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Raising Standards for Contract Employees

Are you on a term contract? There are quite a few changes in store for you if your employer has signed on to a new standard. Here are the details.
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By and Photo Shukry Rashid 31 Jul 2017
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Almost 300 employers have signed on to commit to the Tripartite Standard on Employment of Term Contract Employees. They come from various sectors, including the Singapore Public Service and account for about 26,000 or 15 per cent of all term contract employees in Singapore currently.

Second Minister for Manpower Josephine Teo launched the standard on 31 July 2017 at the Devan Nair Institute for Employment and Employability. Developed by the tripartite partners, the standard was first announced by Manpower Minister Lim Swee Say during the Committee of Supply debates in March this year to fill the gaps between employment laws.

Second Minister Teo said that the purpose of the standard is to “identify and recognise the companies with progressive practices that go beyond what is required under the Employment Act.”

NTUC President Mary Liew said: “Our workers aspire to grow and thrive in a workplace that is progressive. We welcome the public commitment by employers to adopt progressive practices beyond what is mandatory. We are encouraged by the positive start and look forward to working with more employers as they come on board. In the Labour Movement, we are also working closely with management to implement it on the ground.”

Employers who adopt the standard will be listed on the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) website, the Jobs Bank at a later stage, and they can use a logomark (above) for their recruitment and marketing efforts.

For employers to qualify for the standard, they must be progressive in three areas: leave benefits, notice period and training.

Leave Benefits

Companies signing up to the standard will commit to recognising employees’ cumulative length of service when calculating leave entitlements instead of resetting employees’ leave days whenever their contracts are renewed.

Companies will add up to 14 days of leave days or more for employees, as long as the breaks in service are within a month.

Second Minister Teo said: “Their term contract employees have the assurance that even if they are not regular staff, they get comparable leave benefits which can increase from the annual minimum of seven days up to 14 days.”

Notice Period

For notice period, many contract employees do not have the same notice periods as compared to permanent employees because employers may not take into account their past service.

Companies that commit to the standard will serve notice for early termination, or for non-renewal of contract in a fair manner. Similarly, this will be cumulative to their length of service.

Second Minister Teo said: “The longer the cumulative length of service, the longer the notice period. Term contract employees have the assurance that like regular employees, they get reasonable notice to find a new job, or notice pay.

Training

Companies will also invest in training for term contract employees as they do for permanent staff so that they can perform their jobs well.

The tripartite partners plan for more employers to come on board the standard first before raising the standards further at a later stage.

The Tripartite Standard on Employment of Term Contract Employees is the first of five intended standards that the tripartite partners intend to roll out by the end of the year, with more to come in 2018.

Good to Know

Interested employers who would like to adopt the tripartite standard can contact TAFEP at ts@tafep.sg for more information.