Employment Dispute Resolution in Singapore

1. substructure a. Objectives The objective of the report is to provide a better understanding of the roles of the varied courts in settling business differences. At the end of the report, reader would be able to find alternatives in settling role disputes similarly. b. Methods of Research In this report, in that location leave be real life encase studies colonised by dissimilar courts for settling disputes. These cases pull up stakes help in illustrating the criteria for exploitation the different courts. This report will similarly include internet search. 2. Causes of DisputesDisputes atomic emergence 18 caused when both parties, namely the employer and employee, can non come into an agreement over monetary is serves such(prenominal) as wages, benefits and overtime pay. Other circumstance will be a violation of health safety standards or justness that can be common law or related to piece of work. hail cases will modernise when these disputes argon non rootd by expiation or mediation. 3. numerals Relating to example There are two main acts that concern the procedures of settling disputes. They are the utilisation Act (EA) and industrial dealing Act (IRA). c. Employment ActFor employees cover by the Employment Act, employment disputes will only be consultred to the do bend lawcourt for adjudication if they are unable to be calved amicably by dint of conciliation. Conciliation is a nonwithstandingt which involves negotiations betwixt the parties, then coming up with a mutu tout ensembley agreed decision that is fair to the parties involved. However, certain conditions must(prenominal) be satisfied, that the maintain must be on matters arising non fore spillage than one course of instruction from the date of lodging the claim, and if the employee concerned had already left-hand(a) employment, the claim must be lodged at heart sextette months from the date of deviation employment.For managers and executive direct ors who are not cover by the Employment Act, the Ministry will suppose providing mediation service to help resolve employment disputes on go bad of edit out or retrenchment. Mediation, a non-adversarial process, involves a mediator who will ease the entire process by helping the parties involved to first tell apart issues, discuss, then find a practical solution and settlement that all parties involved are mutually agreeable to and able to accept. The mediation process is voluntary and considered on a case-by-case basis.There are certain requirements that will apply, which includes that the managers and executives are earning $4500 and below, the claim is in respect of a matter which occurred within the period of one year before the date that the issue is reported, if the claim is for items related to their termination (e. g. notice, the issue must be lodged within six months from the date on which the employee has left employment), and when viable alternatives such as one-on -one amicable settlement with employer had been exhausted.However, if either party fails to respond to mediation or if no amicable settlement could be reached after mediation, the matter will then be pursued in the civil court. d. industrial Relations Act The Industrial Relations Act is passed in 1960 to provide a mean to settle employment disputes finished collective bargaining which involves the union, conciliation and if unresolved, through arbitrement held by the Industrial Arbitration court. This act aims to encourage employees who are members of the union, allowing them to enjoy benefits covered under.Examples of union include the Food, Drinks and Allied Workers matrimony and capital of Singapore Airlines Staff meat. This act limits the copy of employees who are in managerial and executive positions in certain areas. As defined in department 30(1) of Industrial Relations Act, an executive employee is an employee who is employed in a managerial or executive position. They are not allowed to have representatives from the union to negotiate for retrenchment benefits upon retrenchment or resolving any dispute in the contract of employment.As this act is a bridge to the tripartite family in Singapore, namely the government, employer and employee, at that place are certain procedures to follow in ossification to filing a case against the employer in a unionized organization. previous the filing, the employee would have to try to resolve the dispute with his immediate supervisor. Failing that, he or she can choose to take up the matter up to a member of the branch committee of the Union who would make a representation of the employee in resolving the dispute.In to a greater extent serious cases, it can be brought up to the Human Resource Department by the General Secretary of Union and may charge request a union management meet with the management of the society. After all means, both parties will then elevate the case to Ministry of workforce fo r conciliation which is an invitation to negotiate under the Act. If an agreement is not reached by both parties, they can seek mediation by the Industrial Arbitration Court. 4. Different Courts The employees covered under the different acts will set ashore up their unresolved disputes to different courts. . wear Court The excavate Court, deals with issues surrounded by employers and employees when they cannot be resolved through mediation or reconciliation at the mammy level. It is empowered by law to inquire into and arbitrate disputes amongst employees and employers. If mediation between the parties does not yield any agreement, for example, company not paying their employee salary or wrongful dismissal. The decisions or orders by the Labour Court are enforceable. It is also to a greater extent viable for the employee to go through the Labour Court to settle employment disputes.However, the employees must not be earning more than S$2500 per month and are covered under the Em ployment Act. In the case of Vertex Global Holdings Pte Ltd, they owed an employee in arrears for about 2. 5 months. They gave the reason of having financial difficulties and were not able to pay the employee. The case was brought up to the Labour Court but they did not accept this explanation and the company was ordered to pay the employee amounting to $2820. In another case whereby a urinate employed by VP Food Pte Ltd, he was terminated after 3 days.However, the employer was to pay him a sum of $235. 38 for work done but was underpaid. The reason that the employer gave was the distress caused by the cooks harassment and there was no notice period specified. The explanation was rejected. The court held that Employment Act prevails and notice pay was payable In such cases, Labour Court comes into good use when dealing with inequitable treatment from the company. But in recent years, the number of cases being brought up to Labour Court has lessen from 2009 to 2010.This shows that mediation or reconciliation has contributed to a huge part of the precipitate in number of cases and they would be a better solution to problems than going to court. f. Industrial Arbitration Court Employment disputes, concerning union members, are not resolve under the conciliation of mammy are referred to the Singapore Industrial Arbitration Court (IAC) for nurture remediation. The IAC resolve disputes between employers and employees by go the best possible solutions that are not only fair and upright to both parties but also in the interest of the community and terra firmas economic situation.The decision make by the Justice of IAC is final hence it cannot be disputed or appealed against. Voluntary and compulsory arbitration are the two ways that employers, unions or the government can refer an employment disputes to the IAC. Through the voluntary arbitration, employers and unions can refer their cases to the IAC through a joint or ex-parte application nonetheless this is o nly applicable when mediation at the MOM level is deem inconclusive. Under compulsory arbitration, a dispute is referred to the IAC when it is directed by the MOM or the President of Singapore.With increase efforts from tripartite co-operation, Singapore has seen a great decrease in the number of cases being handled at IAC. The number of employment dispute cases averaged 10 per year and this indicate that that majority of the cases are being resolved at MOM and union level. This is essential as it helps to reduce unnecessary loss of work man hours and provide foreign investors confidence to invest in Singapore which in turn boosts the Singapore economy. Over the years, IAC has proven to be an effective way in solving disputes between employees and employers however there are cases when one party might feel otherwise.In the case of the dispute between Singapore Refinery Company and the representing union, the general secretary of SRCEU mentioned that the union is thwart with the rul ing as a whole. The case was brought up to the IAC for settlement as the union demanded salary and service increment for SRC employees. The president of IAC concluded that SRC will increase the service increment to 5 per cent plus $15 and 3 per cent salary increment. The union felt that the increment was too low and there was no effective communication between them and the company.This case show that whiles the IAC may provide the best feasible solution however it does not mean that it is the best fit for all the parties involved in the dispute. g. Civil Court The role of civil courts in resolving employment disputes is at minimal. Disputes raised by Professionals, Manager and Executives, also known as the PMEs, earning up to S$4,500, are solved in civil court. However, the Ministry of Manpower in Singapore is looking into resolving their salary disputes in Labour Court in the near future, limiting it to S$20,000.This allows PMEs to seek a lower cost alternative in resolving their disputes. For break dancees in employment contract, it will still be handled by civil courts under law of contract. 5. Comparison h. Differences Between The 3 Courts Civil Court Labour Court Industrial Arbitration Court What they settle? Employment disputes on breach of contract or retrenchment that cannot be resolved through mediation Employment disputes that cannot be settled through conciliation Trade disputes that cannot resolve through conciliation How they settle? The role of Civil Court in resolving disputes is at minimal. Civil Court handles breaches in employment contract under law of contract. The court has the authority to analyse and settle disputes(for example, unfair treatment from the company) Resolve employment dispute through arbitration. The decision made by the Justice of IAC cannot be disputed or appealed against. Criteria PMEs(Professionals, Manager and Executives) earning up to $4,500 No legal representation is allowed in Labour Court.Employees not earning more than $2,500 per month and are covered under Employment Act An executive employee who are employed in a managerial or executive position are not allowed to have representatives from the union to negotiate for them(retrenchment or disputes in the contract of employment) Who can go? Managers and executives that are not covered under Employment Act Employers and Employees under Employment Act Employers and hand unions In the past, Singapore employment law has been favorable to employers.However, the trend in recent years shows that enhancement of employee welfare and safety became more important. i. Singapore versus unite States of America Both countries show various similarities of the roles of court in settling employment disputes. In linked States of America (USA), employees are allowed to sue for dismissal due to discrimination of gender, religion, origin and many more. Employees are principally protected against discrimination under U. S Equal Opportunity relegation (EE OC).In Singapore, employers are encouraged to practice fair employment promoted by many-sided Alliance for Fair Employment Practices (TAFEP). In both countries, employees are allowed to bring their employers to court in any event that there are employment disputes and unresolved by conciliation and arbitration. However, there are differences too. In United States of America, the government is more in favor of the employees whereas in Singapore, the government is more in favor of the employers.Also, in any disputes, the United States of America allows employees to read a lawyer or an attorney to represent them in court. In Singapore, employees covered under different acts are represented by different people such as the union leader or even unrepresented in front of the labour court. The different courts are designed to different cases involving money or other disputes while all disputes in United States are brought to only one court. 6. Conclusion Through intensive research and fin dings, this report covers the key points on how the different courts resolve employment disputes.Although MOM have proven to be an effective medium in mediating disputes between employers and employees, there is still a need for the presence of court to resolve cases that are more complex. Case studies are being brought up in the report to further illustrate how disputes are being resolved at different levels. In referring to the SRC case, it clearly highlight that although the IAC has provided the best possible ease however it does not satisfy all parties who are involved in the case.This means that better procedures can be considered to better understand the problems central between employees and employers. Through our recommendations, it will provide possible solution to further enhance the system that is already in place. The recommendation will not only look at the current problems but it will also propose how corporations can create a harmonious working relationship among em ployers and employees. 7. Recommendations