Introduction
Concerns have arisen among our fellow HR practitioners. For instance, what cost-cutting/saving measures are companies allowed to implement to maintain the viability of the business? Is it legal for employers to cut employees' salaries and reduce employee benefits? Would HR practitioners be required to seek consent from their employees or is a unilateral announcement by the management for the cost-cutting/saving measures sufficient? Must fresh consideration be given to the employees? If an employee is not willing to accept the cut in salary or employee benefits, can the employer terminate the employee with notice? And can the employee lodge a complaint against the employer for wrongful and unfair dismissal with TADM or file a civil suit against the employer for breach of contract? It has also been announced that the Jobs Support Scheme (JSS) will be extended. The government will co-fund 25% of local workers' wages, and the last payment will be in October 2020. In heavily impacted industries like air transport, tourism and food services, firms will receive higher co-funding at 50% to 75% of wages. This will be subject to a monthly wage cap of $4,600 per employee. During the circuit breaker period, the JSS has been increased to 75% regardless of the various sectors. Any employer would wonder if the above measures are sufficient to retain their employees, or if there is reasonable cause to retrench employees. How should retrenchment go about between an unionised and non-unionised company? Must there be a need to provide retrenchment benefits or can the employer simply terminate with notice in accordance with the employment contract? To address the concerns that many HR practitioners have surfaced, we will be conducting a virtual workshop on Zoom to guide you on cost-cutting/saving measures targeted at cutting manpower costs. Key takeaways for HR practitioners include learning how to implement said measures and how to legally comply with statutory and common law in doing so. Most importantly, the various cost-cutting templates such as retrenchment, salary reduction, no pay leave, etc, letters will be given in the workshop.
Learning Objectives
At the end of this workshop, participants will be able to:
- Understand how the circuit breaker came about for COVID-19
- Understand basic contract law and the requirements for implementing the cost-cutting measures.
- Drafting HR policies and procedures for working from home.
- Understand the different types of wage components and it applications.
- Know the various cost cuttings/saving measures and what are the employer’s obligations.
- Grasp the various schemes given by the government given COVID 19.
- Understand the role of HR Practitioners in executing the cost cutting measure.
Course Outline
- Salient points for the Covid-19.
- Variation of terms in the employment contract.
- NWC guidelines.
- Mandatory notifications on cost savings measures.
- Differences between cost cutting and cost saving measures.
- HR policy, WFH during the CB period.
- Coverage of employees in EA and its applications on wage components.
- Coverage of employee under the CPF Act and its applications on wage components.
- Types of wage components and statutory Acts.
- Gross rate of pay, EA.
- Gross monthly salary, JSS.
- Differences btw allowances and reimbursement.
- Training and absenteesim grants.
- Reduction in employee benefits
- Conversion from full-time to part-timer.
- Foreign workers under work pass.
- Further Measures to Help Companies During Extended CB.
- Monthly Variable Component.
- Wage cut.
- Voluntary and compulsory no pay leave.
- Furlough scheme.
- Payment of AWS and other variable payments.
- Work on rest day. 24 Retrenchment.
- Re-employment and EAP
- Employer’s responsibilities towards employees.
- Sample letters on cost-cutting/savings measures.
Sample announcement and letters for the workshop will be given:
- CEO announcement on Company wide mandatory clearing of annual leave for the year 2020, COVID-19.
- CEO announcement on Company wide wage cut, COVID-19.
- CEO announcement on Company wide mandatory one day no pay leave per week, COVID-19.
- CEO announcement on activating monthly variable component, COVID-19.
- Letter to employee on Mandatory no pay leave, COVID-19.
- Letter to employee on Wage cut, COVID-19.
- Letter to employee on activating monthly variable component, COVID-10
- Retrenchment, COVID-19
- Freezing of annual wage supplement for 2020, COVID-19.
- Continuity of employment/Frustration of employment contract, Immigration.
