Techblog
The WorkRight initiative - Knowing the rights of your employees
Keeping up to date with changing requirements for each of your employees can seem complicated, but the government's WorkRight initiative ensures all businesses are on a level playing field.
Business owners in Singapore now have little excuse for not knowing their responsibilities towards employees, and failing to understand employment laws could cost companies in the long run.
Singapore's Ministry of Manpower started its WorkRight campaign more than a year ago, with the initiative aimed at increasing compliance with employment regulations by educating both employees and employers. The initiative also focused on ensuring correct payments are made to the government's Central Provident Fund (CPF) by employers and employees.
The Ministry has not relied solely on education, making use of its enforcement powers to both recover unpaid employee entitlements and punish wayward employers. Last year, Acting Minister for Manpower Mr. Tan Chuan-Jin said the WorkRight initiative had led to the Ministry intervening on behalf of more than 22,000 employees. Non-compliance with employment or CPF regulations can lead to fines or even imprisonment, so it is worthwhile checking that you understand the rules that apply to your business:
Which of your employees are covered?
The Employment Act covers almost every employee (regardless of nationality) who is under a contract of service with you. There are a few exceptions, such as managers and executives (those who earn basic monthly salaries of $4,500 and below are partially covered for payment of salary). It also excludes seamen and domestic workers as well as statutory board and government employees.
How many hours do your employees regularly work?
Employees can work up to eight hours a day for 5.5 days a week at regular hourly rates. Your employees are also entitled to at least one rest day a week without pay. Beyond this, overtime of 1.5 times the hourly rate applies.
How do you pay your employees?
Under the Act, employees must be paid for their regular hours at least monthly and within seven days of the end of the salary period. Any overtime must be paid within 14 days after the salary period.
Do you know the holidays your employees are entitled to?
The number of annual leave days an employee receives depends on how many years they have been with your business, but varies between minimums of seven and 14 days a year. This does not include Singapore's 11 public days.
What about sick leave?
Employees who have been with a business six months or more have up to 14 days of usual sick leave available, but are also entitled to 60 paid days of leave if they are hospitalised.
Have you paid enough CPF contributions?
As an employer, you are responsible for ensuring that contributions from both the business and employees are paid. CPF contributions must be made for all employees who are Singapore Citizens/Singapore Permanent Residents earning more than $50 a month. If your employee earns more than $50 but less than $500 a month, they are not required to make contributions on their part.
Employers must pay contributions based on the total amount paid each month including any overtime. Business owners should check with a CPF Service Centre if they are concerned about what contributions they should be making.
Taking the time to make sure your business is complying helps your business to not just avoid penalties, it also demonstrates your commitment to your employees, providing the basis for a good relationship between your business and staff.