The Employment Act

1. Coverage of the Employment Act:

Applicability: The Act covers most employees working under a contract of service with an employer, including full-time, part-time, temporary, and contract employees. However, certain groups of employees, like managers and executives earning above a specific monthly salary, are excluded from some of its provisions.

2. Key Provisions of the Employment Act:

Contract of Service: Employers must issue a written contract or letter of appointment to employees, specifying key employment terms such as job scope, working hours, salary, and other benefits.

Payment of Salary: The Act stipulates the time frame and method of salary payment. Salaries must be paid at least once a month and within 7 days after the end of the salary period.

Working Hours, Rest Days, and Overtime: It specifies the standard working hours, entitlements for rest days, public holidays, and the rates for overtime work.

Annual Leave and Other Leaves: Employees are entitled to annual leave, sick leave, maternity leave, paternity leave, and child care leave, subject to certain conditions.

Employee Welfare and Protection: Provisions include guidelines on the treatment of employees, workplace safety, and conditions for termination of employment.

3. Record Keeping Requirements:

Employers must maintain detailed employment records for all employees, including work hours, salaries, and leave records.

4. Dispute Resolution:

The Act provides mechanisms for dispute resolution between employers and employees, primarily through the Ministry of Manpower (MOM).

5. Amendments and Updates:

The Employment Act is regularly reviewed and updated. Recent amendments have expanded coverage and enhanced employee rights.

6. Compliance and Enforcement:

Non-compliance with the Employment Act can lead to penalties, including fines and imprisonment. The MOM actively enforces the Act.