For employers who want to be exempted from Employment Act requirements for overtime, rest day and public holiday pay.
At a glance
Flexible work schedule allow you to optimise your costs and manpower resources, and avoid or minimise retrenchment of excess employees during a downturn.
Your employees are assured of a stable monthly income and greater job security, although they may face some loss of overtime pay.
Exemptions under flexible work schedule
Under flexible work schedule, you can be exempted from paying the following salary rates to employees for overtime, rest day and public holiday work:
- 1.5 times the hourly rate of pay for overtime work.
- 2 days’ salary for work done on a rest day at the employer’s request.
- An extra day’s salary for work on a public holiday.
If approved, you can:
- Compute weekly working hours over a longer period for overtime pay.
- Be exempted or pay a different rate from the prescribed rate for overtime, rest day or public holiday work.
How long it lasts
Flexible work schedule will be approved for a maximum of 2 years at a time.
You must meet the following requirements to qualify a flexible work schedule:
- Justify your need through a proposal for implementing flexible work schedule.
- Ensure that employees should continue to receive their monthly basic salary when they work less than the contractual hours.
- Have a good track record in safety and health, and ensure that employees will not be subjected to hazardous work environment.
- You must observe the maximum 12 hours daily working limit and monthly 72 hours overtime limit, except in special circumstances.
- Get consent from:
- Unions, if unionised.
- More than 50% of affected employees for non-unionised companies.
- Put in place profit sharing or incentive scheme for employees who participate in the flexible working schedule.
You will need the following information to apply for a flexible work schedule:
- Particulars of company (e.g. ACRA registration number, contact number of person in charge of the application or scheme).
- Reason why flexible work schedule is needed.
- Date of implementation of flexible work schedule.
- Name of union, if unionised.
- Number, names and nature of work of affected employees.
- Written agreement or consent from the unions or majority of affected employees (in the case of non-unionised companies). The agreement should be signed by both parties.
- Detailed proposal of scheme, including information such as:
- Percentage of overtime cost over its total manpower cost.
- Average overtime earnings over a period of time (e.g. 6 months or 1 year).
- Contractual working hours and days per week.
- Monthly, two monthly or quarterly roster.
- Date where payment for overtime work would be made to the employees.
- Opt out procedures or forms.
How to apply
- Prepare the documents required.
- Log in to apply for flexible work schedule.