WWLegal.com :: MOM Proposes Changes To Certain Acts To Strengthen Workforce Practices

MOM Proposes Changes To Certain Acts To Strengthen Workforce Practices
Posted on Friday, March 09, 2007 - 08:00 AM

The Ministry of Manpower (MOM) is proposing several changes to legislation to strengthen workforce practices in Singapore. These energed during the Committee of Supplies Debate (ie Budget Debate) in Parliament on 7 and 8 March 2007 concerning MOM.

Employment of Foreign Workers Act (EFWA)

MOM will strengthen the framework governing the well-being of foreign workers and to guard against potential abuse by errant employers. The Employment of Foreign Workers Act (EFWA) will be amended to stiffen penalties for selected offences and introduce new offences. The powers of MOM's Employment Inspectors will also be strengthened so that they can effectively enforce the law.

MOM will require employers, at the point of application of work permits, to provide information on where they intend to house their foreign workers. MOM will not approve the applications if the accommodations do not meet specified conditions. Implementation details will be announced at a later date.

Workmen's Compensation Act (WCA)

MOM is reviewing the Workmen's Compensation Act to ensure that it continues to safeguard the interests of injured workers, both local and foreign, while at the same time deter and hold accountable irresponsible and errant employers or workers. MOM will examine the Act's coverage, the compensation formula and the compensation levels. MOM also plans to enhance MOM's enforcement powers to ensure that workers receive their due compensation promptly while at the same time protect the interests of employers from fraudulent claims.

CPF & Divorces Wives

Issue of divorced wives who get very little from the sale proceeds of the matrimonial property because the husband is required to set aside the Minimum Sum is to be addressed. In the division of matrimonial assets, there is currently no discretion to allow some portion or all of the CPF monies used to go into the other spouse's account. This has created practical difficulties and in some cases, the wife has had to sell the property even if husband is willing to transfer the house to the wife. MOM has studied this problem and later this year, will make changes to the CPF Act to bring about a smooth and equitable distribution of CPF monies arising from division of matrimonial assets to either member's account. These changes will allow an immediate transfer of CPF monies from a Member to the ex-spouse's CPF account.

To explain how things will change, suppose the sale proceeds of the matrimonial property is $100,000. Under current rules, all $100,000 will go to the member's CPF account, even if the Court had awarded the ex-spouse half the proceeds, or $50,000. With the change in rules, the courts can now issue an order to transfer $50,000 from the $100,000 refunded to the member's CPF account to the ex-spouse's CPF account.

MOM will also be making amendments to facilitate the immediate transfer of property to the ex-spouse by allowing CPF monies embedded in a property to be transferred, provided that a charge is placed to secure the refund of CPF monies in the event of a sale. This refund will go either into the CPF member's account or the ex-spouse's CPF account. In other words, if the member had used his CPF for the property, but the court had ordered that the ownership of the property be transferred to the ex-spouse, CPF will no longer require the member to refund his CPF in cash before a transfer can take place. Instead, a charge will be created in the ex-spouse's interest so that she will need to refund the same amount into her CPF account should she sell the property later.

CPF will also address another practice not quite in line with current Minimum Sum policy. When members sell their properties which they have used CPF money to purchase, they are required to return the CPF that has been utilised together with the accrued interest from the sale process and to secure the payment of the Minimum Sum – this is existing policy and common knowledge. But while CPF have enforced this policy for all those below the age of 55, the CPF Board has not enforced this rule uniformly in the past for those above 55 years old. Specifically, CPF have only recovered the property pledge from them and not the shortfalls for the cash portion of the Minimum Sum. CPF Board will be applying the rule uniformly. However, to give prospective home sellers who are above 55 yrs old adequate notice, CPF will enforce this from 1 Jan 2009.

Extension of the Workplace Safety and Health Act (WSH Act)

While MOM continues to raise the workplace safety and health performance in construction sites, shipyards and general factories, the intention is to ensure that workers in all workplaces are protected. As announced in Parliament in 2006 when the WSH Act was passed, MOM will cover all workplaces under the Act in three to five years. MOM will do so in phases.

This approach will ensure a sustainable build up, with industry ownership. MOM will roll-out the next phase of workplaces to be included under the WSH Act on 1 March 2008. These will be sectors that either have higher accident rates or where the potential consequences of any accident can be serious.

The six selected sectors are:
a. Services allied to the transport of goods, such as logistics, freight forwarding and cargo surveying services;
b. Landscape care and maintenance service activities, such as grass-cutting;
c. Water supply, sewerage and waste management, such as refuse disposal;
d. Hotels and restaurants;
e. Healthcare activities such as hospitals; and
f. Veterinary activities.

This will allow a reasonable timeframe for the affected companies to build up their capabilities to comply with the Act. Stakeholders in these sectors have been consulted and MOM will continue to work with them to address their concerns in the coming months, and also offer compliance assistance to help them. Specifically, MOM will extend the Risk Management Assistance Fund to small and medium enterprises, or SMEs, in these six sectors, to help them build up capabilities to conduct comprehensive risk assessments.

News