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

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Amendments to Employment Act Enacted Expanding Coverage

New Legislation Enacted

Authors: Benjamin Gaw & Elizabeth Tong, Directors – Drew & Napier LLC

Parliament has approved proposed amendments to the Employment Act (EA), which took effect on April 1, 2019. The EA extends its coverage to managers and executives earning more than S$4,500 per month, thus expanding its coverage to include about 430,000 managers and executives. Additionally, the current salary cap and overtime salary cap for nonworkmen is increased. Further, the Employment Claims Tribunals will now hear both salary-related disputes and wrongful dismissal claims, instead of the latter being heard by the Ministry of Manpower.

District Court Clarifies Test for Independent Contractors

Precedential Decision by Judiciary or Regulatory Agency

Authors: Benjamin Gaw & Elizabeth Tong, Directors – Drew & Napier LLC

The District Courts of Singapore held that a gym instructor engaged by a country club was an employee, and not an independent contractor. Accordingly, the country club was penalized for failing to pay the gym instructor’s mandatory Central Provident Fund contributions. The Courts clarified that to determine if a person is an independent contractor or an employee, the test is whether the person is carrying on an independent business on his own account. As a multifaceted and fact-sensitive inquiry, the factors to consider include: the company’s degree of control over the person; whether the person enjoys any employment benefits from the company; whether the person took on any degree of financial risk or investment in the running of the enterprise; and whether the services were an integral part of the company’s business.

Amendments to Employment of Foreign Manpower (Work Passes) Regulations 2012

New Regulation or Official Guidance

Authors: Benjamin Gaw & Elizabeth Tong, Directors – Drew & Napier LLC

Amendments to the Employment of Foreign Manpower (Work Passes) Regulations 2012 came into force on January 1, 2019. The amended repatriation provisions clarify that in the event of the expiration, cancellation or revocation of the foreign employee’s work pass or in-principle approval for the same, the employer shall repatriate the foreign employee to the international port of entry within the foreign employee’s home country that affords reasonable access to the foreign employee’s hometown. In addition, the new Work Permit condition now prohibits employers of foreign domestic workers from preventing or restricting the access to or the use by these workers of any salary or moneys due to them.

Reduction in Foreign Worker Quota for the Services Sector

Proposed Bill or Initiative

Authors: Benjamin Gaw & Elizabeth Tong, Directors – Drew & Napier LLC

The Ministers for Finance and Manpower announced during the Budget Statement in March 2019 that the Dependency Ratio Ceiling (DRC) – which sets out the maximum permitted ratio of foreign workers to the total workforce that a company is allowed to hire – will be reduced for the services sector in two steps. The overall DRC in the services sector will be reduced from 40% to 38% on January 1, 2020, and then to 35% on January 1, 2021. The sub-DRC for mid-level skilled S-Pass holders in the services sector will be reduced from 15% to 13% on January 1, 2020, and then to 10% on January 1, 2021.

Proposed Amendments to the Work Injury Compensation Act

Proposed Bill or Initiative

Authors: Benjamin Gaw & Elizabeth Tong, Directors – Drew & Napier LLC

The Ministry of Manpower (MOM) is conducting a public consultation on proposed amendments to the Work Injury Compensation Act (WICA). MOM proposes to broaden the coverage of mandatory work injury compensation insurance and to expand the scope and limits of compensation. In addition, MOM proposes to expedite WICA claims by introducing several measures like auto-processing of WICA claims, allowing compensation based on current incapacities, and allowing MOM to determine basis of compensation to resolve disputes.