Changes from MOM (Key Employment Terms in Letter of Employment)

Employers will always want to make sure you are getting the right candidate for your role. You would want to ensure that your prospective employee expectations match with what you can provide, and that the prospective employee is signing up for the right job that he thinks it is.

To prevent confusion and conflicts, employers should provide Key Employment Terms (KET) in your letter of employment. This ensure that there is effective communication between the one preparing the letter, as well as the one signing on the employment letter. 

With effect from 01 April 2016, employers who do not have the key employment terms stated in the letter of employment will be subjected to an administrative penalty. The focus would be on educating employees in the first year. 

The things to include in the Key Employment Terms are:

  • Full name of employer.
  • Full name of employee
  • Job title, main duties and responsibilities.
  • Start date of employment.
  • Duration of employment (if employee is on fixed-term contract).
  • Working arrangements, such as:
    o    Daily working hours (e.g. 8.30am - 6pm).
    o    Number of working days per week (e.g. six).
    o    Rest day (e.g. Saturday).
  • Salary period.
  • Basic salary.
    o    For hourly, daily or piece-rated workers, the basic rate of pay indicated 
  • Fixed allowances.
  • Fixed deductions.
  • Overtime payment period (if different from item 7 salary period).
  • Overtime rate of pay.
  • Other salary-related components, such as:
    o    Bonuses
    o    Incentives
  • Type of leave, such as:
    o    Annual leave
    o    Outpatient sick leave
    o    Hospitalisation leave
    o    Maternity leave
    o    Childcare leave
  • Other medical benefits, such as:
    o    Insurance
    o    Medical benefits
    o    Dental benefits
  • Probation period.
  • Notice period.

With this in place, you can ensure that both parties have set the expectation right, and it will facilitate to resolve outstanding disagreements later, if necessary. 

Sample of KET copy can found on MOM page.

 

http://www.channelnewsasia.com/news/business/employers-must-issue/2652704.html
http://www.mom.gov.sg/employment-practices/employmen