Workers’ Rights Act Employment Rights Act

• The Act is applicable to workers drawing a monthly basic wage not

exceeding Rs50,000. • The Act is applicable to
• However, the following sections of the Act will also apply to workers drawing workers drawing a
a monthly basic wage exceeding Rs50,000: monthly basic wage
 S5 – Discrimination in employment and occupation not exceeding Rs30,00.
 S26 – Equal remuneration for work of equal value
• Provisions on
 S32 – Payment of remuneration in other specific circumstances
 S33 – Payment of additional remuneration
Restrictions of
 S34 – Restrictions of deductions
deductions and End of
 S49 – Juror’s leave
year Bonus were not
 S50 – Leave to participate in international sport events
applicable to workers
 S52 – Maternity Leave and other Benefits drawing a monthly
 S53 – Paternity Leave salary not exceeding
 S54 – End of Year Bonus Rs30, 000
 Part VI – Termination of Agreement and Reduction of Workforce
 Part VII – Workfare Programme Fund
 Part VIII – Portable Retirement Gratuity Fund, applicable up to a
monthly basic wage up to Rs200,000
 Part XI – Violence at Work
Workers’ Rights Act Employment Rights Act
Section 3(1): subject to any provision to Same Provision
the contrary in any other enactment, the
Act shall apply to every agreement

ERiA v. ROs
WRA v. ROs
The ERiA is not applicable in
• The WRA will not be applicable in
respect of issues which are
respect of issues which are provided
provided in the ROs
in the ROs.
• ROs will, however, be amended to
provide only issues which are specific
to the sector.
• 33 in force
• Latest one on ICT and related sectors
• Harmonisation with Workers’ Rights Act
• Working Time, Shift work, Vacation leave
• Industry or sector specific provisions
WRA & ROs v. Collective agreement

A collective agreement may contain provisions inconsistent with:

(i) Any ROs, except reducing the prescribed wages;
(ii) The provisions of the WRA, except with:
 S 5 Discrimination in employment
 S 8 & 9 Employment of child of children and young persons
 S 26 Equal remuneration for work of equal value
 S 34 Restriction on deductions
 S 52 & 53 Maternity benefits and Paternity leave
 S 55 Death Grant
 Part VI, VII, VIII, and XI (Termination of agreement, Workfare
Programme, PRGF and Violence at work)
Workers’ Rights Act Employment Rights Act
• Working week – 45 hours (including
• Normal working day – 8
watchperson)
hrs for any worker, other
• 5 days’ week – 9 hours per day than a watchperson)
• 6 days’ week – 8 hours on 5 days of the week and • A normal day’s work of a
5 hours on any day of the week worker may begin on any
• A normal working week of a worker may begin day of the week, whether
or not on a public holiday
on any day of the week

• Overtime at rate of 1.5 after normal day’s work • Overtime at rate of 1.5
in a day after 90 hours’ work in a
fortnight
• Overtime at rate of 2 for work performed during
• Overtime at rate of 2 for
normal working hours on Public Holidays work performed on Public
• Overtime at rate of 3 for work performed after Holidays
normal working hours on Public Holidays
Workers’ Rights Act Employment Right s Act
• An employer shall not, without a worker’s
• No Provision
consent, require a worker to work on shift
work –
 For more than 8 hours in a day;
 At night on more than 5 consecutive
nights, except in such sector or industry as
may be prescribed.
• Night shift allowance – 15% of basic wage (not
applicable to workers working at night only)
Note: Specific provisions regarding shift work will
be provided in some Remuneration Orders.
Workers’ Rights Act Employment Rights Act
• Where an employer requests a • No provision
worker to perform piece/task
work, the worker shall be
deemed to have performed a
normal day’s/ week’s work
when he completes the task
allotted to him in fewer
hours/days.
Workers’ Rights Act Employment Rights Act
• An employer may request a worker • No provision
to work on flexitime and the worker
may accede to the request.
• A worker may request to work on
flexitime to care for his child under
the age of 4 and the employer shall
grant the request unless there are
reasonable business grounds
(inability to re-organise work or
detrimental impact on quality or
performance.
Workers’ Rights Act Employment Rights Act
• A worker, other than a migrant worker, shall
• A worker, other than
not be employed in a position of permanent
a migrant worker,
nature under a contract of fixed duration.
employed in a
• Fixed term agreement will only be possible in position of
respect of activity which is of a temporary, permanent nature
seasonal or project related. under a determinate
• On the commencement of the Act, a worker agreement of more
employed on a fixed term agreement in a than 24 months – be
position of a permanent nature for more than deemed to be of
12 months will be deemed to be under an indeterminate
indeterminate agreement. duration
• Not applicable to workers drawing more than
Rs50,000 per month.
• Working week: 45 hours
• Working week watchperson: 48 hours
• OT: +45 hrs @1.5
• OT PH: First 8 hrs @2.0 , +8 hrs @3.0
• Shift work: 6 days weekly, 8 hrs daily
• Allowance @15% for work between 10.00 pm to 6.00 am
Workers’ Rights Act Employment Rights Act
After 12 months’ continuous employment:
• Annual Leave – (20 + 2
• Annual Leave – (20 + 2 Additional Leaves) days
Additional Leaves) days
• Refund of Annual Leave
• Refund of Annual Leave
• Sick Leave – 15 days
• Sick Leave – 15 days
• Accumulated Bank Sick Leave – maximum of 90 days
• Accumulated Bank Sick
• Special Leave
Leave – maximum of 90 days
 6 days on the marriage of a worker
• After being in continuous
 3 days on the marriage of a worker’s son or daughter
employment of 6
 3 days on death of a worker’s spouse, child, father, mother,
consecutive months,
brother or sister
without any absence, - 1
• After being in continuous employment of 6 consecutive AL/1 SL for each subsequent
months, without any absence, - 1 AL/1 SL for each subsequent
months
months
Irrespective of length of service:
• Juror’s Leave
• Leave to participate in international sport events
• Leave to attend Court
Workers’ Rights Act Employment Rights Act
• 14 weeks’ maternity leave on full pay on • No provision on
confinement adoption leave
• A maternity allowance of Rs3,000 on
confinement after 12 months’ continuous
employment
• 14 weeks leave on full pay for still-born child
• 14 weeks’ adoption leave on full pay after 12
months’ continuous employment for
adopting a child under 12 months.
• 3 weeks’ leave on full pay on miscarriage
• Two breaks of half hour or a break of one
hour for nursing unweaned child
• After each consecutive period of 5 years – 30 days
• The period of 5 consecutive years will start as the date of coming into
operation of the Act
• The provision of vacation leave under the Remuneration Orders will continue
to prevail
• Specific provisions will be made in ROs that –
 Where a worker would have been eligible to take vacation leave under the
repealed RO within a period of less than 5 years prior to the coming into
operation of the new RO, the worker shall upon completion of the
prescribed period in the repealed Regulations be entitled to the vacation
leave of 30 days.
 Workers to give 3 months’ notice before taking the leave which shall not be
less for a period of 6 consecutive days.
 Employer to refund in case of disagreement when the leave is to be taken.
Workers’ Rights Act Employment Rights Act
• Payslip to be issued to every worker • Payslip to be issued
indicating the contribution made by the to every worker
employer to the PRGF
• An employer may be liable to pay
interest at a rate not exceeding 12% for
non-payment or short payment of
remuneration.
• On failure to pay any remuneration due
to a worker, a Protective Order may be
issued against an employer and any bank
or other financial institution holding
funds on behalf of the employer.
Workers’ Rights Act Employment Rights Act
• Workers still in employment as at 31 Dec -
• Workers still in
entitled to an EYB equivalent to 1/12th of
employment as at 31
earnings. Dec – entitled to an EYB
• Payment of EYB (1/12th of earnings) to a worker equivalent to 1/12 of
on termination of employment (misconduct, earnings.
poor performance, economic) • Commission not
• Payment of EYB (1/12th earnings) on resignation included in the
provided the worker has been in continuous computation of
earnings.
employment for at least 8 months in that year.
• Not applicable to
• “earnings” is defined as basic wage + any sum of workers drawing a
money, including commission, paid to a worker monthly salary
relating to productivity exceeding Rs30,000.
• Applicable to workers drawing monthly basic
wage exceeding Rs50,000.
Workers’ Rights Act Employment Rights Act
• A job contractor and the principal, for whom • A job contractor
the job contractor has recruited or and the employer,
employed a worker, shall be jointly and
severally liable for the payment of the for whom the job
remuneration of the worker and for the contractor has
conditions of employment of the worker, recruited a
including their safety, health and welfare. worker, shall be
• Where an employer has recourse to the jointly and
services of a job contractor, the job
contractor shall ensure that the severally liable for
remuneration of any worker employed by the payment of
him shall not be less favourable than the the remuneration
remuneration of a worker employed by the of the worker.
principal employer and performing work of
equal value.
 Workers’ Rights Act Employment Rights Act
• Any agreement in resolution of a • No provision
dispute concerning termination of
employment or non-payment or
short payment of wages will only
be valid if vetted by a qualified
law practitioner (not party to the
agreement for the employer), an
officer or a member of a
registered trade union or an
officer of the Ministry of Labour.
Workers’ Rights Act
• A notice period of at least
30 days
• An agreement cannot
provide for a notice period
of termination of
employment which is less
than 30 days.
Employment Rights Act
• A notice of 30 days,
except where the contract
of employment provides
for either a longer or
shorter notice.
Workers’ Rights Act Employment Rights Act
• Delay for notification to the worker of the
charge made against him relating to • Delay for notification to the
misconduct – within 10 days from the worker of the charge made
completion of the investigation against him relating to
• On request, the employer shall provide such misconduct – within 10
information and documents relevant to the
charge against the worker. days from date the
• On request in writing, the employer has to employer becomes aware
provide a copy of the minutes of proceedings of the charge
of the disciplinary meeting
• Completion of disciplinary hearing – within 30
days except extension agreed by both parties
• Postponement by either party will be on full
pay
Workers’ Rights Act Employment Rights Act
Employer with a minimum of 15 workers or with an annual
turnover of at least Rs25 m – Employer with more than 20
• Prior consultation with recognised trade union or trade workers –
union having representational status or workers’
representatives elected by workers – may agree on • Notify the Ministry of
payment of compensation Labour 30 days before
• In the absence of an agreement or negotiation, prior reduction
authorisation of the newly set Redundancy Board need to
be sought • Prior consultation with
• The Board shall complete its proceedings within 30 days recognised trade union to
from the date of notification by the employer or such explore possibility to
longer period agreed by parties.
• The Board may order reinstatement with payment of avoid reduction
remuneration from date of the termination of the worker • Payment of recycling Fee
to the date of his reinstatement or payment of severance
allowance at the rate of 3 months’ remuneration per year for years of service
of service.
• Where the Board has not completed its proceedings
before 30 days or such longer period as may be agreed, an
employer may proceed with the reduction of workforce.
• To provide for the payment of a gratuity where –
(a) a worker retires on or after reaching 60;
(b) a worker retires before 60 –
(i) in accordance with the provisions of a RO;
(ii) on medical grounds certified by a GMO;
(iii) on grounds of permanent incapacity to perform his
work following injury sustained at work.
(c) an employer retires a worker on or after reaching 65.
(d) a worker dies (payment to his legal heirs)
• All workers of the private sector, except –
 A worker who is already covered by a private pension fund
(the employer to submit a certificate by FSC)
 A migrant worker or a non-citizen
 A worker drawing more than Rs200,000 as basic wages per
month.

• The Fund is also applicable to -

(a) a self-employed person, (i.e) a person who works for
himself and does not employ any worker;
(b) An atypical worker (homeworker, online platform worker,
etc)
• Monthly contribution on a prescribed rate on remuneration
drawn by every worker.
• “Remuneration” is defined as meaning the basic wage +
productivity bonus +attendance bonus +overtime payment.
• The contributions will be credited in the individual worker of
each worker in the Fund.
• An employer is jointly and severally liable with a job
contractor at his services to pay contributions to the PRGF in
respect of workers employed by the job contractor.
• Contributions for Past services
Contributions from date of entry with last employer up to the date of
coming into operation of the PRGF.
• An employer will have the option to pay contributions for past services
either –
 on termination of employment (any reason, including misconduct),
retirement on or after reaching the age of 60 or when a worker dies
on the terminal remuneration; or
 At any time before the occurrence of the above mentioned events,
on the last monthly salary at the commencement of the Act.
• The contributions for past services to be paid to the PRGF in case of
termination of employment and to the worker/heirs of the worker in
case of retirement/death of the worker
 Feb Dec
Jan
2020 2025
2020
(DOE) (Event)

• Dismissal
• Retirement /
Contributions Death
to PRGF • Resignation
+
Return on
Investment
 Jan Dec
Jan
2015 2025
2020
(DOE) (Event)

• Dismissal: PS –
Contributions PRGF
Past Services to PRGF • Retirement /
• Dismissal: PRGF + Death
• Retirement / Return on • Resignation
Death: Workers Investment
• Resignation: Nil
• Shortfall of contributions = lump sum of 15 days’ remuneration per
year of service computed on the final remuneration less accumulated
fund (contributions + return on investments).
• Remuneration includes basic wages, productivity bonus, attendance
bonus, overtime, commission (not exceeding Rs1.2 m), end of year
bonus and any other regular payment.
• Any surplus of contributions may be –
(i) Used by the employer to make up for any unpaid contributions; or
(ii) Used by the employer to pay contributions for past services of his
other workers.
• An employer will have to pay a shortfall of contributions in the
following circumstances –
Employment History of a worker
Employer A Employer B (up to date) Date of coming into operation of PRGF
Date of Entry January 2010 January 2015 January 2020
Events – Dec 2030 Contribution for past services Shortfall of Contributions

Period Parties to Period Parties to

whom whom
payment to payment to
be effected be effected

Termination of Jan 2015 to Dec MRA /PRGF 15 days’ final PRGF

employment by 2019 remuneration x no. of
Employer (any (contribution to years of service for
cause) be made on period 2015 to 2030 less
monthly Accumulated Fund for
remuneration) period Jan 2015 to Dec
2030
Events – Dec 2030 Contribution for past services Shortfall of Contributions
Period Parties to Period Parties to
whom whom
payment to payment to
be effected be effected
Retirement on or Jan 2015 to Dec Worker 15 days’ final remuneration Worker
after attaining age 2019 x no. of years of service for
of 60 (contribution to period 2015 to 2030 less
be made on Accumulated Fund for
monthly period Jan 2020 to Dec
remuneration) 2030
Death of the Jan 2015 to Dec Heirs of the 15 days’ final remuneration Heirs of
worker 2019 worker x no. of years of service for the worker
(contribution to period 2015 to 2030 less
be made on Accumulated Fund for
monthly period Jan 2020 to Dec
remuneration) 2030
Events – Dec 2030 Contribution for past Shortfall of Contributions
services
Period Parties to Period Parties to
whom whom
payment to payment to
be effected be effected
Resignation NIL - 15 days’ final remuneration x PRGF
no. of years of service for
period Jan 2020 to 2030 less
Accumulated Fund for period
Jan 2020 to December 2030
Retirement on NIL - 15 days’ final remuneration x Worker
Medical no. of years of service for
Grounds/Following period 2015 to 2030/12 less
Injury at work Accumulated Fund for period
Jan 2020 to Dec 2030
Events – Dec 2030 Contribution for past Shortfall of Contributions
services
Period Parties to Period Parties to
whom whom
payment to payment to
be effected be effected
Retirement at NIL - 15 days’ final remuneration x no. of Worker
request of months period 2015 to 2030 less
Employer Accumulated Fund for period Jan
2020 to Dec 2030
Retirement in NIL - Compensation provided under Worker
accordance with relevant enactment less
other accordance Accumulated Fund for period Jan
2020 to Dec 2030
Termination of Nil 15 days’ final remuneration x no. of PRGF
employment by years for period Jan 2020 to
mutual agreement 2030/12 less Accumulated Fund
• Monthly contributions
Not later than on the 20th of the following month.
• Contributions for past services

Not later than one month after termination of employment/retirement/

death of a worker.
• Shortfall of contributions
(i) Within one month of termination of employment / retirement / death
of a worker, employer to submit particulars of employment to PRGF;
(ii) Within one month employer will be informed of the amount of
shortfall of contributions;
(iii) Employer shall, thereafter, not later than one month pay the shortfall.
• Surcharge of 5% for every month contributions remained unpaid
• Monthly return of contributions paid to
MRA not later than 20th of the following
month.
• Annual return by 15 July every year to
MRA
• Workers whose retirement benefits are payable in
accordance with a private pension scheme.
• Workers drawing a monthly basic wage or salary of
more than Rs200,000 and whose retirement
benefits are not payable under any private pension
scheme.
• A migrant worker or a non-citizen
• Payment of a gratuity where –
(a) a worker retires on or after reaching 60;
(b) a worker retires before 60 –
(i) in accordance with the provisions of a RO;
(ii) on medical grounds certified by a GMO;
(iii) on grounds of permanent incapacity to perform
his work following injury sustained at work.
(C) an employer retires a worker on or after reaching 65.
(d) a worker dies (payment to his legal heirs)
• 15 days’ remuneration per year of service + pro-rata
• “remuneration” - emoluments in cash or in kind earned
and includes any sum paid to cover expenses incurred in
relation to the special nature of the worker’s work.
• Best calculated over a period of 12 months or
remuneration for last working day, whichever is the
higher.
• A month = 26 days
• Interest at the rate not exceeding 12% on any unpaid
gratuity.
• Half of amount of gratuity from any fund,
• 5 times the amount of any annual pension from
any fund,
computed by reference only to the employer’s
share of contributions.
• Any other gratuity granted by the employer.
• 10 times the amount of any other annual pension
granted by the employer.