Employers who cannot resume operations post-Circuit Breaker will continue to receive 75% wage support through the Jobs Support Scheme.
If there’s a need to extend the cost-saving measures, employers should engage and mutually agree with unions and employees on the appropriate salary and leave arrangements, taking reference from the updated advisory for salary and leave arrangements.
Employers with at least 10 employees are also reminded to notify MOM if the cost-saving measures result in more than 25% reduction in the gross monthly salary for local employees or more than 25% reduction in basic monthly salary for foreign employees.
Employers whose business had been severely affected and had implemented cost-saving measures earlier should review their measures taking into consideration the additional support provided by the Government.
Employers and employees should discuss and mutually agree on an arrangement to support the company’s survival and ensure that jobs are preserved.
Your company should use the enhanced Government support to pay your employees baseline salaries during this period.
The Government has provided substantial wage support through the Job Support Scheme (JSS) to help employers retain and pay employees.
Employers who are unable to resume operations should continue paying baseline salaries to employees. The baseline salary may vary across employers due to different financial position and business prospects.
For example, an employer who continues to be financially healthy may give a non-working employee salary + CPF contribution equivalent to the enhanced JSS payout for May (i.e. 75% of one month of wage).
Employers should discuss with unions and employees and come to an agreement on the salary and work arrangements, with special consideration for lower wage employees.
The Jobs Support Scheme (JSS) provides wage support to employers, helping them retain local employees during this period of economic uncertainty.
The JSS payment goes to the employer based on the eligible employees and the employer has the discretion on how best to use the JSS payout to support their entire workforce, including those who have less than 3 months in service.
If the terms and conditions of an employment contract need to be changed, both employers and employees should negotiate and try to reach an acceptable agreement, taking into consideration business needs and the employee’s concerns.
If no agreement can be reached, the initial contractual terms and conditions must remain unchanged but either party can serve notice and end the employment relationship.
Employers cannot make changes to the employment terms and conditions without the employee’s consent.
To prevent misunderstandings or disputes, a written agreement with the new terms and conditions clearly stated, whether temporary or permanent, should be signed, where possible (e.g. electronic signature).
Employees would not be eligible to apply for paid sick leave if they fall sick during the day they are on no-pay leave, or any other non-working day, e.g. public holiday or annual leave.
For example, the company implemented 1 day no-pay leave each week, and the employee had agreed to be on no-pay leave for all Mondays. If the employee was given two days of sick leave on a Monday, the employee is counted to having taken 1 day of paid sick leave for Tuesday.
In addition, as the employee had agreed to the cost-saving measures to support the company, as an employer, you are encouraged to exercise compassion and reimburse medical consultation fees, if any.