What 2016 means for your business

What 2016 means for your business

Following the review of the Employment Act, businesses in Singapore will be required to follow three new guidelines with effect from 1st April 2016.
1. Issue key employment terms (KETs) in writing to employees covered under the Employment Act
2. Issue itemised payslips to employees covered under the Employment Act
3. Maintain detailed employment records of employees covered under the Employment Act

Things You Should Know About Key Employment Terms (KETs)
1. Any employee who has been hired after 1st April or has been employed for at least 14 days are eligible to receive written KETs
2. KETs can be issued in either soft or hard copy 14 days after the start of employment or immediately, whichever is soonest
3. KETs must include (where applicable):

a. Details of Employment

i. Full name of employer
ii. Full name of employee
iii. Job title, main duties and responsibilities
iv. Date of commencement
v. Duration of employment (if on fixed-term contract)

b. Working Hours and Rest Days
c. Salary

i. Salary period
ii. Basic salary
iii. Fixed allowances
iv. Fixed deductions
v. Overtime payment period (if different from salary period)
vi. Overtime pay rate
vii. Other salary-related components (e.g. bonuses, incentives, etc.)

d. Leave and Medical Benefits
e. Others (e.g. probation/notice period, etc.)

For more information about issuing KETs, you can visit the official Ministry of Manpower website.

Things You Should Know About Itemised Payslips
1. Itemised payslips must be issued at least once a month to employees, together with payment or within three working days of payment
2. In the event of termination/dismissal, itemised payslips must be given together with outstanding salary
3. Itemised payslips must include (where applicable):

a. Salary Payment Details

i. Name of employer
ii. Name of employee
iii. Date(s) of payment

b. Basic Salary Details

i. Basic salary; If hourly, daily or piece-rated workers, indicate:

1. Basic rate of pay
2. Total number of hours or days worked or pieces produced

ii. Start and end date of salary period

c. Allowances, Deductions and Others

i. Allowances paid for salary period
ii. Any other additional payment for each salary period
iii. Deductions made for each salary period

d. Overtime Salary Details

i. Overtime hours worked
ii. Overtime pay
iii. Start and end date of overtime payment period

e. Net Salary
 

Exceptions: You may consolidate payslips if you make payments more than once a month. The consolidated payslip must contain details of all payments made since the last payslip.

For more information about issuing itemised payslips, you can visit the official Ministry of Manpower website.

Things You Should Know About Maintaining Employment Records
1. Employment records are defined as both employee and salary records
2. Employers must keep a record (soft or hard copy) of all payslips issued, dating back for:

a. Two years latest (current employees)
b. Last two years, kept for one year after the employee leaves employment

For more information about maintaining employment records, please visit the official Ministry of Manpower website.

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