-citizens, work pass number and expiry date

3. Date of birth

4. Gender

5. Date of starting employment

6. Date of leaving employment

7. Working hours, including duration of meals and tea breaks

8. Dates and other details of public holidays and leave taken

 

Salary records
The items to include are the same as for itemised payslips.

 

Resources:
Guidebook on Key Employment Terms and Itemised Payslips

Tripatrite Guideline on the Issuance of Itemised Payslips

Tripatrite Guideline on the Issuance of Written Key Employment Terms