The Ministry of Manpower (MoM) announced that PMEs earning up to SIN$4,500 (£2,246 approx.) each month would qualify for most employment rights for the first time from the 1 April 2014. Those employees who qualify will gain holiday and sick leave rights and will also be able to launch a claim for unfair dismissal against their employers, among other rights. PMEs will have to serve at least a year with a company before becoming eligible to bring unfair dismissal claims. PMEs earning more than SIN$4,500 will not qualify for the rights.
"Managers and executives are those with executive and supervisory functions," the MoM said in a document (7-page / 196KB PDF) explaining who will qualify as a PME. "These functions include the authority to influence or make decision on issues such as recruitment, discipline, termination of employment, assessment of performance and reward, or involvement in the formulation of strategies and policies of the enterprise, or the management and running of the business. Professionals are those with specialised skills and whose employment terms are comparable to those of executives and managers."
The changes form part of a raft of amendments being made to the Employment Act (EA) and Child Development Co-Savings Act (CDCA) in Singapore through the passing of the Employment, Parental Leave and Other Measures Bill (48-page / 267KB PDF) by Singapore law makers earlier this month.
How wide individual employees' employment rights are in Singapore currently depends on a number of factors, including what job those individuals perform and what they earn.
Under the reforms Singapore law makers have increased the amount of money that "non-workmen", such as clerks and sales staff, can earn before losing their eligibility for certain rights relating to rest days, hours of work and other work conditions. The threshold has been increased from SIN$2,000 to SIN$2,500 per month to reflect the fact that the average salary of the non-workman has increased by 25% since the Employment Act was last reviewed in 2008, the MoM said.
The threshold for triggering the loss of the same employment rights by workmen will remain unaltered at $SIN4,500. The MoM said that "highly paid and skilled workmen are able to negotiate for favourable employment terms without having to be protected" but has said it will monitor the need to increase the threshold figure.
A new salary cap will also be set at SIN$2,250 for non-workers for the purpose of calculating over-time payments, the MoM said.
Among the other changes being made include clarifications to maternity and paternity rights to prevent parents claiming more leave than they are entitled to take by claiming leave for each child they have.
Further amendments have also been made to the enforcement regime. Businesses in Singapore could be fined up to SIN$15,000 for a first-time offence of failing to pay salaries, whilst staff responsible could also be served with a six month jail sentence. Repeat offenders could face a SIN$30,000 fine and a year in prison.
"Individuals such as directors or partners of companies will be made more accountable for EA offences committed by the company," the MoM said in a statement. "Such individuals, who are primarily responsible for the offence and have failed to exercise reasonable supervision or oversight, will be presumed to be negligent and be held liable. He/she will be able to rebut the presumption by proving that he/she has exercised reasonable supervision or oversight to avoid commission of the EA offence."
Technology law expert Bryan Tan of Pinsent Masons MPillay, the Singapore joint law venture partner of Pinsent Masons, said that the reforms signify "the increasing evolution of Singapore employment laws" and offers further protection for the middle classes.
"We also envisage that there will be further amendments carried out in the near future as the government seeks to balance the rights of employees and improve workplace practices," he said.
