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Singapore - Compensation & Benefit Legislation

CAPITAL

Singapore

 

CLIMATE

Tropical climate; hot, humid, rainy. Singapore has two distinct monsoon seasons - Northeastern monsoon from December to March and Southwestern monsoon from June to September - inter-monsoon - frequent afternoon and early evening thunderstorms.

 

LANGUAGES

Chinese (official), Malay (official and national), Tamil (official), English (official).

 

LEGAL SYSTEM

Singapore’s legal system is based on English common law. Singapore has not accepted compulsory ICJ jurisdiction.

 

CURRENCY

Singapore Dollar (1 USD = 1.83670 SGD as of April 15, 2002).

 

SINGAPORE - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

SINGAPORE - EMBASSY/CONSULATES

U.S. Embassy at Singapore

27 Napier Road

Singapore 258508

Telephone: (65) 6476-9100

Fax: (65) 6476-9232

 

Embassy of the Republic of Singapore at Washington D.C.

3501 International Place N.W.

Washington D.C. 20008

Telephone: (202) 537-3100

Fax: (202) 537-0876

http://www.mfa.gov.sg/washington/

 

SINGAPORE - HOLIDAYS

 

SINGAPORE – LEAVE

Annual Leave: Up to 14 days paid annual leave each year.

 

Maternity Leave: Eight weeks – 100% of pay (paid by employer).

 

SINGAPORE - MINIMUM AGE

The Government enforces the Employment Act, which prohibits the employment of children under the age of 12. Restrictions on the employment of children between the ages of 12 and 16 are rigorous and enforced fully. Children under the age of 14 are prohibited from employment in any industrial undertakings.

 

Exceptions include family enterprises; children may work in an industrial undertaking in which only members of the same family are employed. A child who is 12 years old or older may be engaged in "light work suited to his capacity." A medical officer must certify suitability for such light work. Employers must notify the Commissioner of Labor within 30 days of hiring a child between the ages of 14 and 16 and must attach medical certification of fitness for employment.

 

(Section 6.d. Acceptable Conditions of Work, Singapore – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

SINGAPORE - MINIMUM REMUNERATION

There are no laws or regulations on minimum wages or unemployment compensation.

 

However, the National Wages Council, a tripartite body consisting of government, labor, and business, monitors the economy and makes annual recommendations to the Government concerning wage guidelines. The labor market offers good working conditions and relatively high wages, which provide a decent standard of living for a worker and family.

 

(Section 6.e. Acceptable Conditions of Work, Singapore – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

SINGAPORE - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

SINGAPORE - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

The Constitution provides all citizens with the right to form associations, including trade unions; however, Parliament may impose restrictions based on security, public order, or morality grounds. The right of association is delimited by the Societies Act and by labor and education laws and regulations. Under these laws, any group consisting of 10 or more persons is required to register with the Government. The Trade Unions Act authorizes the formation of unions with broad rights, albeit with some narrow restrictions, such as prohibitions on the unionization of uniformed employees. According to government statistics, the national labor force is made up of approximately 2.2 million workers, approximately 350,000 of whom are represented by 72 unions. Almost all of the unions (which represent virtually all of the union members) are affiliated with the National Trades Union Congress (NTUC), an umbrella organization that has a close relationship with the Government.

 

The NTUC unabashedly acknowledges that its interests are closely linked with those of the ruling PAP, a relationship often described by both as "symbiotic." The NTUC secretary general (SG), Lim Boon Heng, a PAP M.P., is a member of the Cabinet as Minister in the Prime Minister's Office. It is common for young PAP M.P.'s to be given leadership positions in the NTUC or a member union. NTUC policy prohibits union members who actively support opposition parties from holding office in affiliated unions. While the NTUC is financially independent of the PAP, with income generated by NTUC-owned businesses, the NTUC and the PAP share the same ideology and work closely with management in support of nonconfrontational labor relations.

 

Workers, other than those in essential services, have the legal right to strike but rarely do so. There are no specific laws that prohibit retaliation against strikers. The law provides that, in order to strike, unionized workers must first obtain a majority vote in favor of the strike by secret ballot. No strikes have occurred since 1986. Most disagreements are resolved through informal consultations with the Ministry of Manpower. If conciliation fails, the disputing parties usually submit their case to the Industrial Arbitration Court, which has representatives from labor, management, and the Government. Besides these labor dispute mechanisms and the close working relationship and shared views among labor, management, and the Government, the maintenance of labor peace has been a product of high economic growth rates, regular wage increases, and a high degree of job mobility in a virtual full-employment economy. In addition the widely held view that labor conflict would undermine the country's economic competitiveness and attractiveness to investors, and a cultural aversion to confrontation help to maintain a harmonious labor situation.

 

The NTUC is free to associate regionally and internationally.

 

b. The Right to Organize and Bargain Collectively

 

Collective bargaining is a normal part of labor-management relations in the industrial sector. Agreements between management and labor are renewed every 2 to 3 years, although wage increases are negotiated annually. Yearly guidelines on raises and bonus pay issued by the National Wages Council (NWC), a group composed of labor, management, and government representatives, serve as the starting point for bargaining agreements. In 1999 in response to the economic downturn, the Government adopted an NWC proposal in which, subject to negotiation in each enterprise, up to 10 percent of salaries would be considered "variable" each month, allowing companies to eliminate that portion of pay if financial problems necessitated it.

 

There are no export processing zones.

 

c. Prohibition of Forced or Compulsory Labor

 

The Government prohibits forced or compulsory labor, including forced and bonded labor by children, and generally enforces this provision effectively. Under sections of the Destitute Persons Act, any indigent person may be required to reside in a welfare home and engage in suitable work. The International Labor Organization (ILO) has criticized the coercive terms of this act, which includes penal sanctions, as not in compliance with the ILO Convention on Forced Labor. The Government maintains that the act is social legislation that provides for the shelter, care, and protection of destitute persons, and that work programs are designed to reintegrate individuals into society.

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

The Government enforces the Employment Act, which prohibits the employment of children under the age of 12. Restrictions on the employment of children between the ages of 12 and 16 are rigorous and enforced fully. Children under the age of 14 are prohibited from employment in any industrial undertakings. Exceptions include family enterprises; children may work in an industrial undertaking in which only members of the same family are employed. A child who is 12 years old or older may be engaged in "light work suited to his capacity." A medical officer must certify suitability for such light work. Employers must notify the Commissioner of Labor within 30 days of hiring a child between the ages of 14 and 16 and must attach medical certification of fitness for employment. The incidence of children taking up permanent employment is low, and abuses are almost nonexistent. The Government prohibits forced and bonded labor by children, and such practices are not known to occur.

 

Ministry of Manpower regulations prohibit night employment of children and restrict industrial work for children between the ages of 14 and 16 to no more than 7 hours a day, including the hours spent in school. Children may not work on commercial vessels, with any machinery in motion, on live electrical apparatus lacking effective insulation, or in any underground job. The Minister of Manpower effectively enforces these laws and regulations.

 

The Government ratified ILO Convention 182 on the worst forms of child labor in June.

 

e. Acceptable Conditions of Work

 

There are no laws or regulations on minimum wages or unemployment compensation. However, the National Wages Council, a tripartite body consisting of government, labor, and business, monitors the economy and makes annual recommendations to the Government concerning wage guidelines. The labor market offers good working conditions and relatively high wages, which provide a decent standard of living for a worker and family.

 

The Employment Act sets the standard legal workweek at 44 hours and provides for 1 rest day each week.

 

The Ministry of Manpower effectively enforces laws and regulations establishing working conditions and comprehensive occupational safety and health laws. Enforcement procedures, coupled with the promotion of educational and training programs, have been implemented to reduce the frequency of job-related accidents. While a worker has the right under the Employment Act to remove himself from a dangerous work situation, his right to continued employment depends upon an investigation of the circumstances by the Ministry of Manpower.

 

Because of a domestic labor shortage, approximately 600,000 foreign workers are employed legally, constituting about 30 percent of the total work force. There are no reliable estimates of the number of foreigners working illegally. Most foreign workers are unskilled laborers and household servants from other Asian countries. Foreign workers face no legal wage discrimination. However, they are concentrated in low-wage, low-skill jobs and often are required to work long hours. Most foreign construction workers live on-site in substandard conditions. Although the great majority of the more than 100,000 maids (mainly from the Philippines, Indonesia, and Sri Lanka) work under clearly outlined contracts, their low wages, their dependence on their employers for food and lodging, and the fact that they often live and work relatively isolated from the rest of society make them vulnerable to mistreatment and abuse. A 1998 amendment to the Penal Code, in response to a reported increase in cases of maid abuse, increased the punishment for confining or sexually or physically abusing a maid. The authorities have fined or imprisoned employers who have abused domestics, often with great publicity. Substantiated cases of abuse of foreign domestics fell by almost half following the amendment, from 157 cases in 1997 to 89 in 1998. In 2000 there were 87 cases, and there were 49 cases from January to July.

 

Most maids work 6 days per week from very early morning until late in the evening. Many contracts allow only 1 day off per month. Contracts often stipulate that, even when she is ostensibly not working, a maid must remain on the premises except for official duties or on her day off. According to Ministry of Manpower Statistics, wages average approximately $250 (SD456) per month (not including free room and board). Maids often must put aside most or all of their wages for the first several months of employment to reimburse their placement agents. Work permits for low-wage workers stipulate the cancellation of such permits if workers apply to marry or marry a citizen or permanent resident.

 

Many lower paid foreign workers not covered under the Employment Act are ineligible for the limited free legal assistance that is available to citizens. However, the Ministry of Manpower also offers mediation services for all employees, foreign or local. The Government allows complainants to seek legal redress.

 

f. Trafficking in Persons

 

The law prohibits trafficking in persons; however trafficking in persons is a problem. The country is a destination for trafficking in women for the purpose of prostitution, primarily from India but also from Thailand, China, Sri Lanka, Indonesia, Burma, Malaysia, and Colombia. Almost all foreign prostitutes reportedly are aware when they enter the country that they will be employed as prostitutes. However, some may have their passports held by employers after their arrival, or are subject to other coercive circumstances. In other cases, recruiters in source countries offer women jobs as maids, bar hostesses or waitresses, and sometimes offer up-front payment as inducement. Once in the country, these women are forced to work as prostitutes, and are subject to threats and violence if they resist. Employers may confiscate their passports, limiting opportunities to leave. Police reportedly conduct raids approximately once per month in an effort to maintain some control over the situation. While prostitution is legal, public solicitation is not, and police periodically carry out crackdowns on prostitutes, particularly those operating outside of informally designated red light areas. Foreign prostitutes, including trafficked victims, detained in these raids usually quickly are deported. Foreign prostitutes also are deported immediately if they test positive for HIV/AIDS or other sexually transmitted diseases.

 

SINGAPORE - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

SINGAPORE - STANDARD WORKWEEK

The Employment Act sets the standard legal workweek at 44 hours and provides for 1 rest day each week.

 

(Section 6.e. Acceptable Conditions of Work, Singapore – Report of Human Rights Practices, 2001, U.S. Department of State.)