Employment (Amendment) Act 1995 - Singapore Statutes Online

REPUBLIC OF SINGAPORE

GOVERNMENT GAZETTE

ACTS SUPPLEMENT

Published by Authority

NO. 42]

Friday, December 15

[1995

The following Act was passed by Parliament on 1st November 1995 and assented to by the President on 18th November 1995:—

Employment (Amendment) Act 1995

(No. 36 of 1995)

I assent.

ONG TENG CHEONG

President.

18th November 1995.

Date of Commencement: 1st March 1996

An Act to amend the Employment Act (Chapter 91 of the 1985 Revised Edition) and to make related amendments to the Industrial Relations Act (Chapter 136 of the 1985 Revised Edition).

Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows:

Short title and commencement

1. This Act may be cited as the Employment (Amendment) Act 1995 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.

Amendment of section 2

2. Section 2 of the Employment Act is amended —

(a)

by inserting, immediately before the definition of “child”, the following definitions:

“ “approved hospital” means a hospital which the Minister, by notification in the Gazette, declares as an approved hospital;

“basic rate of pay” means the total amount of money (including wage adjustments and increments) to which an employee is entitled under his contract of service either for working for a period of time, that is, for one hour, one day, one week, one month or for such other period as may be stated or implied in his contract of service, or for each completed piece or task of work but does not include —

(a)	additional payments by way of overtime payments;
(b)	additional payments by way of bonus payments or annual wage supplements;
(c)	any sum paid to the employee to reimburse him for special expenses incurred by him in the course of his employment;
(d)	productivity incentive payments;
(e)	any allowance however described;”;

(b)

by deleting the definition of “domestic servant” and substituting the following definition:

“ “domestic worker” means any house, stable or garden servant or motor car driver, employed in or in connection with the domestic services of any private premises;”;

(c)

by deleting the words “domestic servant” in the eighth line of the definition of “employee” and substitutingr the words “domestic worker”;

(d)

by inserting, immediately after the definition of “employment exchange”, the following definition:

“ “gross rate of pay” means the total amount of money including allowances to which an employee is entitled under his contract of service either for working for a period of time, that is, for one hour, one day, one week, one month or for such other period as may be stated or implied in his contract of service, or for each completed piece or task of work but does not include —

(a)	additional payments by way of overtime payments;
(b)	additional payments by way of bonus payments or annual wage supplements;
(c)	any sum paid to the employee to reimburse him for special expenses incurred by him in the course of his employment;
(d)	productivity incentive payments;
(e)	travelling, food or housing allowances;”;

(e)

by deleting the definition of “medical officer” and substituting the following definitions:

“ “medical officer” means a dentist registered under the Dentists Act (Cap. 76), or a medical practitioner, employed by the Government or by an approved hospital;

“medical practitioner” means a medical practitioner registered under the Medical Registration Act (Cap. 174);”;

(f)

by inserting, immediately after the definition of “principal”, the following definition:

“ “productivity incentive payment” means a variable payment, whether made annually or otherwise, to an employee as a reward for —

(a)	an improvement to the employee’s performance; or
(b)	an increase in the employee’s productivity or contribution to the employer’s business, trade or undertaking,

but does not include any payment which forms part of the employee’s regular remuneration;”;

(g)

by deleting the definition of “rate of pay”; and

(h)

by deleting the words “domestic servant” in the last line of paragraph (a) of the definition of “workman” and substituting the words “domestic worker”.

Amendment of section 11

3. Section 11 of the Employment Act is amended —

(a)	by inserting, immediately after the word “salary” in the fifth line of subsection (1), the words “at the gross rate of pay”;
(b)	by deleting the words “calculated in accordance with the appropriate formula in section 51” in the penultimate and last lines of subsection (1) and substituting the words “the gross rate of pay for one day’s work”;
(c)	by deleting subsection (2); and
(d)	by renumbering subsection (3) as subsection (2).

Amendment of section 14

4. Section 14 of the Employment Act is amended by inserting, immediately after subsection (7), the following subsection:

“(7A) Where any amount to be paid by an employer under subsection (4) is not paid in accordance with the direction of the Minister and the employer has been convicted of an offence under subsection (7), the amount or so much thereof as remains unpaid shall be recoverable by the court as if it were a fine and the amount so recoverable shall be paid to the employee entitled to payment under the direction of the Minister.”.

Amendment of section 18

5. Section 18 of the Employment Act is amended —

(a)	by deleting subsection (1); and
(b)	by renumbering subsections (2), (3) and (4) as subsections (1), (2) and (3), respectively.

New section 18A

6. The Employment Act is amended by inserting, immediately after section 18, the following section:

“Transfer of employment

18A.—(1) If an undertaking (whether or not it is an undertaking established by or under any written law) or part thereof is transferred from one person to another —

(a)	such transfer shall not operate to terminate the contract of service of any person employed by the transferor in the undertaking or the part transferred but such contract of service shall have effect after the transfer as if originally made between the person so employed and the transferee; and
(b)	the period of employment of an employee in the undertaking or part transferred at the time of transfer shall count as a period of employment with the transferee, and the transfer shall not break the continuity of the period of employment.

(2) Without prejudice to subsection (1), on completion of a transfer referred to in that subsection —

(a)	all the transferor’s rights, powers, duties and liabilities under or in connection with any such contract of service, shall be transferred by virtue of this section to the transferee;
(b)	any act or omission done before the transfer by the transferor in respect of that contract of service shall be deemed to have been done by the transferee; and
(c)	any act or omission done before the transfer by an employee employed in the undertaking or part transferred in relation to the transferor shall be deemed to have been done in relation to the transferee.

(3) On the completion of a transfer referred to in subsection (1), it is hereby declared for the avoidance of doubt that the terms and conditions of service of an employee whose contract of service is preserved under that subsection shall be the same as those enjoyed by him immediately prior to the transfer.

(4) Subsections (1) and (2) shall not transfer or otherwise affect the liability of any person to be prosecuted for, convicted of and sentenced for any offence.

(5) As soon as it is reasonable and before a transfer under subsection (1) takes place, to enable consultations to take place between the transferor and the affected employees and between the transferor and a trade union of affected employees (if any), the transferor shall notify the affected employees and the trade union of affected employees (if any) of —

(a)	the fact that the transfer is to take place, the approximate date on which it is to take place and the reasons for it;
(b)	the implications of the transfer and the measures that the transferor envisages he will, in connection with the transfer, take in relation to the affected employees or, if he envisages no measures will be so taken, that fact; and
(c)	the measures that the transferee envisages he will, in connection with the transfer, take in relation to such of those employees as, by virtue of subsection (1), become employees of the transferee after the transfer or, if he envisages that no measures will be so taken, that fact.

(6) As soon as it is reasonable, the transferee shall give the transferor such information so as to enable the transferor to perform the duty imposed on him by virtue of subsection (5)(c).

(7) Where the Commissioner considers that there has been an inordinate delay —

(a)	by the transferor in notifying the affected employees or a trade union of affected employees of the matters set out in subsection (5); or
(b)	by the transferee in notifying the transferor of information set out in subsection (6),

the Commissioner may, by notice in writing, direct the transferor to comply with subsection (5) or the transferee to comply with subsection (6), as the case may be, within such time as may be specified in the notice.

(8) Where, immediately before a transfer referred to in subsection (1), a trade union is recognised by the transferor for the purposes of the Industrial Relations Act (Cap. 136) in respect of any employee who in consequence of the transfer becomes the employee of the transferee, the trade union shall, after the transfer —

(a)

be deemed to be recognised by the transferee for the purposes of the Industrial Relations Act if, after the transfer, the majority of employees employed by the transferee are members of the trade union; or

(b)

in any other case, be deemed to be recognised by the transferee only for the purpose of representing the employee on any dispute arising —

(i)	from any collective agreement that was entered into between the transferor and the trade union while the collective agreement remains in force; or
(ii)	from the transfer of the employee’s employment from the transferor to the transferee under this section.

(9) A dispute or disagreement between the transferor and an employee or the transferee and an employee arising from a transfer under subsection (1), whether before or after the transfer, may be referred by a party to the dispute or disagreement to the Commissioner under section 115 and shall be deemed to be a dispute to which that section applies.

(10) Where a dispute or disagreement has been referred to the Commissioner pursuant to subsection (9), the Commissioner shall, in addition to the powers conferred under section 115, have the powers —

(a)	to delay or prohibit the transfer of employment of the employee to the dispute from the transferor to the transferee under subsection (1); and
(b)	to order that the transfer of employment of the employee to the dispute from the transferor to the transferee under subsection (1) be subject to such terms as the Commissioner considers just.

(11) The Minister may make such regulations as he considers necessary or expedient to give effect to the provisions of this section and, in particular, may make regulations —

(a)	to provide for the form and manner of consultations between the transferor and the affected employees and between the transferor and a trade union of affected employees under subsection (5);
(b)	for the type of information that must be communicated by the transferor to the affected employees and to a trade union of affected employees under subsection (5), or by the transferee to the transferor under subsection (6); and
(c)	to provide for a mechanism for conciliation of disputes arising out of or relating to a transfer referred to in subsection (1) between any employer and employee.

(12) Nothing in this section shall prevent a transferee of an undertaking referred to in subsection (1) and an employee whose contract of service is preserved under that subsection or a trade union representing such an employee from negotiating for and agreeing to terms of service different from those contained in the contract of service that is preserved under that subsection.

(13) In this section —

“affected employee” means any employee of the transferor who may be affected by a transfer under subsection (1) or may be affected by the measures taken in connection with such a transfer;

“trade union” means a trade union which has been —

(a)	registered under any written law for the time being in force relating to the registration of trade unions; and
(b)	accorded recognition by the employer pursuant to section 16(1) of the Industrial Relations Act (Cap. 136);

“transfer” includes the disposition of a business as a going concern and a transfer effected by sale, amalgamation, merger, reconstruction or operation of law;

“undertaking” includes any trade or business.”.

New section 20A

7. The Employment Act is amended by inserting, immediately after section 20, the following section:

“Computation of salary for incomplete month’s work

20A.—(1) If a monthly-rated employee has not completed a whole month of service because —

(a)	he commenced employment after the first day of the month;
(b)	his employment was terminated before the end of the month;
(c)	he took leave of absence without pay for one or more days of the month; or
(d)	he took leave of absence to perform his national service under the Enlistment Act (Cap. 93),

the salary due to him for that month shall be calculated in accordance with the following formula:

(2) In calculating the number of days actually worked by an employee in a month under subsection (1), any day on which an employee is required to work for 5 hours or less under his contract of service shall be regarded as half a day.”.

Amendment of section 28

8. Section 28 of the Employment Act is amended by deleting subsection (2) and substituting the following subsection:

“(2) The amount of any deduction referred to in subsection (1) shall in no case bear to the salary payable at the gross rate of pay to the employee in respect of the salary period for which the deduction is made a larger proportion than the period for which he was absent bears to the total period, within such salary period, during which he was required to work by the terms of his employment, and in the case of a monthly-rated employee the amount of deduction in respect of any one day shall be the gross rate of pay for one day’s work.”.

Amendment of section 33

9. Section 33 of the Employment Act is amended by deleting the words “$1,250 a month” and substituting the words “$1,600 a month (excluding overtime payments, bonus payments, annual wage supplements, productivity incentive payments and any allowance however described)”.

Repeal and re-enactment of section 35

10. Section 35 of the Employment Act is repealed and the following section substituted therefor:

“Application of Part IV to workmen and certain other employees

35. The provisions of this Part shall apply —

(a)	to workmen; and
(b)	to employees who are in receipt of a salary not exceeding $1,600 a month (excluding overtime payments, bonus payments, annual wage supplements, productivity incentive payments and any allowance however described) or such other amount as may be prescribed by the Minister.”.

Amendment of section 36

11. Section 36(1) of the Employment Act is amended by inserting, immediately after the words “rest day” in the second line, the words “without pay”.

Amendment of section 37

12. Section 37 of the Employment Act is amended by deleting subsections (2) and (3) and substituting the following subsections:

“(2) An employee who at his own request works for an employer on a rest day shall be paid for that day —

(a)

if the period of work does not exceed half his normal hours of work, a sum at the basic rate of pay for half a day’s work;

(b)

if the period of work is more than half but does not exceed his normal hours of work, a sum at the basic rate of pay for one day’s work; or

(c)

if the period of work exceeds his normal hours of work for one day —

(i)	a sum at the basic rate of pay for one day’s work; and
(ii)	a sum at the rate of not less than one and a half times his hourly basic rate of pay for each hour or part thereof that the period of work exceeds his normal hours of work for one day.

(3) An employee who at the request of his employer works on a rest day shall be paid for that day —

(a)

if the period of work does not exceed half his normal hours of work, a sum at the basic rate of pay for one day’s work;

(b)

if the period of work is more than half but does not exceed his normal hours of work, a sum at the basic rate of pay for two days’ work; or

(c)

if the period of work exceeds his normal hours of work for one day —

(i)	a sum at the basic rate of pay for two days’ work; and
(ii)	a sum at the rate of not less less than one and a half times his hourly basic rate of pay for each hour or part thereof that the period of work exceeds his normal hours of work for one day.

(3A) In this section —

(a)

“normal hours of work” —

(i)	means the number of hours of work (not exceeding the limits applicable to an employee under section 38 or 40, as the case may be) that is agreed between an employer and an employee to be the usual hours of work per day; or
(ii)	in the absence of any such agreement, shall be deemed to be 8 hours a day; and
(b)	an employee’s “hourly basic rate of pay” is to be calculated in the same manner as for the purpose of calculating payment due to an employee under section 38 for working overtime.”.

Amendment of section 38

13. Section 38 of the Employment Act is amended —

(a)	by deleting the words “hourly rate” in the fourteenth line of subsection (3) and substituting the words “hourly basic rate”;
(b)	by deleting subsection (5);
(c)	by deleting the words “hourly rate” in the second line of subsection (6) and substituting the words “hourly basic rate”;
(d)	by deleting the words “monthly rate” in the second line of subsection (6)(a) and substituting the words “monthly basic rate”; and
(e)	by inserting, immediately after the words “total weekly pay” in subsection (6)(b), the words “at the basic rate of pay”.

New section 41A

14. The Employment Act is amended by inserting, immediately after section 41, the following section:

“Power to exempt

41A.—(1) The Minister may, after considering the operational needs of the employer and the health and safety of the employee or class of employees, by order in writing exempt an employee or any class of employees from sections 38(1), (4) and (8) and 40 (3) subject to such conditions as the Minister thinks fit.

(2) Where the Minister exempts an employee or any class of employees from section 38(1), (4) or (8) or 40 (3), the employer shall display the order or a copy thereof conspicuously in the place where the employee or class of employees are employed.”.

Amendment of section 42

15. Section 42 of the Employment Act is amended —

(a)	by deleting the words “ordinary rate” wherever they appear in subsection (1) and substituting in each case the words “gross rate”;
(b)	by deleting the words “ordinary rate” in the fifth line of subsection (4) and substituting the words “basic rate”;
(c)	by deleting the words “ordinary rate” in the sixth line of subsection (4) and substituting the words “gross rate”; and
(d)	by deleting the words “ordinary rate” in subsection (6) and substituting the words “gross or basic rate”.

Amendment of section 43

16. Section 43 of the Employment Act is amended —

(a)	by inserting, immediately after the words “An employee” in the first line of subsection (1), the words “who has served an employer for a period of not less than 3 months”;
(b)	by inserting, immediately after the words “An employee” in the first line of subsection (2), the words “who has served an employer for a period of not less than 3 months but”; and
(c)	by deleting the words “ordinary rate” wherever they appear in subsection (7) and substituting in each case the words “gross rate”.

Amendment of section 44

17. Section 44 of the Employment Act is amended —

(a)

by deleting the words “12 months” in the second line of subsection (1) and substituting the words “6 months”;

(b)

by deleting the words “duly registered” in the third line of subsection (1) and in subsection (3)(a); and

(c)

by deleting subsection (4) and substituting the following subsections:

“(4) The employer shall pay the employee for every day of such sick leave —

(a)	where no hospitalisation is necessary, at the gross rate of pay excluding any allowance payable in respect of shift work; and
(b)	where hospitalisation is necessary, at the gross rate of pay.

(4A) Notwithstanding subsection (4), no employee shall be entitled to be paid sick leave on a rest day or on a holiday to which he is entitled under section 36 or 42 or on any day of paid annual leave or on a day when he is not required to work under his contract of service or on a day when he is on leave of absence without pay granted by the employer at his request.”.

Repeal of section 51

18. Section 51 of the Employment Act is repealed.

Amendment of section 53

19. Section 53 of the Employment Act is amended by deleting subsection (3) and substituting the following subsection:

“(3) Notwithstanding subsection (1) —

(a)	an employer and his employees or a trade union representing his employees may negotiate for and agree to terms of service relating to leave more favourable than those contained in sections 43 and 44; and
(b)	it shall not be an offence for an employer to grant to his employees terms of service relating to leave more favourable than those contained in sections 43 and 44.”.

Amendment of section 65

20. Section 65(2) of the Employment Act is amended by deleting the words “Part XIV” and substituting the words “Part XV”.

New Part VIA

21. The Employment Act is amended by inserting, immediately after Part VI, the following Part:

“PART VIA

PART-TIME EMPLOYEES

Part-time employees

66A.—(1) In this Part,

“part-time employee” means an employee who is required under his contract of service with an employer to work for less than 30 hours a week.

(2) Notwithstanding subsection (1), the Minister may, by notification in the Gazette, declare that any employee or class of employees are not to be regarded as part-time employees for the purposes of this Part.

Minister may exclude or modify Act in relation to part-time employees

66B. The Minister may by regulations exclude or modify any or all of the provisions of this Act in their application to any part-time employee or class of part-time employees.”.

Amendment of heading of Part VII

22. Part VII of the Employment Act is amended by deleting the heading “DOMESTIC SERVANTS” and substituting the heading “DOMESTIC WORKERS”.

Amendment of section 67

23. The Employment Act is amended by deleting the words “domestic servants” wherever they appear in section 67 and in the marginal note and substituting in each case the words “domestic workers”.

Repeal and re-enactment of section 68

24. Section 68 of the Employment Act is repealed and the following section substituted therefor:

“Restriction on employment of children

68.—(1) No person shall employ a child in an industrial or a non-industrial undertaking except as provided for in subsections (2) and (3).

(2) A child may be employed in an industrial undertaking in which only members of the same family are employed.

(3) A child who is 12 years of age or above may be employed in light work suited to his capacity in a non-industrial undertaking.

(4) For the purposes of subsection (3), the certificate of a medical officer shall be conclusive upon the question of whether any work is suited to the capacity of any particular child.”.

Amendment of section 69

25. Section 69 of the Employment Act is amended —

(a)

by deleting the words “child or” in the first and in the fourth lines; and

(b)

by deleting the marginal note and substituting the following marginal note:

“Restriction on employment of young persons.”.

Repeal and re-enactment of section 72

26. Section 72 of the Employment Act is repealed and the following section substituted therefor:

“Approved employment

72.—(1) Sections 68 and 69 shall not apply —

(a)

to the employment of children and young persons —

(i)	in work approved and supervised by the Ministry of Education or the Institute of Technical Education, Singapore; and
(ii)	carried on in any technical, vocational or industrial training school or institute; and

(b)

to the employment of young persons under any apprenticeship programme approved and supervised by the Institute of Technical Education, Singapore.

(2) For the purposes of this section, the Institute of Technical Education, Singapore means the Institute of Technical Education, Singapore established under the Institute of Technical Education Act (Cap. 141A).”.

Amendment of section 76

27. Section 76 of the Employment Act is amended —

(a)	by deleting the words “ordinary rate” in the twelfth line of subsection (1) and in the fourth line of subsection (3) and substituting in each case the words “gross rate”; and
(b)	by inserting, immediately after the word “pay” in the fifth line of subsection (3), the words “at the gross rate of pay”.

Amendment of section 84

28. Section 84 of the Employment Act is amended —

(a)

by deleting the words “whose decision shall be final” in subsection (2) and substituting the words “within two months from the date of the employee’s confinement”; and

(b)

by inserting, immediately after subsection (2), the following subsections:

“(3) Where the Minister is satisfied that the employee has been dismissed without sufficient cause, he may, notwithstanding any rule of law or agreement to the contrary —

(a)	direct the employer to reinstate the employee in her former employment and pay the employee an amount equal to the wages that the employee would have earned had she not been dismissed by the employer; or
(b)	direct the employer to pay such amount of wages as compensation as the Minister may consider just and equitable having regard to all the circumstances of the case,

and the employer shall comply with the direction of the Minister.

(4) The decision of the Minister under subsection (3) shall be final and conclusive and shall not be challenged in any court.

(5) Any direction of the Minister under subsection (3) shall operate as a bar to any action for damages by the employee in any court in respect of the dismissal without sufficient cause under subsection (1).

(6) An employer who fails to comply with the direction of the Minister under subsection (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months or to both.

(7) Where any amount to be paid by an employer under subsection (3) is not paid in accordance with the direction of the Minister and the employer has been convicted of an offence under subsection (6), the amount or so much thereof as remains unpaid shall be recoverable by the court as if it were a fine and the amount so recoverable shall be paid to the employee entitled to payment under the direction of the Minister.”.

Amendment of section 95

29. Section 95(1) of the Employment Act is amended by deleting the words “rate of pay” in the second line and substituting the words “basic rate of pay”.

Amendment of section 96

30. Section 96(a) of the Employment Act is amended by deleting the words “rate of pay” and substituting the words “basic rate of pay”.

Amendment of heading of Part XIII

31. Part XIII of the Employment Act is amended by deleting the heading “INSPECTION” and substituting the heading “INSPECTION AND ENQUIRY”.

Amendment of section 103

32. Section 103 of the Employment Act is amended by deleting the marginal note and substituting the following marginal note:

“Inspections and enquiries.”.

Amendment of section 104

33. Section 104 of the Employment Act is amended by inserting, immediately after the word “inspection” in the first line, the words “or enquiry”.

Amendment of section 105

34. Section 105(1) of the Employment Act is amended —

(a)

by inserting, immediately after the word “inspection” in the first line, the words “or enquiry”;

(b)

by deleting paragraph (a) and substituting the following paragraph:

“(a)

examine orally any person supposed to be acquainted with the facts and circumstances of the employment of any person, and to reduce into writing the answer given or statement made by that person; and such person shall be bound to state truly the facts and circumstances with which he is acquainted concerning the employment; and the statement made by that person shall be read over to him and shall, after correction, be signed by him;”;

(c)

by inserting, immediately after the words “make copies of” in paragraph (d), the words “, take or remove”;

(d)

by deleting the word “and” at the end of paragraph (d); and

(e)

by deleting the full-stop at the end of paragraph (e) and substituting the words “; and” and by inserting immediately thereafter the following paragraph:

“(f)	take or remove for the purposes of an enquiry any other document concerning the employees or their employment.”.

Repeal and re-enactment of section 107

35. Section 107 of the Employment Act is repealed and the following section substituted therefor:

“Offences

107. Any employer who, without reasonable excuse, the proof of which shall lie on him —

(a)	neglects or refuses to produce any contract of service, book of account of salary, register or other documents concerning any employee or relating to that employee’s employment as required under section 105(1)(b);
(b)	hinders or obstructs the Commissioner or an inspecting officer in the exercise of the power under section 105(1); or
(c)	makes to the Commissioner or an inspecting officer exercising the power under section 105(1) a statement either orally or in writing which is false in a material particular,

shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000 or to imprisonment for a term not exceeding 6 months or to both.”.

New of section 107A

36. The Employment Act is amended by inserting, immediately before section 108 in Part XIV, the following section:

“Calculation of gross and basic rates of pay of employee employed on monthly rate or piece rates

107A.—(1) The gross rate of pay per day of an employee employed on a monthly rate or on piece rates shall be calculated in accordance with the second column of the Third Schedule.

(2) The basic rate of pay per day of an employee employed on a monthly rate or on piece rates shall be calculated in accordance with the third column of the Third Schedule.”.

New section 113A

37. The Employment Act is amended by inserting, immediately after section 113, the following section:

“Offence by body corporate

113A. Where an offence under this Act or any regulations made thereunder is committed by a body corporate, and it is proved to have been committed with the consent or connivance of, or to be attributable to any act or default on the part of, any director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, he, as well as the body corporate, shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.”.

Amendment of section 115

38. Section 115 of the Employment Act is amended by deleting subsection (4) and substituting the following subsection:

“(4) In this section, “employer” includes the transferor and the transferee of an undertaking or part thereof referred to in section 18A.”.

Amendment of section 124

39. Section 124(1) of the Employment Act is amended by deleting the words “or the Commissioner” wherever they appear and substituting in each case the words “, the Commissioner or an inspecting officer”.

Amendment of section 134

40. Section 134 of the Employment Act is amended by inserting, immediately after the word “complaining” in the last line, the words “, or where the offence was committed by an employer in respect of a liability to pay money to an employee, that employee”.

Repeal and re-enactment of section 140

41. Section 140 of the Employment Act is repealed and the following section substituted therefor:

“Power to amend First and Second Schedules

140. The Minister may, from time to time by notification in the Gazette, add to or amend the First or Second Schedule.”.

New Third Schedule

42. The Employment Act is amended by inserting, immediately after the Second Schedule, the following Schedule:

“THIRD SCHEDULE

Section 107A

Calculation of Gross and Basic Rates of Pay of An Employee Employed on A Monthly Rate or on Piece Rates

First column Item

Second column Calculation of gross rate of pay

Third column Calculation of basic rate of pay

1. Where an employee is employed on piece rates.

The gross rate of pay for one day is to be calculated by dividing the total salary including allowances but excluding —

The basic rate of pay for one day is to be calculated by dividing the total salary including wage adjustments and increments but excluding —

(a) additional payments by way of overtime payments;

(b) additional payments by way of bonus payments or annual wage supplements;

(d) productivity incentive payments; and

(e) travelling, food and housing allowances,

(e) any allowance however described,

earned by the employee during the period of 14 days immediately preceding the date of termination, day of absence or period of absence, holiday, day of leave or period of leave, or benefit period, as the case may be, by the number of days on which the employee actually worked during that period of 14 days.

earned by the employee during the period of 14 days immediately preceding the rest day or holiday, as the case may be, by the number of days on which the employee actually worked during that period of 14 days.

2. Where an employee is employed on a monthly rate of pay and the number of days on which the employee is required to work in a week is the same in every week under his contract of service.

The gross rate of pay for one day is to be calculated according to the following formula:

The basic rate of pay for one day is to be calculated according to the following formula:

3. Where an employee is employed on a monthly rate of pay and is required under his contract of service to work on a certain number of days in one week and on a different number of days in the following week in every period of two consecutive weeks.

The gross rate of pay for one day is to be calculated according to the following formula:

The basic rate of pay for one day is to be calculated according to the following formula:

4. Where an employee is employed on a monthly rate of pay and is required under his contract of service to work on different number of days in different weeks.

The gross rate of pay for one day is to be calculated according to the following formula or such other formula as may be approved by the Commissioner:

The basic rate of pay for one day is to be calculated according to the following formula or such other formula as may be approved by the Commissioner:

5. In this Schedule —

“average number of working days in a week” means —

(a)

for the purposes of calculating, under section 11(1), the salary that is payable in lieu of notice of termination —

(i)	the average number of days on which the employee was required, under his contract of service, to work in a week over the period of 3 weeks immediately preceding the termination of the contract; or
(ii)	where the employee was in employment for less than 3 weeks, the average number of days on which the employee would have been required to work in a week over the first 3 weeks of his employment, if the contract of service had not been terminated;

(b)

for the purposes of calculating, under section 28(2), the salary that may be deducted for absence from work —

(i)	the average number of days on which the employee was required, under his contract of service, to work in a week over the period of 3 weeks immediately preceding the day of absence or period of absence, as the case may be; or
(ii)	where the employee was in employment for less than 3 weeks, the average number of days on which the employee was required to work under his contract of service in a week over the period of 3 weeks immediately following the day of absence or period of absence, as the case may be;

(c)

in any other case —

(i)	the average number of days on which the employee was required, under his contract of service, to work in a week over the period of 3 weeks immediately preceding the rest day, holiday, day of leave or period of leave, as the case may be; or
(ii)	where the employee was in employment for less than 3 weeks, the average number of days on which the employee was required to work under his contract of service in a week over the period of 3 weeks immediately following the rest day, holiday, day of leave or period of leave, as the case may be;

“week” means a continuous period of 7 days commencing at midnight on Sunday.

6. Paragraphs (a) and (b) of the definition of “average number of working days in a week” in item 5 are not applicable in the third column.

7. In calculating the number of working days in a week or the average number of working days in a week, any day on which an employee is required to work for 5 hours or less under his contract of service shall be regarded as half a day.”.

Savings

43. Notwithstanding anything in this Act, where —

(a)	the terms of service under which a person is employed are provided for in a contract of service or collective agreement entered into before the commencement of this Act; and
(b)	that contract of service or collective agreement complies with the provisions of the Employment Act (Cap. 91) in force immediately before the commencement of this Act,

such terms of service shall, in so far as they are more favourable to the employee than the provisions of the Employment Act after the commencement of this Act, continue to apply unless the parties to the contract of service or the collective agreement, as the case may be, otherwise agree.

Related amendments to Industrial Relations Act

44. The Industrial Relations Act (Cap. 136) is amended —

(a)

by inserting, immediately after paragraph (d) of the definition of “employer” in section 2, the following paragraph:

“(e)	for the purposes of Parts IV, V and VI, the transferor of an undertaking whose employment of employees is transferred by virtue of section 18A of the Employment Act (Cap. 91);”.

(b)

by inserting, immediately after the words “terms of employment” in the fourth line of the definition of “industrial matters” in section 2, the words “, the transfer of employment”;

(c)

by deleting the full-stop at the end of the definition of “trade union” in section 2 and substituting a semi-colon, and by inserting immediately thereafter the following definitions:

“ “transfer of employment” means the transfer of an employee’s employment from the transferor of an undertaking to the transferee pursuant to section 18A of the Employment Act (Cap. 91);

“transferee” means the person to whom an undertaking is transferred and who becomes the employer of the transferor’s employees by virtue of section 18A of the Employment Act;

“undertaking” includes any trade or business.”;

(d)

by inserting, immediately after subsection (5) of section 16, the following subsection:

“(6) Subsection (1) shall not apply to the extent that a trade union of employees is deemed to be recognised by a transferee under section 18A(8) of the Employment Act (Cap. 91).”;

(e)

by deleting paragraph (b\) of section 26 and substituting the following paragraph:

“(b)	any successor to, or any transferee, assignee or transmittee of, the undertaking of an employer bound by an agreement, including any corporation which has acquired or taken over the undertaking of such an employer;”;

(f)

by deleting the words “section 48(6) or 49 (3)” in section 31(b) and substituting the words “section 50(1)”;

(g)

by inserting, immediately after paragraph (b) of section 31, the following paragraph:

“(ba)

a trade union which or an employer who is a party to a trade dispute as to any matter arising from or connected with a transfer of employment makes a request in writing, whether before or after the transfer of employment, to the Registrar that the trade dispute be submitted to arbitration;”;

(h)

by deleting the words “section 50” in section 34(1)(b) and substituting the words “section 49”;

(i)

by inserting, immediately after section 35, the following section:

“Award relating to trade dispute over transfer of employment

35A. Where the Court has cognizance of a trade dispute between a trade union and an employer arising from or connected with a transfer of employment, the Court’s power to make an award relating to the dispute under section 35 shall include the powers —

(a)	to delay or prohibit the transfer of employment of an employee who is a member of the trade union; and
(b)	to order that the transfer of employment of the employee who is a member of the trade union be subject to such terms as the Court considers just.”;

(j)

by deleting paragraph (d) of section 39(1) and substituting the following paragraph:

“(d)	any successor to, or any transferee, assignee or transmittee of, the undertaking of an employer who was a party to the trade dispute or of an employer bound by the award, including any corporation which has acquired or taken over the undertaking of such an employer;”;

(k)

by deleting the words “a business” in the second and in the third lines of section 39(2) and substituting in each case the words “an undertaking”; and

(l)

by deleting the word “business” in the penultimate line of section 39(2) and substituting the word “undertaking”.

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