Amendments to the Employment Act

From 1 April 2016, all employers will be required to issue itemised pay slips and key employment terms (KETs) to employees covered under the Employment Act. There will also be a new framework to treat less severe breaches of the Employment Act.

The amendments of the Employment Act enable 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.

Employers can read more about the requirements for:

In addition, from 1 April 2016, MOM will set up a framework to treat less severe breaches of the EA as “civil breaches” which attract administrative penalties. For a start, the breaches are:

  1. Failure to issue itemised pay slips.
  2. Issuing inaccurate or incomplete pay slips.
  3. Failure to issue KETs in writing.
  4. Issuing inaccurate or incomplete KETs.
  5. Failure to maintain detailed employment records.
  6. Provision of inaccurate information to the Commissioner for Labour or inspecting officers without the intent to defraud and mislead.

Employers can tap on the assistance package for the following:

  • Blank payslips and KETs that can be filled in by hand
  • Software for generating itemised pay slips
  • One-to-one assistance for SMEs
  • Funding

Please click here for details on the assistance package.

Source: Ministry Of Manpower

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