Singapore

The Employment Law Review

Law Business Research

Editor

Erika C Collins

Th

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LawBusinessResearch

The employmenT law Review

Reproduced with permission from Law Business Research.

This article was first published in The Employment Law Review, (published in March 2009 – editor Erika C Collins).

For further information please email [email protected]

The Employment

Law Review

Editor

eRika C Collins

law Business ReseaRCh lTd

PubLiShERGideon Roberton

buSinESS dEvELoPMEnT MAnAGERAdam Sargent

MARkETinG ASSiSTAnTHannah Thwaites

EdiToRiAL ASSiSTAnTnick drummond-Roe

PRoduCTion EdiToRJonathan Cowie

SubEdiToRSJonathan Allen

kathryn SmulandCharlotte Stretch

EdiToR-in-ChiEFCallum Campbell

MAnAGinG diRECToRRichard davey

Published in the united kingdom by Law business Research Ltd, London

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Although the information provided is accurate as of March 2010, be advised that this is a developing area.

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ConTEnTS

Editor’s Preface ............................................................................................................. 1

Erika C Collins

Chapter 1 ARGEnTinA..............................................................................................5

Enrique Stile and Javier Enrique Patrón

Chapter 2 AuSTRALiA .................................................................................. 16

Dianne Banks, Peter Feros, Kim McGuren, James Pomeroy, Sarah Gray

and Hanh Chau

Chapter 3 AuSTRiA ........................................................................................ 28

Jakob Widner

Chapter 4 bELGiuM ...................................................................................... 45

Chris Van Olmen

Chapter 5 bRAziL ........................................................................................... 59

Luis Antonio Ferraz Mendes and Mauricio Froes Guidi

Chapter 6 CAnAdA ........................................................................................ 67

Jeffery E Goodman and Christopher D Pigott

Chapter 7 ChinA ............................................................................................ 79

K Lesli Ligorner

Chapter 8 dEnMARk.................................................................................... 92

Marianne Granhøj

Contents

Chapter 9 FRAnCE .......................................................................................103

Jérémie Gicquel

Chapter 10 GERMAnY ..................................................................................118

Thomas Griebe

Chapter 11 GREECE ......................................................................................133

Effie Mitsopoulou, Nicholas Maheriotis, Ioanna Kyriazi and

Ioanna Argyraki

Chapter 12 honG konG ............................................................................146

Michael J Downey

Chapter 13 hunGARY ..................................................................................162

Dániel Gera and Nelly Prokec

Chapter 14 indiA ...........................................................................................176

Manishi Pathak and Sehba Kanwal

Chapter 15 iRELAnd ....................................................................................189

John Dunne

Chapter 16 iSRAEL .........................................................................................204

Mor Limanovich and Tal Keret

Chapter 17 iTALY ............................................................................................214

Raffaella Betti Berutto and Filippo Pucci

Chapter 18 JApAn ...........................................................................................226

Setsuko Ueno

Contents

Chapter 19 koREA .........................................................................................239

Young-Seok Ki and John Kim

Chapter 20 LATviA......................................................................................... 250

Sigita Kravale

Chapter 21 MExiCo .......................................................................................263

Oscar de la Vega and Monica Schiaffino

Chapter 22 nEThERLAndS ....................................................................... 275

Els de Wind and Aedzer Oreel

Chapter 23 noRWAY .....................................................................................294

Gro Forsdal Helvik

Chapter 24 PoLAnd ......................................................................................306

Roch Pałubicki and Sławomir Paruch

Chapter 25 PoRTuGAL ................................................................................319

Maria da Glória Leitão and Diogo Leote Nobre

Chapter 26 RuSSiA ..........................................................................................332

Irina Anyukhina

Chapter 27 SinGAPoRE ...............................................................................347

Daniel Lim and Min-tze Lean

Chapter 28 SouTh AFRiCA ........................................................................358

Susan Stelzner, Stuart Harrison, Bradley Conradie and Zahida Ebrahim

Chapter 29 SpAin ............................................................................................373

Juan Bonilla

Contents

Chapter 30 SWEdEn .....................................................................................387

Henric Diefke

Chapter 31 SWiTzERLAnd ........................................................................397

Ueli Sommer

Chapter 32 TAiWAn .......................................................................................408

T C Chiang

Chapter 33 TuRkEY ......................................................................................417

Serbülent Baykan and Handan Bektas

Chapter 34 uniTEd ARAb EMiRATES ...................................................426

Ibrahim Elsadig

Chapter 35 uniTEd kinGdoM ...............................................................436

Christopher Walter and Helena Laughrin

Chapter 36 uniTEd STATES ......................................................................449

Patrick Shea

Chapter 37 vEnEzuELA .............................................................................460

José Manuel Ortega P

Appendix 1 AbouT ThE AuThoRS .........................................................475

Appendix 2 ConTRibuTinG LAW FiRMS’ ConTACT dETAiLS .... 505

347

Chapter 27

singaporeDaniel Lim and Min-tze Lean*�

* DanielLimandMin-tzeLeanarebothdirectorsatstamfordLawCorporation.

I INTRODUCTION

Therelationshipbetweentheemployerandemployeeisregulatedlargelybycontract,andthepartiesaregenerallyfreetocontractastheychooseunderanemploymentcontract,subject to certain statutory requirements and limits as provided for principally in theemploymentact(‘theact’),thelatestamendmentstowhichcameintoeffecton1January2009.Theactappliestocertaincategoriesof employees(‘protectedemployees’)andwiththeexceptionof certainsalaryprotectionprovisions,excludes,amongothercategories,personsemployedinmanagerialorexecutivepositions.Managersandexecutivesearningabasicmonthlysalaryof s$2,500andbelowarenowgiventhesamesalaryprotectionundertheact.

Further,partiVof theact,whichprescribesminimumrequirementsregardingrestdays,hoursof workandovertime,publicholidays,annualleave,sickleave,retrenchmentbenefits, retirement benefits, the annual wage supplement and other variable payments, appliesonlytoworkmen(generally,personsemployedformanuallabour)withabasicmonthlysalaryof notmorethans$4,500andprotectedemployees(notbeingworkmen)withabasicmonthlysalaryof notmorethans$2,000.

employmentdisputesinsingaporemayberesolvedinthecivilcourts.aprotectedemployeehasthefurtheroptionof lodgingaclaimintheLabourCourt,whichispresidedoverbyassistantLabourCommissioners.Decisions aremade in the formof orders,which may be enforced in the subordinate Courts, while appeals against decisions intheLabourCourtmaybemadeintheHighCourt.nolegalrepresentationisallowedinLabourCourts.Tradedisputesinvolvingtradeunionsmay,afterattemptsatconciliationhavefailed,beresolvedinindustrialarbitrationcourts.

singapore’s statutes on employment law may be grouped into four generalcategories.First,minimumemploymentstandardsarestipulatedbytheact(mentionedsupra); secondly, there are rules ensuring the safety of workplaces and the right of

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employees to compensation for injuries incurred during the course of employment;1thirdly, requirements are laid down to regulate the entry and employment of foreignworkers;2andfourthly,legislationgoverningthecollectivebargainingprocess.3rulesandregulationspromulgatedundertherelevantactsof parliamentsupplementandgivedetailto specific aspects of the main legislation.

The Ministry of Manpower has general oversight over matters relating to theabove.TheMinistryof Manpowerhasaregulatoryenforcementdivisiontocarryoutinspectionsof workplaces and investigationsof breachesof the various employmentlaws.TheMinistryof Manpowermayalsolaunchinquiriesuponreceivinganyclaimsorcomplaintsfrommembersof thepublic.

II YEAR IN REVIEW

Historically,thesingaporeemploymentlawregimehasbeenveryfavourabletoemployers.However,thetrendinrecentyearshasbeentoenhanceemployeewelfareandsafetyandthedevelopmentsinthepastyearcontinuethistrend.

i Safety and health

TheWorkplacesafetyandHealthact(‘WsH’)wasrecentlyrevisedin2008andrequiresemployerstotakereasonablypracticablemeasurestoensureasafeworkenvironment,includingputtinginplacesafetymeasuresandsafeproceduresforworkplaceactivities.Coverageof regulatedpremisesundertheWsHisbeinggraduallyincreasedand,induecourse,isintendedtocoverallworkpremises.inlinewiththesestatedintentions,threenewregulationsundertheWsHweremadein2009.

Firstly,theWsH(explosivepoweredTools)regulations2009imposesdutiesonemployers to ensure that users of such explosive powered tools adopt specified practices, includingensuring that such tools and theirprojectilesmeet certainquality standards;thatprotectiveshieldsareusedtogetherwithsuchtools;andtheadoptionof othersafetymeasuresrelatingtotheuseof suchtools.

Secondly, the WSH (Confined Spaces) Regulations 2009 imposes duties on occupiers of workplaces and other responsible persons to ensure safe practices withregards to confined spaces (defined as any confined space in which gases, vapours or fumes are liable to be present leading to certain identified risks). These practices include ensuring adequate ventilation for confined spaces and the control of entry into such spaces.

Thirdly,theWsH(safety&HealthManagementsystemandauditing)regulations2009 consolidates regulatory requirements on safety and health management systemsin higher risk work environments, including construction and shipbuilding sites. Theregulationsrequiresuchoccupierstoimplementasafetyandhealthmanagementsystem.With respect to larger worksites and certain types of factories, there is an additional

1 TheWorkplaceHealthandsafetyactandtheWorkinjuryCompensationact.2 Theemploymentof ForeignManpoweracttheimmigrationact.3 TheTradeUnionsact,theindustrialrelationsactandtheTradeDisputesact.

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requirement that at specified frequencies to conduct an internal review of the safety andhealthmanagementsystemortoappointaworkplacesafetyandhealthauditortoconductanaudit.

ii Retirement and older employees

Theretirementageactprescribesaretirementageof 62.anyterminanemploymentcontractthatexcludesorlimitstheretirementage,orprecludesanemployeefromavailinghimself or herself of the benefits conferred by the statute is void. Any dismissal of anemployeebelowtheretirementageonthegroundof ageisprohibitedandattractscriminalpenalties.inviewof thegrowingnumberof olderemployeesinthesingaporeworkforce,measuresarebeingconsideredbytheauthoritiestoencouragesenioremployeestocontinueworking,forexamplebyreducingtherightof employerstoreducewagesof employeeswhohavereachedtheageof 60,andbyextendingtheretirementageto67years.Underproposedlegislationthatisslatedtotakeeffectin2012,employerswillberequiredtogiveadvancenoticetoupcomingretireesonwhetherre-hiring isavailable.Whereitisnotavailable,aone-off paymentwillbegiventoretireestoassistinlookingforanewjob.

iii Globalfinancialcrisisandgovernmentassistance

aswithmanyothercountries,thegovernmenthasintroducedstimulusmeasurestoboostsingapore’seconomy.oneof theinnovativemeasuresimplementedwastheJobsCreditscheme,whereemployersweregrantedcashpayoutsbasedontheirCentralprovidentFund (‘CpF’) contributions on behalf of their employees to encourage employers toretaintheiremployees.

another scheme was the skills programme for Upgrading and resiliencedevelopedbythesingaporeWorkforceDevelopmentagency,whichprovidedadditionalincentives(throughfundingsupportandsubsidies)toretainworkersbysendingthemfortrainingandskillsupgrading.Thiswasintendedtohelpcompaniessaveonemploymentcosts,bettermanagetheirexcessworkforceduringthedownturnandatthesametimeupgradetheirworkerstostrengthenbusinesscompetitivenessforanyeventualeconomicrecovery.

III SIGNIFICANT CASES

TheCourtof appealcaseof ChandranalSubbiahv.DockersMarinePteLtd[2009]sgCa58concernedastevedorewhowasdeployedbyhisemployertoworkonavessel(ship)ownedbyathirdpartywhenaladderdetachedandthestevedorefell,sustainingsevereheadinjuries.

The case is significant in the Court’s examination of the scope of the common lawandstatutorydutyimposedonemployerstotakereasonablestepstominimisethedangersfacedbytheiremployees,notonlyin‘workplaces’withintheircontrol,butalsoinanyplacewheretheiremployeescarryouttheirwork.Thiscasemaybeseenaspartof a recent legislative and judicial trend towards establishing a ‘safety first’ work culture imposinghigherstandardsonemployersinensuringasafeworkenvironment.

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The Court affirmed the common-law duty on employers to take reasonable measures toensurethesafetyof itsworkers.Thedutyisimposedonanemployerassoonastheemploymentrelationshipisestablished.TheCourtobservedthatchangesinattitudesandthesocialclimatetowardsensuringadequatesafetystandardsintheworkplaceshouldbetakenintoaccountwhenevaluatingtheemployer’sdutyof careinanyparticularsituation.onthebasisof thechangesinattitudesandsocialclimateobserved,theCourtproceededtodistinguisholderCommonwealthcaselawthatwaspresentedbeforeit.Consequently,unduerelianceshouldnotbeplacedonolderCommonwealthcaselawwhenevaluatingthescopeof thisduty.

The Court described the common-law duty imposed on employers as beingpersonal and non-delegable, and would continue to persist even if the employees inquestionweredeployedormadetoworkinpremisesnotbelongingtotheemployers.Thestandardof careinrelationtothisdutyimposedonemployersistobeacommonsenseandpracticalstandardframedbytheboundariesof reasonableness.

Significantly, the Court also stated that when determining the appropriate standard of care to be adopted, all relevant factors have to be taken into account. The CourtthenexaminedandconsideredtheWsHandevenrelevantindustrycodesof conductsuchastheMinistryof Manpower’sWorkplacesafetyandHealthadvisoryCommittee’sComplianceassistanceChecklist(the‘WsHaCChecklist’)evenwhenthesewerenotyetinforceatthetimeof theinjury.

TheCourtheldthatthecommonlawdutyimposedonemployersinthisregardrequires them not to expose their employees to unnecessary or avoidable risks at aworkplace, and to take reasonablecare inassessing the risks thatmightbepresent aswellastakereasonablemeanstomaketheworksaferfortheiremployees.inconnectionwiththis,theCourtheldthatallemployerswhoseemployeeswereinvolvedinworkthatmightgiverisetosafetyconcernsaregenerallyexpectedtoperformariskassessmentexercise including,wherepossible,aphysical inspectionof theworkplaceprior tothecommencementof workbytheemployees.

TheCourtexpresseditsdesirethatallstakeholdersaretohaveconscientiousandconsistentregardtoworkersafetygiventherobustexpressionof theuncompromisinglegalrequirementsimposedonallemployers.

IV BASICS OF ENTERING AN EMPLOYMENT RELATIONSHIP

i Employment relationship

Theactdoesnotapplytocertainexcludedemployees,suchasmanagersandexecutives.For persons excluded by the act, the applicable terms governing the employer’sobligationswillbebasedon thecommon lawand theemploymentcontract.There isnorequirementforemploymentcontractstobeinwriting.ascontractsmaybeformedorallyorevenbyimplicationundercommonlaw,it isrecommendedthatemploymentcontractsbeinwritingtoavoidanyuncertaintyastotheirexistenceandterms.Contractsmaybeamendedorvariedbytheparties’mutualconsentprovidedthatitissupportedby consideration.accordingly, any attempt tovary a contractunilaterally andwithoutconsiderationmaybeunenforceableandamounttoabreachof contract.

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ii Probationaryperiods

Theactdoesnotmakeanyreferencetoprobationaryperiods.However,undertheactemployeeswhoareemployedfor26weeksor lessareentitledtoonlyaminimumof oneday’snotice,whichineffectissimilartotherightthatemployersusuallyreserveforthemselvesduringprobationaryperiods.

iii Establishingapresence

aforeigncompanymaynothireemployeesinsingaporewithoutbeingregisteredeitheras a branch office or a representative office. Foreign companies may recruit employees throughanagencyorotherthirdpartypriortotheirregistrationinsingapore,butmustbe registered as a branch office or representative office before they can commence employmentof thepersonnel.Thatsaid,aforeigncompanymaysendanemployeefromitshome jurisdiction tocarryoutbusiness insingaporeonbehalf of thatentity.Theemployeemay,however,beconsideredtobea‘permanentestablishment’of theforeigncompanyforsingaporeincometaxpurposes,andthusrendertheforeigncompanyliabletopaysingaporeincometaxonincomesourcedinsingapore.

A foreign company that is not officially registered in Singapore may engage an independent contractor (e.g., a commission agent, broker or other independentintermediary) to act on its behalf in singapore. an independent contractor will notnormally be considered to be a permanent establishment of the foreign company,particularlywherethereisevidencethattheindependentcontractorcarriesonbusinessinitsownnameandhasanarm’s-lengthfeefromtheuseof itsservicesbytheforeigncompany.

in singapore, every employee who is singaporean or a permanent resident of singaporeandearnsasalaryof s$50amonthorgreaterisrequiredtomakecontributionsto the CpF. The CpF is a provident fund managed by the government to meet theretirement needs and medical expenses of singaporeans and permanent residents.Therateof contributionisdependentonthemonthlysalaryandageof theemployee.Themaximumrateof contributionis34.5percentof anemployee’ssalary(wheretheemployee’smonthlysalaryexceedss$1,500ors$18,000perannum),subjecttoamaximumof s$1,552.50.Thereisnocaponthecontributionamountinrespectof additionalwages(suchasbonuses).of the34.5percentmaximumcontributionrate,20percentistobecontributedbytheemployee(subjecttoamaximumcontributionof s$900)and14.5percentistobebornebytheemployee(subjecttoamaximumcontributionof s$652.50).

V RESTRICTIVE COVENANTS

Under singapore law, non-compete clauses are allowed if they are reasonable.reasonablenessisdeterminedbythecourtonacase-by-casebasis.Theclauseisexaminedfromthepointof viewof eachof thepartiesandalsofromthepublicpolicyperspectiveof promoting freecompetition.Fromtheemployer’sperspective, the restrictionmustbepersonalisedtotheindividualandbenomorerestrictivethanisnecessarytoprotectits interests. For example, if the concern is confidentiality, and there are already separate confidentiality protections, then additional non-compete provisions may be found to be unreasonable. From the employee’s perspective, the usual factors weighed are the

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duration, geographical scope and work-area of the restriction. Compensation for therestrictioncanbeafactorindeterminingreasonableness.

VI WAGES

Theactprescribesthemaximumnumberof workinghoursandthescaleof overtimepayforemployeesprotectedunderpartiVof theact(‘partiVprotectedemployees’).Therearenootherworkinghourrestrictionsandovertimepayrequirementsimposedonemploymentcontracts.

i Workingtime

Hoursof workemployeesprotectedbytheactmaynotberequiredundertheiremploymentcontractstoworkmorethaneighthoursadayor44hoursinaweek.Thelimitof eighthoursperday may be exceeded when an employee is not required to work more than five days a week.However,heorshemustnotberequiredtoworkformorethanninehoursperdayor44hoursinaweek.if thenumberof hoursworkedislessthan44hourseveryalternateweek,thelimitof 44hoursaweekmaybeexceededintheotherweek.Thismust,however,bestatedintheemploymentcontractandissubjecttoamaximumof 48hoursinoneweekor88hoursinanycontinuoustwo-weekperiod.

ashiftworkermayworkupto12hoursadayattheordinarywage,providedthattheaverageworkinghourseachweekdonotexceed44hoursoveracontinuousthree-weekperiod.anemployeeshallnotberequiredtoworkmorethansixconsecutivehourswithoutabreakunlessthenatureof workissuchthatitmustbecarriedoncontinuously,inwhichcasetheemployeemayberequiredtoworkforeighthourscontinuously,thoughinsuchaninstanceabreakorbreaksof nolessthan45minutesinaggregatemustbegivensothattheemployeecanhavemeals.

an employee is entitled to a rest day comprising one whole day (midnight tomidnight)everyweek.if theemployee’srestdayfallsonanydayotherthanasunday,theemployerisrequiredtoprepareamonthlyrosterandinformtheemployeeof hisorherrestdaysforthemonthatthebeginningof eachmonth.

ii Overtime

all work performed by an employee protected by the act in excess of the above-mentionedhoursof work isconsideredasovertimework,andtheemployeemustbepaidnolessthan1.5timeshisorherhourlybasicrateof pay.paymentforovertimeworkmustbemadewithin14daysafterthelastdayof thesalaryperiod.Theemployeemayworkupto72hoursof overtimeinamonth.Thislimit,however,maybeexceededif theemployerhasappliedforandtheMinistryof Manpowerhasgrantedanexemption.

VII FOREIGN WORKERS

employers are required to keep a register of foreign employees showing their name,address, thebasicrateof payandallowances, theamountearned,andtheamountof deductionsmadefromtheearningsof eachforeignemployee.all legislationaffecting

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localworkerswillapplyequallytoforeignworkers.inaddition,employersmustensurethat foreignemployeesmustbe inpossessionof avalidworkpass for theperiodof employmentandtakeresponsibilityforcertainmatters.Thegrantingof workpassesissubjecttoconditionsthatmaybeimposedbytheControllerof Workpasses.

i Workpasses

Foreignworkersmayworkinsingaporeunderavarietyof differentpasses,dependingontheir level of qualifications and skills. Foreigners with recognised qualifications and who earnmorethans$2,500amonthmaycomeinonanemploymentpass,whilemid-levelskilledworkersmayworkinsingaporeonans-pass if theyhaveadegreeordiplomalevel qualifications (such as technicians) and earn at least S$1,800 a month (for most cases). Qualification for the S-Pass is determined on a points-based system, with relevant factorssuchasworkexperienceandjobtypebeingconsidered.Unskilledworkers(suchasconstructionworkers)mayworkinsingaporeonaWorkpermit.

ii Quotas

Quotasareimposedonthenumberof s-passandWorkpermitholdersthatanemployermayhire,dependingonthesectorof theemployer’sbusiness.Forexample,Workpermitholdersmayformagreaterproportionof theemployer’sworkforceof anemployerintheconstructionsectorthananemployerintheservicessector.

iii Levy

Theforeignworkerlevyisapricingcontrolmechanismtoregulatethedemandforforeignworkersinsingapore.alevymustbepaidoneachforeignworkercominginonaWorkpermitors-pass.Fors-passworkers,thelevyiss$50amonth,whileforWorkpermitworkers,thelevyrangesfrombetweens$150ands$470amonthperworker,dependingonthesectorandthepercentageof theworkforceconstitutingforeignworkers.

iv Securitybond

allemployersof WorkpermitholderswhoarenotMalaysiannationalsarerequiredtofurnishas$5,000securitybond.There isnosecuritybondrequirementapplicableforWorkpermitholderswhoareMalaysiannationals.From1January2010,newconditionswillbeattachedtothesecuritybond,includinghavingtopayforeignworkerspromptlyandhavingtomakereasonableeffortstolocateabscondedworkers.

v Medical

employershave tobear the costsof anymedical examinations forWorkpermit ands-pass holders as required by the Controller of Work passes and other medical andhospitalisationexpenses.From1January2010,employersmustprovidemedicalinsurancecoverage for such workers of S$15,000 (the previous figure was S$5,000).

vi Other

employersof Workpermitholdersalsohavetobearthecostsinrelationtotheupkeep,maintenanceandeventualrepatriationof theforeignworker.allworkpassholders(or

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inthecaseof Workpermits,theiremployer)arerequiredtoprovideupdatedresidentialaddresses within five days of commencement of employment and subsequently any changeinaddress.

VIII GLOBAL POLICIES

Theemployer–employeerelationshipisgovernedmainlybycontract.Whereemployersintendforanemployeehandbooktogovernemployees’conduct,careshouldbetakento ensure that the employment contract makes specific mention that the terms of the handbookaretoformpartof thetermsof employment.intheCourtof appealcaseof IntergraphSystemsSouthEastAsiaPteLtdv.ZhangYiguang,4itwasheldthattheprovisionsof anemployee’shandbookwerenotincorporatedintoanemployee’scontractmerelybyplacementof anemployee’shandbookonthecompany’sintranet.apartfromtheminimumstatutoryrequirementslaiddownintheemploymentact,therearenomandatoryrulesthatareimpliedintoorthatmustbeincludedintheemploymentcontract.

IX EMPLOYEE REPRESENTATION

employeesmayformtradeunionstorepresenttheircollectiveinterestsundertheTradeUnions act. Where a trade union’s membership comprises employees who do notoccupymanagerialorexecutivepositions,thetradeunionmaynotrepresentemployeesinmanagerialorexecutivepositions(whomayformtheirownseparatetradeunion).alltradeunionsmustberegisteredwiththeregistrarof TradeUnions.if atradeunion’sregistration is refused or cancelled, it immediately loses the rights, immunities andprivilegesgrantedtotradeunions,andwillbedeemedtobeanunlawfulassociation.

The registrar of Trade Unions may conduct inspections of the trade union’sbooks,accounts,recordsanddocuments.

i Rules of a trade union

TheTradeUnionsactrequirescertainmatterstobeprovidedforundertherulesof eachtradeunion.Theseinclude:a theobjectsforwhichthetradeunionistobeestablished,thepurposesforwhich

the fundsshallbeapplicable, theconditionsunderwhichanymember thereof may become entitled to any benefit, and the fines and forfeitures to be imposed onmembers;

b thecustodyandinvestmentof thefundsof thetradeunionandtheannualorperiodicauditof itsaccounts;

c theinspectionof thebooksandnamesof membersof thetradeunionbyanypersonhavinganinterestinthefundsof thetradeunion;and

d the taking of all decisions in respect of the election of officers, the amendment of rules,strikes,dissolutionandanyothermatteraffectingthemembersof thetradeuniongenerally,bysecretballot.

4 IntergraphSystemsSouthEastAsiaPteLtdv.ZhangYiguang[2005]1sLr255.

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apartfromthematters listed inthescheduleappendedtotheTradeUnionsact, thetradeunion is free to implement its own internal policies andprocedures, so long astheykeepwithinthelegislativeframeworkof theTradeUnionsactandtheindustrialrelationsact.

ii Rights and liabilities of a trade union

A trade union can sue and be sued in its own name. A trade union and its officers will also have immunity against certain legal proceedings instituted against them (e.g., forinducementof breachof contract)if theproceedingsresultfromtheiractionstakenincontemplationorfurtheranceof atradedispute.atradeunionalsohasimmunityagainsttortiousclaimsingeneral.ordinarycontractualrulesapplytocontractsenteredintobythetradeunion.

iii Representativesof thetradeunion

Officers and other duly appointed representatives of a trade union have the right and theauthoritytobargaincollectivelyforandtobindallthemembersof thetradeunionby a collective agreement without the need for ratification by the members. There are no statutoryrulesrelatingtothenumberof representativesthatatradeunionmusthave,their term of office or the frequency and procedure of a trade union’s meetings.

iv Strikesandindustrialaction

A trade union must not commence, promote, organise or finance any strike or any form of industrialactionaffectingthewholeoranysectionof itsmemberswithoutobtainingtheconsent,bysecretballot,of themajorityof thetradeunionmemberssoaffected.

v IndustrialRelationsAct

Theindustrialrelationsact(‘theira’)governsthecollectivebargainingprocess,aswellasthedisputeresolutionprocessfordisputesbetweenatradeunionandanemployer.Disputesbetweenatradeunionandtheemployermustnotberesolvedbyconciliationorarbitrationoutsidetheframeworkof theira.

atradeunionmayservenoticeonanemployer,orviceversaundertheira,settingoutproposalsforacollectiveagreementinrelationtoanyindustrialmattersandinvitingtheemployerortradeunion(asthecasemaybe)toenternegotiationswithaviewtoarriving at a collective agreement. if no reply ismadeby the recipientof thenotice,theCommissionerforLabourandtheMinistermayinterveneandpersuadethepartiesto negotiate or even subject them to compulsory conferences. Where all attempts atconciliationhavefailed,thepartiesmaythenrefertheircasetotheindustrialarbitrationcourts. An award made by an industrial arbitration court is final and conclusive and is not opentoappeal.notably,exceptforaminorstrikein1985,singaporehasbeenstrike-freesince1978.

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X DATA PROTECTION

i Requirements for registration

Thereisnodataprotectionlawapplicablegenerallyinsingapore,andassuch,thereisnodataprotectionagency.nevertheless,thepersonaldataof employeesmaybeprotectedby the law of confidence. Accordingly, employee consent is prudent with respect to commercialuseordisclosuretothirdpartiesof employeedata,failingwhichtheemployermay be in breach of confidence.

ii Sensitivedata

In view of the protection afforded by the law of confidence, employers should treat all employee-identifiable data, including financial and medical information, as confidential. Thereare,however,norestrictionsontheinternalprocessingof suchdata.

iii Backgroundchecks

Therearenorestrictionsonconductingbackgroundchecks insingapore.ex-convictsare issuedwithcolour-coded identitycardsandassuchtheirstatuswillbeobvioustoemployers.

XI DISCONTINUING EMPLOYMENT

i Dismissal

Theterminationof contractsisusuallyeffectedbygivingnotice.Underthecommonlaw,intheabsenceof anyexpresscontractualterm,areasonablenoticeperiodwillbeimplied.inrespectof employeescoveredundertheact,if theemploymentcontractalreadysetsouttherelevantnoticeperiodtobegiven,thatnoticeperiodwillapply.otherwise,thefollowingnoticeperiodswillapply:

Length of service Notice periodLessthan26weeks 1day26weekstolessthan2years 1week2yearstolessthan5years 2weeks5yearsandabove 4weeks

Wheretherearedisputes,thecivilcourtswillhavejurisdictionindecidingtheoutcome.

ii Paymentof salaryinlieuof notice

Undertheactandunderthecommonlaw,afterwrittennoticehasbeengiven,eitherpartymay terminate theemploymentcontractwithoutwaiting for the requirednoticeperiodtoexpirebypayingtotheotherpartyasumequaltotheamountof salarythatwouldhavebeenearnedbytheemployeeduringtherequiredperiodof notice.iii Summary dismissal

Undercommonlaw,if theemployeeisguiltyof misconduct,theemployerisentitledtosummarilydismiss theemployee inquestionwithoutnotice.Foranemployeecoveredby theact,anemployermayafterdue inquirydismisshimorheronthegroundsof

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misconductinconsistentwithorwilfulbreachof theexpressorimpliedconditionsof hisorherservice.Whereanemployeecoveredundertheactfeelsthatheorshehasbeenunjustlydismissed,theemployeeisentitledtomakerepresentationstotheMinister,whomayorderaninquiryintothedismissalandreinstatetheemployeeorpaytheemployeeacompensatorysum.

iv Femaleemployees

Dismissalof afemaleemployeewhoisonmaternityleavewithoutjustcauseisprohibitedandconstitutesacriminaloffence.inthecaseof apregnantemployeewhoisnotalreadyon maternity leave, if a notice of termination or dismissal is given without sufficient cause withinsixmonthsof thedateof delivery,orretrenchmentismadewithinthreemonthsof thedateof delivery,theemployeeisentitledtomaternityleavepay.

v Mutualsettlement

Thepartiesaregenerallyfreetoenterintoamutuallyagreeablesettlementwithrespecttotheterminationof anemployment.

vi Retrenchment

UnderpartiVof theact,anemployeewhohasbeenemployedforatleastthreeyearscan request retrenchment benefits from his or her employer if he or she is retrenched. The courts have held, however, that this should not be interpreted to mean that theemployer is under a legal obligation to provide retrenchment benefits. A guideline released bytheMinistryof Manpoweron19november2008recommendedaratebetweenhalf amonthandonemonth’swagesasaretrenchmentpaymentforeachyearof serviceof anemployee.

XII OUTLOOK

astheglobaleconomicsituationbeginstostabilise,thestimuluspackagesthathavebeenimplemented will be scaled back, and employers may find themselves deprived of some of the benefits they enjoy now, which may result in some retrenchment and reorganisation of the localworkforce.Wecan,however,expect the implementationof other longer-termschemestoaidsingapore’seconomicrecovery.

apartfromparliament’sintentiontoextendtheWsHtocoverallworkpremises,employerscanexpectthatthegovernmentwillcontinuetoencourageimprovementstotheworkplaceenvironmenttoattracthigherqualitytalenttosingapore.Thegovernmenthasstatedthatsuchenhancementswillneedtobebalancedwiththecosttoandburdenonbusinessesandwillcalibrateitsmeasuresaccordingly.

Theneedsof anageingworkforcecontinuetobeaconcern,andthesingaporegovernmentisexpectedtomanagethisissueproactively,asithashistoricallydone.anotherrelatedareathatthegovernmentislikelytofocusonwillbeintheareaof itssizeableforeignlabourforce.Foreignemployeesinsingaporerangefromlow-wagemeniallabourtotechnicians,professionalsandheadsof industry.atopicalissueisbalancingtheneedtokeepsingaporeattractivetoforeigntalentwiththeneedtomeettheaspirationsof itscitizens.

About the Authors

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Daniel lim

Stamford Law Corporation

Daniel Lim is an advocate and solicitor of the Supreme Court of Singapore and a registered patent agent. He is a member of the Examination Committee for the Singapore Patent Agents Qualifying Examination. He has served as vice chairman of the Intellectual Property Committee of the Inter-Pacific Bar Association from 2001 to 2006 and 2008 to date. Daniel is co-author of the LexisNexis Butterworth’s book Intellectual Property. He has been a guest lecturer on the topic of licensing for the graduate certificate in intellectual property law run by the IP Academy since 2001. He has also spoken widely at international conferences and local seminars. He has been listed as a leading lawyer practising in information technology and telecommunications consistently through the years in a diverse range of publications such as Asia-Pacific Legal 500, AsiaLaw Leading Lawyers, Practical Law Company’s Which Lawyer?, Who’s Who Legal and Global Counsel 3000. Daniel is an experienced litigator and the cases he has been involved in cover employment matters, trade secrets, trade libel, patents, trade marks, copyright and trust. The litigation experience is translated into practical advice and solutions in Daniel’s transactional and documentation practice.

min-tze lean

Stamford Law Corporation

Min-tze Lean is a director in the employment law practice group of the Firm and has advised both local and international clients on a wide range of matters, from structuring employment terms for senior-level management to dealing with employment issues in the context of post-acquisition integrations and restructurings. Min-tze has acted in some of the largest and most complex merger and acquisition transactions in Singapore and South-East Asia and a number of these transactions have won legal awards.

Min-tze is recognised for his technical legal knowledge and principled-approach to structuring solutions to complex legal issues. He has also spoken at various conferences organised by Euromoney and LexisNexis.

StamFORD laW CORPORatiOn

9 Raffles Place#32-00 Republic Plaza Singapore 048619Tel: +65 6389 3000Fax: +65 6389 [email protected] www.stamfordlaw.com.sg