Singapore – Employment legislation review to protect “vulnerable workers” in non-traditional work arrangements and work permit holders

28 October 2013

Susan de Silva

The Singapore Manpower Ministry has invited public views for phase 2 of its employment reforms. Key changes in phase 1 included extending the basic protections under the Employment Act (EA) to junior professionals, managers & executives earning up to S$4,500 per month, adding to the traditionally protected categories of non-managerial/non-executive employees and workmen.

Phase 2 focuses on protecting workers in “non-traditional work arrangements” and foreign employees holding work permits.

Non-traditional workers

Fixed-term contract employees are already protected by the EA as “employees”. However because a minimum period of 3 months’ continuous service is required to qualify for certain benefits under the EA, employers may place them on  contracts which expire before the end of 3 months’ service, with short breaks in between, to avoid having to provide the benefits. Employees may also be placed on recurrent fixed term contracts which are renewed multiple times, and then allowed to expire without notice of non-renewal. The Ministry is reviewing protections for such employees.

Freelancers are individuals who operate their own business of providing services without employing other workers. Freelancers are not covered by the EA since they are not employees. However, many freelancer arrangements resemble employer-employee relationships. The Ministry is reviewing whether such individuals should be accorded statutory protections given to employees.

Work permit holders

Lower income foreign workers hold work permits which currently restrict them to working for the employer and industry stated on the work permit. The Ministry is reviewing whether such foreign workers should be allowed to change employers.

Low wage workers

Possible considerations under review for low wage workers are written employment terms to avoid disputes on the terms of employment, and electronic payment of workers’ salaries for timely payments.

This article is part of the Asia Employment Law Newsletter for November 2013

Authors

de Silva-Susan

Susan de Silva

Consultant
Singapore

Call me on: +65 6534 5266