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Changes in Employment Act- April 2014

There is many changes of recruitment and human resource policy started 2013 and the upcoming will be the Employment Act (EA) to take effect on 1 April 2014. With reference to the MOM website, the summary of the major changes are :

Employment Act Changes

1. Protection for More workers

a. All the non-workmen( ie. clerical staff) will be protected under EA from the monthly salary up to $2,500. ( from previous $2,000)

b. Professionals, Managers and Executives (PMEs) earning up to $4,500 will also be protected against unfair dismissal and for sick leave benefits.

c. A maximum of 25% sub-cap is allowed for deduction to employee’s salaries to prevent excessive deduction and holds to their salaries.

2. Flexibility  for Employer

a.  Overtime pay for non-workmen will be capped at the salary level of $2,250.

b. The PMEs earning up to $4,500 will need to have served with the same employer for at least 12 months to eligible to seek  against unfair dismissal, where notice is given.

c. Employers is allowed option to grant time-off in-lieu for PMEs who are required to work on public holidays, subject to mutual agreement.

3. The employer is encourage to provide pay slips to all employees.

The HR of SMEs shall be taking notes and prepare for the change to avoid any disputes and misunderstanding which can affect the morale of the co-workers.

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