Closing Contract Work Loopholes

Based on the Manpower Ministry’s 2015 Labour Force Report, contract workers form 11.3% of the resident workforce. With this alarming statistics, it is no surprise that new guidelines have been implemented on 20 June 2016. This aims to protect the interest of contract workers, to ensure a more equitable entitlement, especially since term contract employees are as valuable as permanent employees. 

The guidelines were established to provide clarity on leave benefits and notice period for term contract employees, whose contract will terminate upon the agreed last day of service, subject to renewal. 

Previously, term contract employees who have served more than 3 months continuously in their employment with their employers are entitled to benefits. However, employees who are on separate term contract shorter than 3 months of service, but are constantly renewed with a break in between the contract, will not be entitled to this benefits. 

It is now encouraged for employers to provide benefits based on the cumulative term of the contract. Recurrent contract renewals will be treated as continuous if they are renewed within a month of the previous contract. Term contract employees who usually have their contracts renewed on a recurrent basis should also be given sufficient notice, where it is defined as more than one day if the employee has been working for less than 26 weeks. This allows either party to make necessary arrangements. 

Reference: http://www.channelnewsasia.com/news/singapore/guidelines-released-on/2887122.html

Are the housing needs of your foreign employees met?

In labour-intensive industries, it is possible to overlook basic housing needs for your foreign employees. This issue is even more pressing for the foreign employees who earn a minimal wages to sustain their expenses in Singapore. 

It is the employer’s responsibility to ensure that foreign workers have acceptable housing, which is clearly defined by different government entities in Singapore. Employers are required to update the residential address within 5 calendar days or change of address.  The consequences of not being able to meet basic requirements can affect your future Work Permit applications and renewals. 

It’s really difficult to be able to ensure that foreign workers have acceptable living standards because employees move from one location to another. To prevent any implications, employers should:
 

1. Educate their employees on what is acceptable housing standards, and regularly check their accommodation and make necessary improvements
    
2. Encourage and facilitate information dissemination when foreign workers are finding another place to stay, or if there are any existing problems with their current accommodation
    
3. Carefully select dormitories to house foreign workers or ensure that the housing is approved under the different types of approved housing, subject to industry. 
    

Foreign workers who are Malaysians OR Non-Malaysians from Service or Manufacturing sectors can be housed in HDB flats. Effective from 1 January 2017, employers are to take note that Non-Malaysians from manufacturing sector are only allowed to rent individual room instead of an entire HDB flat.

Reference: http://www.mom.gov.sg/passes-and-permits/work-permit-for-foreign-worker/sector-specific-rules/housing-requirements

Changes from MOM (Re-employment)

One of the most recent changes to the employment act that has been implemented with effect from 1st July 2017, is the increase in retirement age from 65 to 67. This recent change has come a long way since 2014.

Since 2014, it has been recommended by the Tripartite Committee on Employability of Older Workers to increase the re-employment age. This was recommended to allow older workers to continuously contribute, and to support themselves in their old age.  The intention is that older workers come with them a wealth of experiences, skills and knowledge, which will be able to add value to Organizations. 

Interestingly enough, the legal provision which allows a wage cut to employees above 60 have also been eliminated. 

Before 1st July 2017, the Singapore Government will continuously support employers recognise the value of older employees. Organizations who voluntarily re-employ workers above 65 years old will be offered Special Employment Credit (SEC). The SEC allows employers to enjoy an additional offset of up to 3% of the employee’s salary. 

To help the older workers adapt, Organizations should implement plans and be flexible to the change in job scope or even redeployment for workers up to 65 years of old. These should be properly discussed and communicated to prevent future disputes. 

Companies should already have in place plans and work scope for workers up to 65. With this new implementation to go beyond 65, employers have to adapt flexibility to provide more employment options such as flexible-work arrangements, job modifications, re-deployment to other sectors. These should also be properly discussed with workers to prevent disputes

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

Changes from MOM (Strengthening the core of PMEs)

It has very well been established that for companies to apply for Employment Pass, companies with more than 25 headcounts should have posted their advertisement on Jobs Bank for at least 14 days to strengthen the Singaporean Core of PMEs. 

Effective from 01 October 2015, Companies should indicate a salary range on Jobs Bank. Companies who do not adhere to this practice are at risk of having their Employment Pass rejected. This will assist in ensuring transparency between Singaporean candidates and employers in the market, and will ensure proper communication. 

The Ministry of Manpower (MOM) will place emphasis on Employment Pass applications on firms who have a lesser Singaporeans who are under the Professional, Managers and Executives (PMEs) category in comparison to its industry players. To verify, MOM can require more information and statistics to ensure that Singaporeans were considered first.
Efforts have been established to ensure that Singaporean PMEs are constantly upgrading themselves to ensure they remain employable. Initiatives such as Workforce Development Agency (WDA) and (Employment and Employability Institute) e2i will roll out a Career Support Programme (CSP) have already been in the pipeline. Even when mature Singaporean PMEs have joined, efforts have been established to orientate them into the new environment where external and on the job training will be implemented.  

The Singapore government have also constantly recognised and encouraged employers to employ mature Singaporean PMEs. Organisations that hire mid-level Singaporean PMEs who have been looking for jobs for at least six months, and are being paid at least $4000 will be given wage support based on the following table. 

The Employment Claims Tribunal (ECT) was also established in the first quarter of 2016 for PMEs who earn more than $4500 and who are not covered by the Employment Act for conflict resolution pertaining to statutory and contractual salary. 

http://www.mom.gov.sg/newsroom/press-releases/2015/0708-enhanced-support-for-singaporean-pmes

Singapore Budget 2016: Foreign worker levy increase deferred in marine and process sectors

It has been announced during the Singapore Budget 2016 for the amendments to the Work Permit Holders Levy Schedule. 

It should be noted that all of the sectors have an increase in the Levy Rates except for the Marine, Process and Manufacturing Sectors. This reflects the government’s stance towards encouraging companies to hire more Singaporeans and to reduce their dependence on foreign labour. The decision to strengthen the “Singaporean Core” is still very much emphasized. 

It is more interesting to understand the reasons why foreign worker levy increment in Marine and Process Sectors are deferred. The reason that was provided is because of “reduction of Work Permit holders and this sector’s challenging business conditions” 

All employers should take note that the effective date of change of Levy Rates are on 1st July, 2016 and should account for this into their hiring practices. The Construction Sector should note that there is a further increase in the levy rates on 1st July, 2017. 

To encourage companies to retain experienced workers to enhance productivity in the Construction and Process Industries from the Non-traditional sources, the minimum experience requirement for man-year entitlements (MYE)-waiver workers will be increased from two to three years, effectively from 1st July 2017.

Source:
http://www.straitstimes.com/business/economy/singapore-budget-2016-foreign-worker-levy-increase-deferred-in-marine-and-process

How to get a "YES" from the right candidate?

It is really no point attracting the right candidates, only to be rejected later. Not only do we understand how long it takes to nurse that broken heart – we also understand how much resources you have wasted such as your precious time. 

Over-Promise

Funny getting this as a reminder from a Recruitment Company? This is the fundamentals and we practise this daily in our course of work. Do not oversell your company’s expansion plans or company’s profile, or the amount of exposure or professional development plans you have for the right candidate. You might be able to get the right candidate to say YES for now, but definitely not for later when the right candidate is in your employment. You do not also want to be known as the workplace without integrity. 

It is fundamental for both the hiring manager, as well as the Candidate to have clarity on the roles and responsibilities and value of the roles and responsibilities. 

Understand your Competitors

Do your homework. You should understand not just competitors who are selling similar products or services, but other companies offering a similar position. To get your right candidate to say YES, you will need to understand his value first. Providing a low salary package would mean you do not appreciate his value, while providing a high salary package would mean you are overstating his value. 

Understand your RIGHT Candidate

What do your right candidate value? Through engaging your right candidate and understanding this, you can have this position closed not only now, but later. Employers need to understand what candidates value – and it is always not just the name of the position, or salary – but personal and professional growth. 

Every point of engagement would then represent an opportunity to share what you can offer, and to reinforce your employer branding and values. Convince them your workplace is the ideal choice. The best time to share this is during your orientation where they feel a part of your organization and is embraced into the culture. Provide opportunities for your new entrant to share about their challenges, and always provide an open communication between the reporting superior and the right employee. 

Respecting your Candidates

This means no last-minute cancellations, or having interviews with candidates after their interview time scheduled. You might have the bargaining power now – but not at the expense of your reputation. Letting candidates wait for you do not reflect candidate’s commitment and interest to the position, but it shows how your companies “respect” people.  

The emphasis of interview questions should be related to work instead of personal questions. Good candidates are more interested in sharing how they can contribute, and share what they have learnt over their past experiences. This also means you are transparent with your Candidates so as to clarify their expectations. 

Interviews are a two-way process. In this age, you are not just evaluating your candidates but candidates are evaluating you. Give a chance for your good candidates to ask questions. 

Short Response Time

Once you are done with the interview, please keep your response time short. You should inform candidates 2 days after their application or their interview if they have been shortlisted or selected. Candidates, especially good candidates will not wait for too long. 
You do not want to be the one crying over spilt milk. 

Ease Your Mind with Recruitment Process Outsourcing (RPO)

Some organizations have come to understand the significant importance of outsourcing the recruitment needs to recruitment firms. These days, HR are moving into the strategic roles and will want to reduce as much administration as they could, in order to focus on the planning and executing of strategic directions.

With RPO, HR can now finally let go of administrative works from their shoulders. Recruitment can really be a timeless and boundless process within the department. This process will repeat itself and HR practitioners will not like such monotonous nature in job. In fact, albeit spending time with administrative matters, HR practitioner always understands that efficiency in the key in delivery solutions. How much have these administrative matters tie you down and you realized that you were unable to sit down to resolve the key and prioritized matters?
Look for the right firms in supporting RPO, they are present to ensure that it lightens your loads in many areas of work such as scanning through resumes, communicating of job scopes, coordinating of interview arrangements and even offering and signing contracts with selected candidates.

While RPO firms help reduce the burden on administration, organizations can also further leverage on the pool of candidates. RPO firms will also have the eagerness and selfless plan to observe analytic trends and results. Not only does RPO firms provide administrative services, they may even help you on analytical data. RPO might even provide you wages and benefits comparison among different industries.

RPO firms would also want to position themselves as strategic partners. RPO would want to allow organizations see the importance needs for future growth. Having integrated both services would help organizations achieve great clarity in recruitment, administration and management affairs. It continuously builds the connections that can produce greater productivity.