Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

View all Q3 2020 Global Guide Quarterly updates   Download full Q3 2020 Global Guide Quarterly

Key Changes to Work Injury Compensation Act

New Regulation or Official Guidance

Author: Benjamin Gaw, Director – Drew & Napier LLC

From September 1, 2020, key changes to the Work Injury Compensation Act came into effect. As announced by the Ministry of Manpower (MOM), these include: (a) the requirement that employers must report any instances of leave arising from work injury, including light duties; (b) claims are considered made when the employer is notified of the accident; (c) compensations can be based on a multiple of basic monthly salary; (d) compensation can be based on current incapacity assessment; (e) employers are liable to compensate for shortfall in earnings when their employees are on light duties; (f) the MOM may allow for doctor-switching for current or permanent incapacity assessment; (g) greater recourse for employers to recover compensation paid out on basis of error or fraud; and (h) increased penalties for offences.

COVID-19: Reciprocal Green Lane and Periodic Commuting Arrangement Schemes

New Regulation or Official Guidance

Author: Benjamin Gaw, Director – Drew & Napier LLC

The Reciprocal Green Lane (RGL) and Periodic Commuting Arrangement (PCA) schemes have been implemented to address the needs of different groups of cross-border travelers between Malaysia and Singapore. The RGL enables short-term cross-border travel for essential business and official purposes between both countries, up to a maximum of 14 days’ stay. Travelers under the RGL scheme are expected to undergo pre-departure and post-arrival COVID-19 PCR tests, abide by a pre-declared controlled itinerary during their visit, and download and use TraceTogether for their entire period of stay.

The PCA allows Singapore and Malaysia residents, who hold valid work passes in the other country, to enter that country for work. Travelers to Singapore under the PCA scheme are expected to serve a Stay-Home Notice (SHN) and undergo a COVID-19 PCR test before the SHN period ends. After at least 90 days in their country of work, they may return to their home country for short-term home leave, and thereafter may re-enter their country of work to continue work for at least another 90 days.

Tightening of Work Pass Requirements

New Regulation or Official Guidance

Author: Benjamin Gaw, Director – Drew & Napier LLC

From September 1, 2020, the salary requirement for Employment Passes (EP) will be raised to $4,500 for all new applicants. The new salary criteria for EPs that take effect from September 1, 2020, will equally apply to the Financial Services sector. However, from December 1, 2020, the minimum qualifying salary for EPs in the Financial Services sector will be further raised to $5,000 for new applicants. The qualifying salaries for older and more experienced EP candidates in all sectors in their 40s will be raised correspondingly and will remain around double the minimum qualifying salary for the youngest applicants. For renewal applicants, these new salary criteria will come into effect on May 1, 2021.

The S Pass minimum qualifying salary will be raised to $2,500, with qualifying salaries for older and more experienced S Pass candidates revised accordingly. The changes to S Pass qualifying salaries will apply to new applicants as of October 1, 2020, and to renewal applicants as of May 1, 2021. In evaluating EP and S Pass applications, MOM will consider whether the employer has (i) kept up support of local professionals, managers, executives and technicians (PMET) in their employment and (ii) been responsive to government efforts to help them recruit and train more Singaporean PMETs. Conversely, they will also consider whether the employer has discriminated against qualified Singaporeans. Other measures concerning job advertising will be implemented.

Updates to Updated Advisory on Salary and Leave Arrangements

New Regulation or Official Guidance

Author: Benjamin Gaw, Director – Drew & Napier LLC

The updated advisory on salary and leave arrangements, which was issued on June 9, 2020, was updated again on July 17, 2020. The advisory was issued by the Tripartite Partners, comprising of the Ministry of Manpower (MOM), the National Trades Union Congress and Singapore National Employers Federation, and is intended to guide employers and employees on salary and leave arrangements post-Circuit Breaker.

Broadly, the advisory: (a) discusses the Jobs Support Scheme, which provides employers with support in relation to local employees, and details of the Foreign Worker Levy waiver and rebate, which provides employers with support in relation to local employees; (b) discusses the continuing notification requirements in relation to cost-saving measures involving salary reductions where certain thresholds are reached; and (c) provides recommendations on salary and leave arrangements, to both employers whose businesses are operating and employers who cannot yet resume operations, and in relation to both local and foreign employees. In particular, local and foreign employees who continue to work fully must be paid their prevailing salaries, including the employers’ contributions to the Central Provident Fund.