6 game-changers for PMEs in Singapore

Despite much media coverage this year on changes that affect PMEs at work, not everyone is aware of how these changes affect their labour rights and bargaining power at work.

Find out at a glance how these six game-changes will affect PMEs in Singapore.

1. Small Claims Employment Tribunal

This tribunal will benefit PMEs earning above S$4,500, who can currently only pursue breaches of employment through civil suits, which is expensive and time-consuming.

MOM is in consultation with unions to set up a Small Claims Employment Tribunal to help workers be able to lodge claims (with a certain claims limit) for statutory issues in the Employment Act (e.g. salary claims, commissions, bonuses or annual wage supplement payments).

2. Tripartite Mediation Framework

PMEs with executive and/or supervisory functions are currently eligible for tripartite mediation if they:

• earn a monthly basic salary of up to $4,500
• are an individual member of any registered trade union without any form of collective representation rights
• are employed in a non-unionised company

Tripartite mediation currently covers employment disputes involving:

• salary arrears
• payment of retrenchment benefits
• breach of individual contract by the employer (e.g. dispute about non-payment of commission)

Unions are in talks with MOM and employers to review the widening of the coverage of the Tripartite Mediation Framework to:

• cover more workers (except those with substantial managerial responsibilities), e.g. rank-and-file union members in non-unionised companies, PME union members who earn more than $4,500 a month
• expand the list of employment disputes e.g. re-employment

3. Second Skilling

Recently, NTUC Assistant Secretary-General Patrick Tay urged the government to give PMEs more support to cultivate a second skill by:

• having a greater focus on PMEs in the Workforce Skills Qualifications
• - giving individual PMEs greater accessiblity to the lifelong learning fund, with guidance by a career coach from a Continuing Education and Training Centre
• actively promoting second skilling and providing incentives for employers to allow their staff to pursue a second skill during thier working hours

Patrick Tay also turned the spotlight on employers, reminding them that "further increase in productivity with a tightened foreign manpower supply is only possible when their local employees are upgraded in their skills and abilities".

4. Industrial Relations Act changes

Currently rank and file unions can only represent PMEs on an individual basis.

However, unions have successfully lobbied MOM to review the Industrial Relations Act to allow rank and file unions to represent PMEs collectively, such as retrenchment, re-employment (for older workers) unfair dismissals and salary arrears.

With more unions being able to collectively represent PMEs in future, PMEs will have a higher collective bargaining power together with the union regarding workplace issues.

5. Employment Act changes

On top of salary protection, from 1 April 2014, PMEs earning a basic monthly salary of up to $4,500 are covered under the general provisions of the Employment Act, including sick leave benefits and protection against unfair dismissal.

From 1 April 2015, workers will be eligible for retrenchment benefits if they have worked for their employer for at least two years, down from three years currently.

6. Fair Consideration Framework

Employers are expected to comply with MOM's Tripartite Guidelines on Fair Employment Practices to have fair employment practices that are merit-based and non-discriminatory.

From 1 August 2014, companies submitting Employment Pass (EP) applications must advertise the job vacancies on the WDA National Jobs Bank. The job advertisements must:

• be open to Singaporeans
• comply with the Tripartite Guidelines on Fair Employment Practices
• run for or at least 14 calendar days

Employers who have been found to have nationality-based or other discriminatory HR practices will face additional scrutiny from MOM and have their work pass privileges curtailed.