The Employment Claims Act is expected to come into effect by April 2017
On 1 November 2016, the Employment Claims Act (the “Act”) was published in the Government Gazette. The Act was passed by Parliament in August 2016 following a public consultation carried out by the Ministry of Manpower (“MOM”) earlier this year. The Act will facilitate the expeditious resolution of salary-related employment disputes by providing mediation services and establishing Employment Claims Tribunals (“ECT”) to help resolve these disputes. The Act is expected to come into effect by April 2017.
At present, there are three options available to employees who have a salary-related claim against their employer. Union members have recourse to conciliation under the Industrial Relations Act, employees covered by the Employment Act (rank-and-file employees and Professionals, Managers and Executives (“PMEs”) earning up to $4,500 per month) have access to the “Labour Court” at the MOM and all employees have access to the civil courts. However, the Act aims to give all employees access to an affordable and expeditious way to resolve their salary-related disputes.
The key provisions of the Act are set out in the table below:
Key Provisions of Employment Claims Act
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What disputes will be heard by the ECT?
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- Contractual salary-related claims, including payment of allowances, bonuses, commissions, salary in lieu of notice and retrenchment benefits or any other dispute matters specified in the First Schedule of the Act.
- Statutory salary-related disputes on employee entitlements under the Employment Act, Retirement and Re-employment Act and the Child Development Co-Savings Act, including unpaid salary, overtime pay, salary in lieu of notice, employment assistance payment and maternity benefits or any other dispute matter specified in the Second Schedule to the Act.
- Claims by employers regarding notice pay as specified in the Second Schedule to the Act.
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Who will have access to the ECT?
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- All employees covered by the Employment Act, Retirement and Re-employment Act and the Child Development Co-Savings Act.
- Employees, including PMEs, who earn more than $4,500 per month and are beyond the scope of the Employment Act.
- Public servants, domestic workers and seafarers with statutory-related salary disputes regarding employment assistance payment and maternity benefits.
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How do I lodge a claim with the ECT?
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- All parties must go through mediation conducted by MOM-approved mediators.
- Claimants must submit a request for mediation within one year after claim arises, or within six months from the end of the employment relationship.
- If mediation is successful, parties will sign a settlement agreement to be registered in the District Court.
- If mediation is unsuccessful, the mediator will issue a referral certificate for a claim to be lodged at the ECT.
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What is the jurisdiction of the ECT?
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- The claim must be for one or more amounts of money, each relating to a specified employment dispute.
- The amount claimed must not exceed the applicable prescribed claim limit, being $30,000 for cases which go through mediation with union involvement, and $20,000 for all other claims.
- The claim cannot be divided and pursued in separate proceedings.
- A claimant may abandon the excess amount so that the ECT has jurisdiction to hear the claim.
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Who can appear at an ECT hearing?
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- A party must generally act in person.
- No legal representation permitted.
- The Government may be represented by a public officer and a body corporate may be represented by an officer or employee.
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How will an ECT hearing be conducted?
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- The hearing will be conducted in private.
- Proceedings will be conducted in an informal manner.
- The ECT will adopt a “judge-led” approach to identify the relevant issues and ensure the relevant evidence is adduced.
- The ECT will not be bound by the rules of evidence.
- Evidence is not required to be given under oath.
- An appeal to the High Court may be permitted on a question of law, or a jurisdictional matter with the leave of the District Court.
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