(SINGAPORE) Confidential staff - accounts assistants, human resource clerks and secretaries - once excluded from coverage under the Employment Act are to be included under proposed changes to update it.

Junior managers and executives earning a monthly basic salary of $2,500 or less will also be able to turn to the Labour Court for salary claims if Parliament gives the green light to the changes, which include making an employer's failure to pay salary an offence. The changes are expected to be tabled in Parliament next month.

Last amended in 1995, the Employment Act currently covers about 1.4 million workers. It provides them with basic employment benefits such as salary protection, minimum employment terms and dispute resolution. Managers, executives and confidential staff, as well as special categories of staff, are excluded from coverage.

A 'consulting paper' put out by the Ministry of Manpower (MOM) to seek public feedback on the proposed changes says there have been significant changes in the labour market in the past 13 years. Employment in services has expanded at the expense of manufacturing and construction; the proportion of professionals, managers, executives and technicians in the workforce has increased; and the growth of outsourcing has led to shorter employment and the rise of contract workers.

'In updating the Employment Act, it is necessary to take a balanced approach between employment protection for workers and the need to maintain Singapore's labour market flexibility,' the paper says.

The proposed amendments cover four areas: revising the coverage of the Act to keep pace with changes in the workforce profile; reviewing employment standards and perks, especially for vulnerable workers; boosting penalties and enforcement powers, and streamlining processes to facilitate compliance with employment standards; and rationalising existing provisions and junking outdated provisions.

MOM has discussed the changes with the National Trades Union Congress (NTUC) and the Singapore National Employers' Federation (SNEF). Both said yesterday the changes are 'timely' and appropriate, singling out the proposal to raise the monthly salary ceiling for non-workmen staff to $2,000. 'The salary ceiling of $1,600 was set in 1995,' said SNEF executive director Koh Juan Kiat. 'Since then, the wages of workers have risen steadily. Raising the ceiling to $2,000 will cover over 50 per cent of the workforce.'

NTUC said in a statement on the proposed changes that raising the salary ceiling will give more employees entitlement to overtime, rest day pay and public holiday pay.

This is because one of the proposed changes is to extend paid public holidays and sick leave, which are well-established industry norms, to all workers covered under the Act. These leave entitlements are currently restricted to unskilled workers covered under Part IV of the Act.

SNEF's Mr Koh said employers also face constraints under the definition of part-time workers in the current Act, which defines them as those who work less than 30 hours a week.

'We therefore welcome the raising of the part-time hours to 35 as it will give a fresh impetus to companies to create part-time work to attract more women back into the workforce,' he said.

NTUC said it is pleased that MOM has accepted its suggestion to remove the exclusion of confidential staff from the Act. 'This blanket exclusion is no longer relevant or beneficial,' it said. 'Its removal would entitle them (the confidential staff) to basic employment benefits.'

According to MOM's consultation paper, confidential staff were excluded because their access to company information could lead to conflicts of interest and give unions an unfair bargaining edge.

But corporate practices have changed, it says. 'Highly sensitive company policies are now typically handled by senior management.'

Members of the public can give feedback on MOM's website or email MOM at MOM_WPSD_EA@ mom.gov.sg (subject heading: Public Consultation on Employment Act).