Amendments to Employment Act (w.e.f 1 Apr 2016)

StaffOnDemand Blog

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.

The amendments of the Employment Act enables employees to better understand how their salary is calculated and their employment terms and benefits. This also helps employers prevent misunderstandings and minimise disputes at the workplace.

Itemised Payslips

From 1 April 2016, all employers will be required to issue itemised payslips to employees covered under the Employment Act. The payslips can be in soft/hard copy formats (including handwritten), and must be provided at least once a month together with payment to employee (or within 3 working days of payment).

The details of the requirements can be found here.

Keeping Payslip Records

Current employers must keep a record of all payslips issued in soft/hard copy formats (including handwritten) for the latest 2 years, and for employees that have left, employers should keep the last 2 years’ records for 1 year after the employee leaves employment.

Key Employment Terms

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

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.

And the KETs must be issued within 14 days from the start of employment.

The details of what KETs are to be included can be found here.

Resources / Guidance on Complying with Employment Act Changes

Need guidance on compliance with Employment Act Changes? Check out the list of resources and guidance available here.

 

Credits

Amendments to the Employment Act, Ministry of Manpower Singapore (Last update: 2 Sep 2015)

http://www.mom.gov.sg/employment-practices/employment-act/amendments-to-the-act