Tan Chuan-Jin
Singapore
“A step-parent who wishes to leave any part of his or her estate to a stepchild is encouraged to make a will. Intestacy law would apply in cases where a person passes on without a will.”
“Last year, we reviewed and extended the Child Development Account, or CDA benefits to children of unwed parents. The Government granted CDA benefits, to children of unwed parents born, or with an estimated date of delivery, from 1 September 2016. It is generally good practice to implement our policies prospectively.”
“The Ministry of Social and Family Development (MSF) does not track the number of persons who choose to remain homeless instead of being admitted into shelters. When MSF receives information on persons who may be homeless, we initiate contact with these persons on the ground to offer assistance.”
“Our law places the child's welfare and interests at the heart of an adoption decision. We must not forget that such an adoption is a life-changing event because when an unwed mother adopts her child, the duties, obligations and liabilities of the biological father are terminated.”
“The Early Childhood Development Agency (ECDA) works closely with the Housing and Development Board (HDB) to plan for preschools in upcoming Build-To-Order (BTO) developments, including Bidadari new town. To better meet the needs of young parents, new preschools will have larger capacities and also be completed earlier where possible.”
“The Silver Support Scheme under the Manpower Ministry provides an income supplement to seniors who had low incomes through life and who now have little or no family support. Beyond ComCare, we are also expanding upstream intervention to strengthen the resilience of vulnerable families and their children to set a good foundation.”
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“We are putting in efforts in terms of incentivising, in terms of resourcing pro-work-life balance arrangements, and in terms of the tripartite effort to encourage this to take place in our workplace. It is going to take time. We are un-doing many years of habit that has been put in place but it is an important objective to work towards. I do urge every individual to look at it from his or her own perspective as an employee, particularly in your own workplace. There are changes we can make. We should endeavour to do that. 6.10 pm Assoc Prof Tan Kheng Boon Eugene: Mdm Speaker, I would be much obliged if the Minister could explain why the overtime rate payable for non-workmen is capped at $2,250 when the salary threshold for such non-workmen under the Bill is $2,500.”
“Mdm Speaker, work-life balance is something that I am particularly concerned about. We have a 44-hour work week. It translates to about nine hours a day. We do want to make sure that as far as our workmen are concerned, the appropriate limits are put in place, the OT is in place. That part is being addressed. The Member's concern is with regard to PMEs. Many of us here in this House work fairly long hours, too. Some of us work long hours, some of us are also employers and we also subject our colleagues to those long hours. How do we address that? It is a big cultural change. For one reason or another, we have developed a culture of being hardworking; but taken to the limits, there Page: 105 will be disamenities in terms of morale, in terms of staff engagement and so on. Enlightened companies do recognise that. You do find increasingly more companies, and we will begin to see more companies, embracing flexible work arrangements at the workplace. We strongly encourage that. It is in many ways a movement. Can you really mandate that change? I am not sure that it is necessarily the right way to do it for PMEs, but the effort is there. It is not just for the Government. The Government needs to signal in terms of the way we manage our Ministries and agencies, as well as companies that are progressive. We need to celebrate those progressive work practices, share them and to see how – rather than a decrease in productivity – that you would deepen staff engagement, possibly staff retention, and that turnover is less. It does not impact necessarily the bottom line. That is the ongoing effort that we have to put in place. But, at the present, we do not believe that legislation itself will change that issue.”
“Mdm Speaker, with regard to the deductions, it is an area of concern which is why we moved some of the changes here. Deductions for accommodation and amenities and services – one of the questions that was raised by Mr Giam earlier – should be factored at the actual cost and be accepted by the employee. Deduction for amenities and services is not common. Employers need to apply to the Commissioner before deducting for amenities and services. So, there are checks in place, but I do fully recognise that there are concerns about the imbalances in the relationship between employers and employees. So, should we find that deductions are excessive, we do encourage Page: 104 workers or those who are aware of these cases to flag it up to MOM so that we can go in and look at it in detail. With regard to the second question, I would refer Members to my earlier response in the way we enforce non-payment or late payment of CPF. The priority really is to make sure that the entitled monies are provided to the people. That is the first priority, and we find that, in most cases, employers begin to move once we go in. We then move on to the prosecutory stage. That is the way we approach it. We find that, by and large, employers do respond. Where they do not respond, that is when we bring in the full letter of the law in order to punish the companies. But we will at the same time make sure as far as possible to extract the monies to be made payable to the people. There will be circumstances where, perhaps, not so much because of the recalcitrants but because of closure of the companies and so on, in those extreme cases, there will be challenges in recovering the monies. But, in most cases, we are able to recover the monies. 6.07 pm”
“Like Mr Patrick Tay, Mr Gerald Giam and Ms Foo Mee Har, I also agree that the evolution of work arrangements does make it increasingly difficult to draw a line between the workmen and non-workmen. I have mentioned this before as well. We do need to work towards removing this distinction in a practical way in the medium term. Page: 103 Ms Lee Li Lian asked for the rationale for the CDCA amendment. This is to make clear that parents who both have an older Singaporean child and a younger non-citizen child should not claim leave under both the EA and CDCA. Many of you have raised a range of issues; many of them technical and very specific in nature. My Ministry's officials will be quite happy to work with you to provide and our tripartite partners to issue clarifications as appropriate. I would like to conclude by supporting Assoc Prof Tan's call for shared effort to build a more inclusive society. Overall, I believe that this Bill supports our journey forward to develop progressive workplaces for our people. A lot of us spend a lot of time at the workplace and I think it is also appropriate that these workplaces need to be great workplaces. They need to be progressive workplaces. Madam, to sum up, this Bill is about better protection for more workers but still at the same time giving employers the flexibility to continue to be able to sustain their business to remain competitive so that they can continue to provide good jobs and opportunities for Singaporeans. Once again, I would like to thank all our stakeholders, including many Members of the House for all their suggestions and inputs for the support of this Bill. 6.04 pm”
“I agree in principle that it is important to encourage support for elderly parents. However, as Ms Liew also noted, the Government has recently taken significant steps with a series of family-related leave schemes as part of the Marriage and Parenthood package. We are mindful that we should allow businesses to adjust and we do not have plans to legislate any family leave schemes at this present stage. As for Dr Chia's suggestion of a national code of employment conduct, he would be pleased to know that the tripartite partners have come out with Guidelines on Best Work-Life Practices to encourage companies to grant non-statutory leave to employees for family-related issues. Ms Foo called for greater support for flexible work arrangements and I echo that. This involves quite fundamental shifts in terms of the cultural and mindset shifts in our workplaces and especially with the mindsets of employers. I would suggest among employees themselves, I think a lot of it is also brought upon by our own desire not to seemingly lose out and frankly a lot of it just revolves round bad habits that are in the workplace, both from the employer's perspective and even ourselves as employees. I do not think legislation itself will solve the more fundamental issue. Indeed, we are trying to press ahead to encourage companies to implement work-life strategies, to find different schemes to incentivise companies to move along those lines as part of the effort to attract and retain talent through various schemes. We also see the response from many younger Singaporeans today, and companies have to pay attention to this. I believe the market will soon have to begin to adjust as well. It is really in the interest of companies to do so in this tight labour market.”
“With our tripartite partners, we will continue to review and enhance the ways we extend targeted assistance and support to low-wage workers as we strive towards a more progressive and inclusive society. In terms of enforcement, Mr Gerald Giam asked for the rationale for the enhanced investigatory powers. While there is a need for employment inspectors to have such powers to secure the immediate cooperation of suspects to facilitate investigations, in cases of failure to pay salary which our Ministry considers as one of the most serious offences, similar powers are already accorded to employment inspectors under the EFMA. All employment inspectors will have to be adequately trained to execute arrest and search of suspects. MOM will exercise the new power of arrest judiciously. Members have made other useful suggestions pertaining to the Industrial Relations Act and the second phase of the EA review. One such area is mechanisms to resolve employment disputes which Mr Zainal Sapari and Mr Hri Kumar talked about. MOM and the tripartite partners are actively looking into this. I have talked about this briefly before, and I will be giving more information on this probably in the first half of next year. Mr Zainal Sapari also called for greater accountability on service buyers for outsourced workers; while Ms Mary Liew, Ms Foo Mee Har and Mr Patrick Tay proposed improved protection for contract Page: 102 workers. All these will be addressed. They are important issues. It takes some time to address because for contract workers, there is really a wide range of different contexts in which contract workers operate and all these will be addressed in the next phase of the Employment Act review by next year. Ms Mary Liew and Dr Chia Shi-Lu suggested mandatory eldercare leave.”
“Creating good jobs means that we also need to make sure that the economy remains competitive, that employers have a viable business model that can go on because, in turn, that will also create opportunities for our people. We also need to look at short-term expenditure and longer-term retirement needs. These will include Workfare Income Supplement, and sector-specific initiatives to raise the employment standards and benefits for low-wage workers, especially in the cleaning and security industries. Page: 101 It is really multi-faceted. While we look at a specific Act today, there are also other corresponding efforts that are trying to uplift the workers in the specific area of concern. We have also been raising awareness of compliance with the Employment and CPF Acts, as discussed earlier under the WorkRight campaign and to ensure that the rights of vulnerable workers are protected. Those are fundamental because they ensure that the various schemes that are available can actually reach the very people that we are trying to help. Beyond MOM, like I said, there are many different assistance schemes that are available in terms of housing, healthcare and education. For example, the Community Health Assist Scheme (CHAS) allows Singaporeans from lower- and even middle-income households the convenience of seeking subsidised care at private GPs and dental clinics near their homes. I do applaud and recognise our partner NTUC's efforts to widen the outreach and make assistance more accessible through the U Care Centre. That is an important development and we strongly support that.”
“Vulnerable workers do deserve our special attention not just in terms of the workplace but across in the many different dimensions for which we have many different assistance programmes that are available. But we also need to be mindful that if we begin to impose too many conditions, we also do run the risk that, inadvertently, we might tip the balance and affect their employability itself. Then we end up hurting the very people that we are trying to protect. So, while the concerns are valid and we continue to look at this base of protection to see how we can expand it, we have to continue to watch carefully because we do not want to end up hurting the very groups themselves; being mindful that the workspace and in terms of the Employment Act is one dimension. For them, it is a multi-dimensional issue in terms of addressing the concerns and needs of these Singaporeans which are valid. The tripartite partners must continue to watch this space diligently and to debate this to make sure that we look after the workers. At the same time, the Government, on a whole-of-Government perspective, must look at this holistically to make sure that the different schemes are available to address the different needs for the different contexts. Overall, I believe that the current proposals maintain a reasonable and a good balance. We will continue to watch that and continue to evolve that space together with our partners. But legislative changes, as I have mentioned, are clearly not the only means we have to assist our low-wage workers. This multi-faceted approach on the employment front revolves around one key thing, which I strongly believe is that work is really the best form of welfare. It is about the ability to continue to create good jobs and to raise employment standards.”
“Drastic moves that hinder business operations could actually inadvertently affect the employability of the very workers that we are looking to help. The payslip issue which I elaborated earlier was one such example of trying to maintain that fine balance. We agree, in principle, that payslip is the correct way to go and that is where we intend to go too. But what we recognise also is the difficulty that some small businesses face. Another is the employment conditions imposed by employers that Ms Mary Liew raised; or also the exclusion of allowances from employee entitlements that Mr Patrick Tay mentioned. All these add up to the balance that we need to look at when we deal with these issues. There are many reasons why employers introduce employment conditions or clauses to protect the commercial interests of their companies. Where clauses are unreasonable or not aligned with the EA or other employment legislation, our laws will take precedence, nullifying those clauses, which means that employers do not have a free reign in terms of what they set in their clauses. Similarly, employers structure compensation packages to meet specific needs. We are, therefore, careful not to make a one-size-fits-all pronouncement that will inadvertently introduce labour rigidities. We will continue to work with Page: 100 tripartite partners to prevent abuse in a targeted fashion. Mr Zainal Sapari has proposed mandating more protection for our low-wage workers, such as greater medical benefits, greater compensation for work on rest days and shorter qualifying period for sick leave entitlements. I fully understand and appreciate where Mr Zainal Sapari is coming from.”
“We are studying how we can provide greater clarity to doctors when operationalising this. Mr Tay also sought clarification on the computation of overtime (OT) pay. Indeed, OT should be payable beyond the contractual working hours. However, employers are given flexibility on the rate of OT pay if the contractual hours are below the statutory limit of 44 hours, after which a minimum of 1.5 times rate Page: 99 must apply. We think that this flexibility is important or else employers may consider offering shorter contractual working hours, to the detriment of workers. Ms Foo Mee Har did say that Singaporeans work one of the longest hours already. As for the computation, there is a prescribed baseline formula which employers can refer to. Ms Foo Mee Har and Mr Gerald Giam also talked about compensation for PMEs required to work on public holidays. Given the nature of PME jobs, our intent remains to give employers the additional option of giving time-off in-lieu, instead of just keeping to the current rules, which allow the employer and employee to agree to substitute any other day for the public holiday or pay an extra day's salary. The duration of the time-off in-lieu can be mutually agreed between the employer and the PME to enhance the flexibility. Only where there is no agreement does the law clarify that it should be four hours if the PME works on that holiday for less than half a day, or a full day if the PME works for more than half a day. As we safeguard the interests of workers, we also cannot forget that at the same time we also need to balance this with employers' needs, as Dr Chia Shi-Lu and Mr Dhinakaran, a businessman himself, noted.”
“Mdm Speaker, I would like to thank the various Members for their views and their broad support for the proposed changes to the Employment Act (EA). I will now address some of the issues raised by the Members. Assoc Prof Eugene Tan asked how the salary thresholds were arrived at. For non-workmen, the increase from $2,000 to $2,500 corresponds to the general increase in median salaries since the EA was last reviewed in 2009. For PMEs, we covered those earnings up to $4,500 for salary protection in 2011, and the tripartite partners, in their negotiation, agreed that it was too soon to revise its threshold. Assoc Prof Tan also talked about extending Part IV of the EA to PMEs. I mentioned earlier that Part IV protection is generally accorded to more vulnerable workers and many of the time-based provisions, for example, hours of work, rest days and so on, are less relevant to PMEs due to the nature of the work. I have also explained why the tripartite partners felt it was not unreasonable for employers to ask for qualifying period for PMEs before they can seek redress for unfair dismissal. Other jurisdictions, such as Australia and the UK, also impose such conditions for PMEs. There is no qualifying period for employees to seek redress for dismissals without notice. Mr Patrick Tay sought clarification on whether the notice of termination can be in electronic form. We take the view that employer and employee may agree to accept notice via electronic means, such as e-mail, as long as the information is accessible and usable for subsequent reference. Mr Patrick Tay also asked for clearer articulation for the definition of "cosmetic" treatment. As mentioned earlier, the assessment of whether a treatment is cosmetic or not will be based on the opinion of the medical practitioner.”
“We will work with our tripartite partners, SNEF and NTUC, to conduct briefings and workshops to communicate the Employment Act changes to employers and employees. In particular, we will be collaborating with SME centres, supported by SPRING, to reach out to SMEs on the EA changes and provide hands-on guidance on the tools available and we encourage Members of this House to do your part as well to reach out to your constituents. Mdm Speaker, we started this important journey to review the Employment Act in April last year. The views and feedback from all stakeholders have helped to make the process more robust. I would like, in particular, to thank everyone who has contributed to the review, especially, NTUC, SNEF, SBF and Members of this House. The proposed amendments will better protect our workers, raise employment standards and provide employers with the flexibility to manage these changes. It will bolster our efforts to institute good employment norms and develop progressive and good workplaces for our people. Madam, I beg to move. [(proc text) Question proposed. (proc text)] 4.25 pm”
“And not everything, we believe, ought to be legislated at once as, ultimately, we aim to change behaviour in a sustainable way. We will, therefore, adopt a pragmatic and phased approach to allow time for these businesses to adjust. I just want to clarify that, in the main, most businesses are providing payslips. I think the challenge comes really with the small mom-and-pop shops and the small companies which will find difficulties on this front. So, as a first step, we will begin by issuing a set of Tripartite Guidelines by the first half of 2014 to help employers provide payslips and keep employment records for all employees. We will closely monitor the implementation of payslips and employment records before phasing in the requirements over time. Madam, even as we seek to raise labour standards, we fully appreciate the anxieties of employers, particularly the smaller ones, about rising compliance costs because a number of measures are being put in place on the manpower front as well. So, the Government will provide the necessary support to help them level up their practices. This will be good for employers in the long run. The assistance for companies will come in various forms. Page: 67 MOM is working with IDA to develop user-friendly tools to help prepare SMEs for the eventual requirements to issue payslips and to maintain employment records. We will tailor the support according to the diverse needs of SMEs and it is, indeed, very diverse. And this will range from providing simple payslip booklets and downloadable templates, to funding support to develop customised solutions. These will be made available by 1 April 2014.”
“Madam, we are also taking the opportunity to make technical amendments to the EA and the Child Development Co-Savings Act (CDCA) associated with the Marriage and Parenthood (M&P) measures announced by Deputy Prime Minister Teo Chee Hean in January this year. The CDCA will be updated to accurately reflect the policy that parents' total childcare and extended childcare leave is based on their youngest qualifying Singapore Citizen child. Page: 66 In addition, we will prescribe new formulae in both Acts to facilitate computation of parents' entitlement to maternity, paternity, shared parental or adoption leave to take leave flexibly by days rather than by block weeks if there is mutual agreement. The Bill is proposed to come into effect on 1 April 2014 for most key amendments. For the amendment related to the reduction of the time-bar for retrenchment benefits, this will take effect on 1 April 2015, essentially, to provide more time for employers to update their contracts and collective agreements to comply with this new requirement. Madam, one issue that received a fair amount of public attention was that of payslips. During our consultations, many members of the public felt that employers should provide payslips to their workers. Indeed, this will raise workers' awareness of their salary entitlements and also protect employers from unsubstantiated claims by their employees. All round, I think we all agree this is good HR practice. However, having said that, we also received strong feedback that many SMEs, especially the smaller ones like retail shops in HDB estates, for example, are not issuing payslips today and would actually find the process of doing so onerous. We understand their concerns.”
“Therefore, our proposed amendments give employers the additional option to provide time-off in-lieu for PMEs. Four, we will exempt employers from having to grant paid sick leave and bear medical examination expenses of any employee who chooses to go for treatment for cosmetic purposes. The assessment of whether a treatment is cosmetic or not would be based on the opinion of the medical practitioner performing the examination and providing the appropriate medical certificate. Thirdly, it is on enhancing enforcement and compliance. As we raise employment protection and standards, we do also need to correspondingly enhance my Ministry's enforcement ability and the teeth that will accompany that. We propose to put in stiffer penalties for failure to pay salaries. We will introduce a mandatory minimum fine of $3,000 for first-time offenders and $6,000 for repeat offenders. We will also increase the maximum fine from $5,000 to $15,000 for first-time offenders and from $10,000 to $30,000 for repeat offenders. In addition, the maximum composition sum will be increased from $1,000 to $5,000 to bring it in line with the other employment legislation, such as the Employment of Foreign Manpower Act (EFMA). We will also enhance MOM's enforcement and investigatory powers. This includes granting employment inspectors the power to arrest any person reasonably believed to be guilty of the failure to pay salary and to enter workplaces to conduct audits. We will also make individuals, such as directors or partners of companies, more accountable for EA offences committed by the company.”
“Madam, even as we enhance employment protection and benefits for workers, we also do need to strike a balance by allowing businesses appropriate leeway to implement these changes. Hence, the theme of the second set of amendments: Flexibility for Employers. There are four key amendments related to this. One, managing OT or overtime cost. One, even as we increase the Part IV salary threshold for non-workmen to $2,500, we will help employers manage their OT cost by capping the OT rate payable at the salary level of $2,250. I have included in the handout examples to help Members better understand the mechanics of how this works. Two, we will extend unfair dismissal protection to PMEs earning up to $4,500 a month. This means that for dismissals without notice, we will provide PMEs with the same protection as rank-and-file employees. For dismissals where notice is given and contractual terms of termination are complied with, we will set a 12-month qualifying period before PMEs who claim unfair dismissal are eligible to seek redress. The qualifying period is a fair request from employers, who need time to assess the PMEs' suitability for the job. In such cases, the onus will be on the employee to substantiate their unfair dismissal claim, for instance, by showing that the dismissal arose from the employer's intent to deprive him or her of employment benefits he or she would otherwise have been entitled to. Three, one of the general provisions of the EA which will be extended to relevant PMEs is paid public holidays. Currently, employees covered under the EA and who are required to work on public holidays must be compensated with Page: 65 an extra day's pay or a substitute day off. This may be difficult and impractical to apply to PMEs due to the very nature of their work.”
“In line with general salary increases over the years, we propose to raise the salary threshold for non-workmen from $2,000 to $2,500. This effectively extends the coverage to benefit about 150,000 junior staff who are not professionals or executives. Another significant extension of protection is for Professionals, Managers and Executives, or PMEs for short. They now account for 31% of the resident workforce. This is up from 27% 10 years ago. As their proportion increases in our workforce, we propose to extend protection for those earning a basic monthly salary of up to $4,500. With more Singaporeans becoming and aspiring to become PMEs, it is timely to extend the more junior ones protection, such as those against unfair dismissal and sick leave benefits. The change will benefit approximately 300,000 PMEs. This Bill will also improve employment standards and benefits in line with the evolving employment landscape. Page: 64 To protect employees against excessive salary deductions by unscrupulous employers, we will impose a further 25% sub-cap on deductions for accommodation, amenities and services, on top of existing safeguards. Next, for employees currently covered under Part IV of the Act, we will shorten the non-entitlement period to retrenchment benefits from three to two years, to be in line with shorter employment norms. In addition, we will extend the validity of the collective agreement for employees transferred to a new company after restructuring. This means the unions can continue to represent employees in the new company for 18 months after the date of transfer or until the expiry of the collective agreement, whichever is later. This will provide greater assurance for affected employees.”
“Mdm Speaker, I beg to move, "That the Bill be now read a Second time." Madam, the Employment Act (EA) is our main labour law that seeks to ensure reasonable labour standards for workers while balancing employers' need to stay competitive, and staying competitive ultimately benefits workers in terms of creating jobs and opportunities. Since the last amendment in 2009, the profile of our labour force has changed; and employment practices have Page: 63 also evolved. A review is, therefore, timely to ensure that the EA remains relevant. During the Committee of Supply Debate in March this year, I updated this House on the review of the Employment Act. My Ministry, together with our tripartite partners, carried out extensive consultations. The Bill that I am presenting today is the outcome of this review. The Bill proposes amendments to the Employment Act in three main areas: firstly, to extend better protection to more workers; secondly, accord flexibility to employers in areas where there are practical business concerns; and thirdly, enhance enforcement and compliance with the Employment Act. Let me elaborate on the key amendments. First, on better protection for more workers. This first set of amendments proposes to extend better protection to more workers and improve employment standards. Madam, Part IV of the Employment Act provides for working hours, rest days, overtime (OT) payments and other conditions of employment for the more vulnerable employees. Currently, Part IV applies to workmen engaged in manual labour, such as machine operators and cleaners, who are earning a basic monthly salary of up to $4,500, as well as non-workmen, such as clerks and receptionists, earning a basic monthly salary of up to $2,000.”
“Mdm Speaker, as suggested by Mr Png, perhaps we could address this at a different forum. Specifically, the Bill addresses a number of these issues, but I grant that some of these concerns are recurrent issues, some of which we have addressed previously. We would be happy to take it up if the Member filed a separate Parliamentary Question. [(proc text) Question put, and agreed to. (proc text)] Page: 62 [(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)] [(proc text) The House immediately resolved itself into a Committee on the Bill. – [Mr Tan Chuan-Jin] (proc text)] [(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)]”
“Mdm Speaker, I would like to thank the Member for the supplementary question. We would like to support home ownership and, therefore, CPF members can actually use their OA savings to finance their own home purchase. The OA contributions, however, are not sized to support additional housing needs that the CPF family members may have. For the OA account, at present, we are not sizing it such that it is meant to cater for this need. Essentially, we do encourage CPF members to set aside sufficient CPF savings for retirement and should not compromise this by overspending on their housing or in support of their parents' housing. The long and short of it is how we size that particular account. At present, we do not believe that that is the approach that we would like to take. Page: 34”
“Mdm Speaker, we are constantly in dialogue with the various chambers of commerce. As a result of tightening, I would suggest that it is not just foreign companies but local companies as well, that have expressed concerns. As the Member has rightly pointed out, this is one consideration that companies will look at. I have said before in this House that the competitiveness that Singapore offers extends beyond a diverse and open labour market. There are many pluses that are going our way: rule of law, transparency, flexibility, the infrastructure and so on. All these go into the consideration of any company operating here. Page: 32 Having an open diverse workforce is beneficial and it does eventually benefit Singaporeans as well. So, these are ongoing discussions we have with various companies, both local and foreign. We are very mindful of their concerns. That is why I think we do take a calibrated approach and we proceed quite carefully on this front. The overall message is consistent. We do need to tighten and we do need to move on to a much more productivity-led growth as well as a more manpower-lean approach towards growth.”
“Members can also call CPFB's hotline or approach staff at CPFB's service centres directly to find out more. If members are uncertain about whether they have already made a nomination, they can check their annual statement of account. Page: 202”
“When a CPF member passes away without making a nomination, his CPF monies will be distributed to his immediate family by the Public Trustee according to intestacy laws. Distribution by the Public Trustee safeguards the welfare of his immediate family members. For example, if the deceased is single, his CPF savings will be distributed by the Public Trustee equally between his parents. If he is married, his spouse will receive half of his CPF savings, and his children will share the remaining half. For Muslims, their CPF savings will be distributed by the Public Trustee according to the Administration of Muslim Law Act in a slightly different manner, but the beneficiaries remain the deceased member's immediate family members. On average, about 20% of members who passed away each year did not make a nomination and they had their monies distributed by the Public Trustee in this Page: 201 way. However, the CPFB's nomination scheme provides CPF members with an option to nominate other recipients of their CPF monies upon their demise, and how much each nominee should receive. As of 31 October 2013, about 50% of all CPF members aged 16 and above have made a nomination. After an application has been made by the member's beneficiaries, the Public Trustee will generally distribute the monies within four weeks from the date of receipt of the full set of required documents from the member's beneficiaries. Similarly, nominees who have been nominated under the CPF nomination scheme will also generally receive their monies within four weeks from the date CPFB receives an application from the nominee. CPFB provides comprehensive information on the distribution of their CPF savings by the Public Trustee, as well as CPFB's nomination scheme, via a webcast on CPFB's website.”
“Page: 167 The Government will continue to reach out to elderly Singaporeans so that those who need to monetise their homes are aware and understand the benefits of the schemes. At the same time, CPF Board will also continue to enhance its member education efforts to encourage and help CPF members to plan early for their retirement, to not overstretch themselves in their home purchase and leave enough savings in their CPF accounts for their retirement.”
“First, let me share that the CPF Board has been actively reaching out to CPF members to raise awareness on the importance of retirement planning and providing information to help them plan for their retirement. The CPF member education initiatives are conducted through various channels and platforms, such as public talks, events and online outreach via the CPF website. CPF Board also encourages CPF members to take advantage of the voluntary contribution schemes such as the Minimum Sum Topping-up Scheme (MSTU) where they can top up their CPF accounts or those of their loved ones to better secure their retirement adequacy. Recently, the CPF Board launched its Are You Ready? Initiative to encourage Singaporeans to think carefully about their cash flow management, healthcare, home financing and retirement planning. For example, members who are getting married and buying their first home are advised and provided the tools to do their sums to buy a house within their means. To further extend its reach, CPF Board also works with other partners, such as MoneySENSE, the Financial Planning Association of Singapore and HDB. The Enhanced Lease Buyback Scheme (Enhanced LBS) and Silver Housing Bonus (SHB) Scheme were introduced earlier in February this year to provide more options to elderly Singaporeans who wish or need to unlock the value in their housing assets to supplement their retirement savings. We recognise that elderly Singaporeans today may not consider housing monetisation as the preferred option to provide for their retirement. Those who have sufficient savings or family support may also not feel the need to monetise their homes.”
“The primary objective of the CPF is to help members save for their basic retirement needs. Members can only withdraw amounts from retirement accounts in excess of the Minimum Sum (MS) and MediSave Required Amount (MRA). As a concession, members who are not able to set aside the full MS and MRA may still withdraw $5,000 when they turn 55. Members also have the option to pledge their property for withdrawal of Retirement Account savings in excess of half the MS. Other than withdrawals in these instances, Retirement Account savings are reserved for payouts in retirement and cannot be withdrawn for other purposes including Haj pilgrimages.”
“We lowered CPF contribution rates in 2005 and 2006 for workers aged 50 to 55. This was done to improve their employability because seniority-based wage systems were common then, which discouraged employers from retaining and hiring older workers. However, since then, older workers' employment rates have improved considerably, with progress made in wage restructuring and other efforts to enhance their employability. In 2012, we consulted our tripartite partners and reached a consensus that the CPF contribution rate for workers aged 50 to 55 should eventually be restored to the same level as younger workers. We took the first step last year by raising the contribution rate for workers aged 50 to 55 by 2.5 percentage points in September, bringing their total CPF contribution rate up from 30% to 32.5%. We will continue to monitor the situation on the ground before taking the next step. While we remain committed to restoring the contribution rates of older workers, this must be done at a suitable time to moderate the impact on take-home pay for employees and business costs for employers. Page: 160”
“For example, NEA's Clean Mark Accreditation Scheme was enhanced in 2012 to encourage cleaning companies to aim for continuous productivity improvement and to adopt better employment standards. Government agencies have also taken the lead to only procure from accredited cleaning companies, as well as security agencies with at least a "B" grading in the Security Agency Grading Exercise conducted by the Singapore Police Force. There are real benefits to be gained through best sourcing. Service buyers can enjoy enhanced service quality, while service providers can attract and retain the manpower they need through providing better employment terms and conditions. Furthermore, the basic employment rights of workers can be safeguarded, while procurement practices that tend to depress workers' wages can also be curtailed. This is especially important for low-wage workers who Page: 159 are particularly vulnerable to cheap sourcing. Going forward, we will continue to work with our Tripartite Partners to promote wider adoption of best sourcing practices.”
“With more companies outsourcing their non-core functions, the Government has been working closely with our Tripartite Partners Page: 158 to promote best sourcing. Recognising that the business and employment practices of service providers are shaped by the outsourcing practices of service buyers, the Tripartite Committee for Low Wage Workers and Inclusive Growth (TriCom) has focused on encouraging service buyers to outsource responsibly and adopt best practices when doing so. To help businesses successfully implement best sourcing, the TriCom released the updated Tripartite Advisory on Best Sourcing Practices in 20128, which contains examples of best sourcing practices that can help draw out better outcomes from service providers and improve the welfare of their workers. This was accompanied by a step-by-step best sourcing implementation guidebook, which included examples of clauses that can be inserted in tender requirements, scoring templates for tender evaluations and sample employment contracts that service buyers can use to implement best sourcing. A Workforce Skills Qualification (WSQ) training module was also rolled out to build up the best sourcing capabilities of procurement officers. Beyond these initiatives, NTUC's Unit for Contract and Casual Workers (UCCW) provides companies with grants of up to $150,000 under the Best Sourcing Initiative (BSI) funding scheme to help defray the initial costs of incorporating best sourcing into their procurement practices. In addition, the Government has put in place accreditation and grading schemes that make it easier for service buyers to identify the better service providers and to promote higher service standards among providers.”
“Based on a sample of 2,603 SMEs, more than half (54%) of all SMEs reported overseas revenue in 2012, a 10% increase from 20117.”
“Since 2010, the Government has introduced policies to restructure our economy to be more manpower-lean, including tightening of foreign workforce controls. Since then, we have received about 19,000 appeals related to S Pass and work-permit renewals from SMEs6. About 48% of these cases were considered favourably. These were mostly temporary concessions to help companies in their transition. We recognise that SMEs face rising business costs and tighter foreign worker restrictions. SMEs are a vital part of the economy – they make up 99% of enterprises and contribute to about 45% of GDP and 70% of employment in Singapore. That is why we have been actively engaging SMEs over the last few years, to gather feedback and understand their manpower challenges. Another common appeal from SMEs is to be able to retain experienced staff for longer periods. They may have been unable to do so because they could not Page: 153 obtain the skilled R1 status for their experienced Work Permit Holders (WPHs), which would have allowed them to stay longer. This is why we introduced the market-based skills framework in July 2013 to allow Services WPHs to attain skilled status if they earn at least $1,600 and have four years of working experience in Singapore, even if there was no training course for that occupation. Employers can then retain these skilled WPHs for up to 18 years, up from the maximum of 10 years for unskilled WPHs. Employers will also enjoy levy savings, as the levy for skilled WPHs is lower than that of unskilled WPHs. Despite the tightened manpower situation, this has not stopped SMEs from tapping on overseas business opportunities. Based on results from the 2012 SME Development Survey conducted by DP Singapore, more SMEs explored opportunities overseas.”
“HDB flat owners who are using CPF savings to service their monthly loan instalments are required to take up the Home Protection Scheme (HPS) or an equivalent mortgage reducing insurance. There are also HDB flat owners who are not using CPF savings to service their monthly loan instalments but chose to take up HPS. About 3% of HPS policy holders on the annual premium plan paid for their premiums partially or fully in cash this year. About 4% of HPS policy holders 55 years old and above on the annual premium plan had their coverage lapse due to non-payment of the premium. The HPS premium is deducted automatically from the Ordinary Account (OA) of CPF members. For those with insufficient OA savings, a grace period of two months is provided for them to make their premium payment. During the grace period, any new OA contributions are channelled first towards meeting HPS premium payments and then monthly loan instalments, to minimise lapses in coverage. CPF members are also notified to make cash top-ups to their OA, as required, to make up the shortfall for the HPS premium. If their children wish to assist with making premium payments, they can do via this route. CPF members can also choose to tap on the OA savings of their spouse, who must also be a co-owner of the flat, to pay for the premium. We will study the feasibility of using non-spouse co-owners' OA savings for the payment of HPS premiums, without affecting the payers' own retirement adequacy. We are also working with MND to study other options to help HPS policy holders who face difficulties in paying their HPS premiums to minimise lapses in HPS coverage.”
“From 2010 to 2012, the median gross monthly income from work5 of resident PMEs increased by 3.1% per annum in real terms, higher than the 2.7% per annum for all resident workers. While there have been more higher-skilled jobs available, we have also seen a growing supply of University graduates, who make up the bulk of PMEs. As a result, there are fewer vacancies for degree holder job seekers in 2012, compared to 2010. In September 2012, there were 92 degree level job openings for every 100 job seekers, compared to 112 for every 100 in 2010. As our economic restructuring gathers pace, the unemployment rate could increase slightly from the very low rates currently, for both PMEs and non-PMEs. Nonetheless, we expect the unemployment rate to remain low given our tight labour market. MOM will continue to help workers who are displaced have access to help in acquiring new skills and finding suitable jobs through WDA's Caliberlink or Career Centres at the Community Development Councils.”
“Our economic restructuring efforts are aimed at achieving economic growth driven by sustained productivity improvements rather than manpower growth. This will help our economy remain vibrant and competitive, so that Singaporeans continue to have good job opportunities. In the short-term, however, as the economy restructures, some jobs will be lost as firms improve their business models and processes. At the same time, new and better jobs will be created. This is part and parcel of an economy which is restructuring, with older less competitive firms giving way to newer more competitive ones. We must welcome this. What is important is that Singaporeans who lose their jobs are able to find new ones within a short period of time. This is the case today. Our jobs creation has remained high in the midst of the economic restructuring. Between June 2010 and June 2013, our total employment3 grew by 4% per annum, higher than the rate of 3.8% per annum in the last decade between June 2000 and June 2010. Jobs have been increasing across Services, Manufacturing and Construction. The Services sector and Construction sector had strong employment growth of 4.3% and 6.6% per annum, respectively, between June 2010 and June 2013, while Manufacturing jobs grew more slowly at 0.9% per annum in the same period4. As we restructure, we expect some increase in redundancies as workers move across jobs and industries. So far, the increase has been small. The incidence of workers made redundant in 2012 was only slightly higher at 5.8 for every 1,000 workers, compared to 5.7 for every 1,000 workers in 2010 when our Page: 141 economy rebounded strongly from the global financial crisis. PME wages have grown.”
“In the insurance industry, AIA, with its Earn-and-Save Scheme, credits a portion of the agents' commissions into their MediSave Accounts. We encourage more industry associations and companies to take on an active role in enhancing the welfare of their SEPs. Nonetheless, it remains important for SEPs to see it as their personal responsibility to save for their healthcare needs via MediSave. The Government provides support through measures, such as the Workfare Income Supplement (WIS) and MediSave top-ups. The maximum WIS payouts for low-income SEPs were recently raised in 2013, by 25% to 50% depending on age group. Ninety percent of the WIS is paid directly into the SEPs' MediSave Accounts. The higher WIS quantum, together with the announced increase in MediSave Page: 194 contribution rates for low-income SEPs from 2014, will further boost SEPs' MediSave savings. I would also like to assure members that the Government will take steps to ensure the affordability of MediShield Life premiums for lower-income Singaporeans.”
“Self-employed persons (SEPs) are required to contribute to their MediSave Accounts to save for their healthcare needs. The median MediSave balance of SEPs who are not concurrently employees has been increasing steadily at an average annual rate of 10% over the past five years, from $12,000 in 2008 to $18,000 in 2012. In 2012, 84% of the SEPs made their MediSave contributions or are on instalment plans for their MediSave contributions. To encourage more SEPs to make timely and regular MediSave contributions, the CPF Board reaches out to SEPs via annual mailers and road shows, and facilitates arrangement for those who wish to make their MediSave contributions via instalments. The CPF Board has also partnered several Licensing Authorities (LAs), to ensure that their licensees contribute to MediSave. The industry associations or companies can also play an important role in encouraging their SEPs to contribute to their MediSave. Under the Drive and Save Scheme initiated by the National Taxi Association and implemented in 2011, taxi drivers who contribute at least $15 a month to their MediSave Accounts will receive a MediSave co-contribution of $15 a month from their taxi companies. Between 2011 and 2012, about 17,000 taxi drivers have benefited from $5.9 million of co-contributions from the taxi companies. The taxi drivers themselves have also been contributing more. The average annual Medisave contributions made by the taxi drivers who are participants of the scheme in 2012 is $940. This is a significant improvement from their average annual MediSave contributions of $660 in 2010, before the scheme was introduced. There are other examples of industry-led initiatives. The Woodlands Transport Services launched a similar Serve-and-Save Scheme last year.”
“The Employment Act seeks to ensure reasonable employment standards while balancing businesses' need to stay competitive. We are always mindful of the need for protection, welfare and how it can impact worker's employability if overdone. We have recently introduced a series of statutory family-related leave schemes on 1 May 2013, as part of the Marriage and Parenthood package. These are positive steps for employees and we should allow time for businesses to adjust and adapt. At this stage, we do not have plans to legislate any new family leave schemes. Nevertheless, as part of the tripartite dialogue, the tripartite partners have come out with the Guidelines on Best Work-Life Practices to encourage companies to grant non-statutory leave to employees, such as compassionate leave, where business operations permit. We are heartened to note that even without legislation, nine in 10 companies (89%) already provide compassionate leave, based on MOM's survey in 2012.”
“When a CPF member turns age 55, his savings in his CPF Ordinary Account (OA) and Special Account (SA) will be used to set aside the Minimum Sum (MS) in his Retirement Account (RA). Members may use their RA savings in excess of half the Minimum Sum for housing. This is to ensure members have at least some level of cash savings for their expenses in retirement. Most members are familiar with this rule, and have planned ahead so that they would not be affected by the transfer of OA monies to the RA. CPF Board also sends letters to inform these members two months in advance, and holds seminars to explain what happens when they reach 55 years of age. There is a small group of members who may face difficulty in financing their housing instalments or appeal to use their RA monies to finance their child's tertiary education after their OA savings have been transferred to their RA at age 55. We have approved such appeals on a case-by-case basis. As for use of RA for medical expenses, this question ought not arise because OA savings cannot be used for medical bills in the first place. MediSave savings are set aside for this purpose and are not affected by the OA to RA transfer at 55. We have been receiving about 200-500 appeals related to housing and education annually, in recent years, from members who were affected by the transfer of their OA savings to RA. A large majority, about 98% of these appeals, are related to housing, and among these appeals, about 65% are successful. Page: 192”
“As the statistics requested fluctuate on a daily basis, we have provided the statistics as at end June 2013. Our non-resident population was 1.55 million, and the breakdown12 is below: In the month of June 2013, there were 1,261,00013 international visitor arrivals.14 Page: 191”
“The Special Employment Credit (SEC) is one of the measures in place to encourage employment amongst older Singaporeans. Employers receive an SEC of up to 8% of each eligible employee's monthly wage. It was initially targeted at workers aged above 55, earning up to $1,700 per month, and was recently enhanced in 2012 to cover those aged above 50, with wages of up to $4,000 per month. Ms Tan Su Shan has asked if the SEC could be enhanced further through an age-based top-up that provides greater support for elder Singaporean Page: 157 workers. We will study this proposal further. However, we note that, currently, employers' CPF contribution rates already get progressively lower as the age of the employee increases.8 The age-based tiering of CPF contribution rates helps to offset the cost of employing older workers, particularly for those above 60. In addition, the SEC should be seen as part of a suite of measures that are in place to facilitate the retention of older workers, including WorkPro, which provides funding for work redesign, and the introduction of legislation that now requires employers to offer re-employment to eligible resident employees who turn 62, up to 65 years old. The labour force participation rate of older residents has been increasing amid the tight labour market and measures to improve their employability. Fifty-six percent of residents aged 60 to 64 were employed in 2012, up from 45% in 2007. Thirty-seven percent of residents aged 65 to 69 were employed in 2012, up from 26% in 2007. Nearly all (98%) private sector local employees who turned 62 in the year ending June 2012 were offered re-employment. We will continue to monitor labour market developments and refine our policies to promote the hiring of older Singaporean workers.”
“To set the parameters for reasonable multi-tasking practices, MOM, National Trades Union Congress (NTUC) and Singapore National Employers Federation (SNEF) have released Tripartite Guidelines on the Job Flexibility Scheme on 24 June 2013. The Guidelines describe how employers should exercise job flexibility responsibly. Specifically, employers should communicate to their employees the additional roles which they are being asked to take on and the corresponding Page: 156 remuneration arrangements. Employers should obtain their employees consent before requiring them to perform additional roles. We also remind employers to comply with existing employment laws, including the obligations on appropriate remuneration for overtime work and caps on work hours. In addition, the Tripartite Guidelines state that employers should fairly remunerate and share productivity gains with employees, by way of additional remuneration or other similar rewards, commensurate with the employees contributions. Employers should abide by the Tripartite Guidelines in implementing job flexibility. In cases where employees believe that their employers have not met the Tripartite Guidelines, they are encouraged to first seek recourse through channels within the employer's business. If not resolved, unionised employees can consult their union for advice. Alternatively, foreign employees can contact the Migrant Workers' Centre for assistance. MOM reserves the right to curb work pass privileges against companies in egregious cases of non-compliance with the guiding principles. Additionally, employees, or any other persons, are encouraged to report contravention of any existing employment laws to MOM.”
“Today, managers and executives can join rank-and-file unions for limited representation. However, some have asked if an additional option could be created for them to join a rank-and-file union for collective representation, if they wish. The proposed change will enrich the landscape and give more options to managers and executives to work with unions and their employers on modalities and arrangements that will better suit their specific needs. The effective implementation of these changes will serve the long-term interests of business, employees and unions in Singapore, as well as strengthen the tripartite partnership. MOM will also be conducting a public consultation exercise to solicit wider public feedback on the proposed amendments to the IR Act. The Tripartite Workgroup will concurrently work out a set of guidelines to guide implementation on the ground so that the new amendments can be implemented smoothly. I would like to thank the Tripartite Workgroup for its work. MOM plans to introduce the Industrial Relations (Amendment) Bill in Parliament next year after the public consultations.”
“A Tripartite Workgroup was formed earlier this year to review the Industrial Relations Act (IR Act), specifically to see how managers and executives can be better represented by trade unions. Managers and executives now form more than 30% of the workforce and their proportion is expected to increase further in the coming years. The Tripartite Workgroup has submitted its recommendations to the Ministry after consultations with employer groups and union leaders. MOM supports the recommendations of the Workgroup and intends to make the necessary legislative changes to effect them. Allow me to now give an outline of the proposed key changes. The Workgroup recommends building on the 2002 amendment to the IR Act to allow rank-and-file unions to represent managers and executives for collective representation. In 2002, limited representation was introduced in the IR Act, to allow rank-and-file unions to represent managers and executives on certain industrial matters on an individual basis. Senior management and certain categories of management will continue to be excluded from collective representation so that management effectiveness is not eroded. Matters, such as promotion, transfer, employment, termination, dismissal and assignment of duties for employees, will continue to remain the prerogative of employers and not form part of collective representation. The Government has noted the concerns from employers that managers and executives are a more heterogeneous group with different needs. Their nature of work and reward systems have also evolved to be relatively Page: 155 individualised. Unions also recognise these trends and will continue to reach out to better understand and serve the needs of managers and executives.”
“The vast majority of CPF members who turn 55 have sufficient savings for housing or have completed their housing loan repayments. By transferring OA savings to the RA, members enjoy higher interest rates of 4% which allows them to accumulate more savings for retirement. Among the cohort of CPF members turning 55 this year, more than 95% either do not require CPF to service housing loans, have savings in excess of half the MS, or have fresh OA contributions from work that they can use for housing. For CPF members who face difficulties with housing loan repayments because of the VL or after the age 55 transfer of OA savings to the RA, we have exercised flexibility where the case merits and have allowed them to use more of their CPF savings for housing.”
“I refer to the queries by Mr Ang Wei Neng and Mr Alex Yam on the CPF Valuation Limit (VL) for housing and the transfer of CPF savings from the Ordinary Account (OA) to the Retirement Account (RA) at age 55. CPF members should set aside sufficient CPF savings for retirement and should not compromise this by overspending on their housing. The VL and the transfer of CPF savings at age 55 to set aside the Minimum Sum (MS) in the RA help to ensure this. The VL is set at the lower of the purchase price or property value at the time of purchase. It is not adjusted based on the current value of the property, which could fluctuate depending on the property cycle. Capping CPF usage for housing minimises the risk of CPF members not being able to recover the full amount of CPF withdrawn for his property, especially if there is a property downturn. CPF members can use their CPF savings above the VL, provided they have set aside at least half of their MS for retirement. The VL also does not apply to new flats purchased directly from the HDB and financed with a HDB loan. Today, the number of CPF members who have reached their VL and must use cash to service their housing loans is small – at less than half a percent of members who are using CPF savings for their housing loans. Of the households with HDB loan arrears of three months or more, less than 1% are affected by Page: 153 the VL. When a CPF member turns 55, his savings in his CPF OA and Special Account (SA) are used to set aside the MS in his RA. Only RA savings above half the MS can be used for housing. This ensures members set aside enough cash savings to meet their retirement needs. Mr Yam has proposed a tiered approach for the transfer of OA savings to RA. This is unnecessary.”
“Since its formation in 2007, the Tripartite Alliance for Fair Employment Practices (TAFEP) has so far received four complaints of perceived discrimination against workers with a mental health condition out of a total of around 1,000 complaints received. We encourage any person who encounters employment discrimination to approach TAFEP for advice and assistance. Where TAFEP believes that there is a basis to the complaint, TAFEP will look into the issue and, if necessary, advise the employer to make adjustments to its employment practices to be in line with the principles of fair employment. Employers have been receptive to such advice and made the required adjustments to their practices, such as their recruitment methods. Page: 152”
“Workers can file salary claims with the Commissioner for Labour. The Commissioner will inquire into the case and determine the amount that the employer has to pay if the claim is valid. The Commissioner for Labour has inquired into a total of some 3,800 salary claims between 2010 and 2012. In about three-quarters of these cases, the employers made payment to their workers. In the remaining one quarter, the employers did not pay up. Workers in such a situation can enforce the payment by way of writ of seizure and sale through the Subordinate Courts. This process does not require them to engage a lawyer. MOM officers will facilitate the process by advising workers on the procedures involved, and helping them prepare the necessary documents. However, most of these defaulting employers were small companies in financial difficulty or which had ceased operations. Let me also stress that every worker has the right to be paid in full and on time. MOM has tightened our processes and we will send a clear signal to every employer that not paying their workers' salaries is unacceptable and doing so will attract a consequence, including prosecution actions. Later this year, we Page: 150 will be enhancing the penalties under the Employment Act for errant employers who fail to pay workers' salaries.”
“We currently distribute employer and worker-targeted "WorkRight" guidebooks (available in our four official languages) through self- Page: 149 help groups, SNEF, NTUC, training providers and industry partners. Members of Parliament would have received these multi-lingual worker guidebooks that you could give out to residents. The proposed amendment to the Employment Act requiring employers to issue itemised pay slips to their employees will also be a boost to raising national awareness and compliance. On the enforcement front, we have been stepping up the number of inspections. We are concurrently reviewing the penalties under the CPF Act and Employment Act to ensure that they have the required deterrent effect on recalcitrant employers.”
“From January 2010 to July 2013, a total of 61 employers, or an average of 17 employers per year, were found to have deducted monies from their employee's salaries for the employer's CPF contributions. These employers are spread out across various industries, with no specific profile due to the low volume of violations. Some of the reasons for violations include ignorance of CPF rules, or employers who erroneously made such deductions for their foreign employees who obtained PR status. Upon our investigation and demand for rectification by the CPF Board, a total of about $240,000 in excess deductions were refunded by employers to their employees affected. Under section 7(5) of the CPF Act, it is an offence for employers to make excessive deduction of CPF contributions from their employees. For the 61 employers found to have made excessive deduction of CPF contributions from their employees, all of them paid back the excess deductions to their employees. Any person convicted of such an offence shall be liable to a fine not exceeding $2,500 and, in the case of a second or subsequent conviction, to a fine not exceeding $10,000 as provided under section 61 of the CPF Act. CPF Board treats excessive deductions and other non-compliance of the CPF Act seriously. Under the "WorkRight" programme jointly launched by MOM and CPF Board, we have stepped up compliance with the CPF Act, as well as the Employment Act, through a two-prong approach – education and enforcement. Through education, we are raising awareness among employers and employees about their obligations and rights under the CPF Act and Employment Act.”
“One of the more popular efforts organised by the taskforce is the Industry Seminar Series on Crane Safety. Lessons learnt from past incidents and best practices will also be shared at upcoming events that had been scheduled earlier on in the year, such as the Crane Safety Symposium and the Crane Carnival, which would take place in late-October and mid-November respectively. These efforts have yielded modest improvements in Crane Safety for the construction industry, with 12 dangerous occurrences reported in 2012, down from 22 in 2010. This year, two crane-related accidents have claimed three lives compared to five crane-related fatalities in 2012. But this is still, three lives too many. Our thoughts and condolences go out to the families of these workers. As construction activities continue, employers must do their part to ensure workers are trained; guidelines and regulations are closely adhered to, so that risks are mitigated and workers not placed in harm's way. All equipment, must Page: 140 also be maintained to the highest standards, and inspections meticulously carried out. We will continue to focus our efforts to enhance work safety involving cranes, in all industries.”