SINGAPORE : Changes were made to the Employment Act on Tuesday to bring the law up to date with significant changes to the labour market. The Act was last amended 13 years ago.

The face of Singapore's labour force has been changing. There are now more professionals and contract workers, and the services sector hires more than two-thirds of the workforce.

"Employment protection and benefits for certain groups of vulnerable workers need to be enhanced. Employment standards also need to be revised to better reflect employment norms while maintaining labour market flexibility," said Acting Manpower Minister Gan Kim Yong.

Among the major changes are:

- junior managers and executives earning less than S$2,500 will now be covered, and be able to settle salary claims through the Labour Court;
- paid public holidays and paid sick leave will be extended to all employees covered under the Act;
- part-time work will be redefined to include those who work less than 35 hours a week;
- penalties for flouting the Act will be enhanced.

While the changes are long overdue, some MPs questioned the timing and impact on businesses' bottomlines, while others were concerned about possible exploitation.

Dr Lim Wee Kiak, MP for Sembawang GRC, said: "There are areas in the proposed amendments which I feel could have been introduced at a more opportune time than now, when businesses and industries are scrambling to keep themselves afloat."

"One concern that has surfaced is whether some employers will take advantage of the situation and start converting full-time workers to part-time workers," said Madam Halimah Yaacob, MP for Jurong GRC.

Responding, Mr Gan said it is a balance between worker protection and market flexibility. He added that many changes are already industry norms and should not increase costs. - CNA /ls