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MOM proposes small claims tribunal to resolve employment disputes

SINGAPORE — The Manpower Ministry is proposing the establishment of a Small Claims Employment Tribunal, to provide a quick and affordable way for all workers to resolve employment disputes with their employers.

Ministry of Manpower. TODAY file photo

Ministry of Manpower. TODAY file photo

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SINGAPORE — The Manpower Ministry is proposing the establishment of a Small Claims Employment Tribunal, to provide a quick and affordable way for all workers to resolve employment disputes with their employers.

And to help prevent misunderstandings at the workplace and facilitate the resolution of disputes, the ministry also wants to mandate the provision of key employment terms — such as salary, working hours, and duties and responsibilities — in written contracts in two years time, together with the provision of itemised payslips.

Speaking during the Ministry of Manpower’s (MOM) workplan seminar this morning (April 24), Acting Manpower Minister Tan Chuan-Jin said that his ministry will introduce a set of tripartite guidelines by the second half of the year, to help employers provide key employment terms to their employees in writing, as a first step.

Allowing the two years before mandating the provision of written key employment terms would allow time for businesses to adjust, he said.

Currently, about 90 per cent of employers already provide employment contracts in writing, even though the Employment Act does not mandate it.

The proposed Small Claims Employment Tribunal, meanwhile, will address disputes over salary-related terms and conditions in employment contacts, for workers not covered under the Employment Act — managers and executives earning above S$4,500.

For employees covered under the Act, MOM’s proposal is for the Tribunal to take over the role of the Commissioner of Labour to handle disputes on statutory-related disputes under the Act, and other salary-related contractual terms and conditions — such as commissions, bonuses or annual wage supplement payments.

Claims at the Tribunal would be subject to a limit on the amount of payment that be awarded, Mr Tan said, and those seeking higher payouts would have to seek redress at the civil courts.

Similar to the mechanism of the Small Claims Tribunal, parties which disagree with the decision or order of the Tribunal may appeal to the High Court.

Mr Tan said MOM will continue to consult and engage stakeholders on the Tribunal proposal in the coming months.

Currently, employees covered by the Employment Act can bring salary-related claims to the Commissioner of Labour. Those not covered can only settle employment disputes with their employers through the civil courts, which can be costly and protracted.

Apart from the proposed Tribunal, MOM is also working with tripartite partners to enhance the tripartite mediation framework for union members in non-unionised companies, and further details will be announced when ready.

In his speech this morning, Mr Tan also laid out three key areas his ministry will continue to work on in the year ahead — making workplaces better and safer to provide more quality jobs for all Singaporeans, ensuring Singaporeans achieve sustainable increase in real incomes, and achieving inclusive growth and retirement adequacy for Singaporeans.

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