Singapore – Employers Must Issue Key Employment Terms And Itemised Payslips From 1 April 2016.

15 April, 2016

 

The Employment (Employment Records, Key Employment Terms and Pay Slips) Regulations 2016 (KET Regulations), as well as the Employment (Administrative Penalties) Regulations 2016 (PenaltiesRegulations) came into operation on 1 April 2016.

 

The KET Regulations provide for:

 

1. Maintenance of employee records: Employers must retain for a specified period, employee records containing information about the employment of current and former employees. Such records will replace the previous requirement for employers to maintain a register of employees and record of workmen.
2. Issuance of written key employment terms: An employer must provide key employment terms about such matters as salary (including e.g. bonuses and incentives), working arrangements, type(s) of leave, deductions, etc., in writing to all employees who enter into a contract of service on or after 1 April 2016.
3. Itemised payslips: Employers must issue itemised payslips (in either hard or soft copy) to employees. Such payslips must include details such as basic salary, date of payment, overtime hours and overtime pay etc.
4. The changes above affect all workers covered under the Employment Act (Cap. 91) (EA) (i.e. all employees on a contract of service, except professionals, managers or executives earning more than S$4,500 per month, domestic workers, public servants and seafarers).

 

The Penalties Regulations provide for:

 

1. Payment of administrative penalties: From 1 April 2016, certain less severe breaches of the EA will be regarded as ‘civil contraventions’, attracting administrative penalties. Such breaches include a failure to comply with the requirements under the Regulations (above), e.g. a failure to issue written key employment terms or itemised payslips.
2. Internal reconsideration and appeal: As part of the framework to regard less severe breaches of the EA as ‘civil contraventions’, the Penalties Regulations also provide for employers who have been issued a contravention notice to request for an internal reconsideration of such notice or to appeal to the High Court.
3. Methods of issuing key employment terms and itemised payslips: The Penalties Regulations provide for the methods of issuing such documents to an individual, partnership, body corporate, or an unincorporated association.
4. Crucially, employers must now adapt their HR practices to ensure compliance with the regulations. In particular, employers must now provide every new hire with the specified key employment terms, and they would be well-advised to review their existing employment templates to ensure compliance with this requirement.