From 1 April 2016, all employers will be required to issue itemised payslips and key employment terms (KETs) to employees covered under the Employment Act. There will also be a new framework to treat less severe breaches of the Employment Act.

The amendments of the Employment Act enables employees to better understand how their salary is calculated and their employment terms and benefits. This also helps employers prevent misunderstandings and minimise disputes at the workplace.

Employers can read more about the requirements from MOM for:

1.Itemised payslips

2.Key employment terms (KETs)

3.Keeping employment records

In addition, from 1 April 2016, MOM will set up a framework to treat less severe breaches of the EA as 「civil breaches」 which attract administrative penalties. For a start, the breaches are:

1.Failure to issue itemised payslips.

2.Failure to issue KETs in writing.

3.Failure to maintain detailed employment records.

4.Provision of inaccurate information to the Commissioner for Labour or inspecting officers without the intent to defraud and mislead.

How the changes came about

The changes highlighted here are the result of a review of the Employment Act. Feedback was obtained through several platforms, including public consultations conducted in July to October 2013. Proposals were evaluated by employers, unions and the Government.

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