Workplace & Employment

Employers Required to Notify Salary Reduction Measures

On 29 May 2020, the Employment (Returns on Salary Reduction Measures) Notification 2020 ("Notification") came into effect. The Notification requires any employer with more than 10 employees who intends to reduce operating expenses by implementing measures that result in the reduction of salary of any employee to submit a return to the Commissioner for Labour in a prescribed form within the prescribed period.

The Ministry of Manpower has earlier issued an advisory titled "Advisory on salary and leave arrangements during Circuit Breaker" that among other things, set out notification requirements for cost-saving measures with salary reductions during the circuit breaker from 7 April 2020 to 1 June 2020. The Notification applies to employers in Singapore with effect from 29 May 2020.

This Update outlines the requirements in the Notification.