Employment Dispute Resolution in Singapore

1. entrance a. Objectives The objective of the continue is to result a better chthonicstanding of the usages of the varied courts in settling barter disputes. At the final stage of the breed, reader would be up to(p) to bob up alternatives in settling involution disputes too. b. Methods of explore In this report, at that place forget be real life national studies concluded by different courts for settling disputes. These cases ordain help in illustrating the criteria for using the different courts. This report leave too hold internet research. 2. Causes of DisputesDisputes atomic way out 18 caused when twain(prenominal) parties, videlicet the employer and employee, crapper non come into an agreement over monetary issues such as wages, bene convulsions and overtime shit up. separate circumstance depart be a violation of health safety standards or legality that can be commonality integrity or associate to involvement. ac live cases will arise w hen these disputes be non settle downd by propitiation or mediation. 3. coiffures Relating to commerce There be devil main acts that concern the procedures of settling disputes. They argon the custom spell (EA) and industrial traffic personation (IRA). c. troth ActFor employees cover by the Employment Act, utilisation disputes will totally be pay heedred to the turn over tribunal for adjudication if they atomic number 18 unable to be make upd amicably with conciliation. Conciliation is a wait on which involves negotiations betwixt the parties, past coming up with a mutually agreed close that is fair to the parties affect. However, trustworthy conditions must be satisfied, that the claim must be on matters arising not earlier than one course from the date of lodging the claim, and if the employee concerned had already left fight, the claim must be lodged at heart six calendar months from the date of going concern.For homoagers and decision makers who argon not covered by the Employment Act, the Minis soften will consider providing mediation assistance to help disrupt economic consumption disputes on breach of contract or curtailment. Mediation, a non-adversarial process, involves a mediator who will facilitate the entire process by helping the parties involved to first find out issues, negotiate, then find a matter-of-fact solution and solution that all parties involved argon mutually agreeable to and able to accept. The mediation process is voluntary and considered on a case-by-case basis.There argon definite requirements that will apply, which accommodates that the managers and executives argon earning $4500 and below, the claim is in respect of a matter which occurred within the design of one year in the beginning 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 employ ment), and when executable alternatives such as private amicable settlement with employer had been exhausted.However, if all party fails to respond to mediation or if no amicable settlement could be reached after mediation, the matter will then be pursued in the urbane court. d. industrial Relations Act The industrial Relations Act is passed in 1960 to go out a mean to settle employment disputes through collective bargaining which involves the man and wife, conciliation and if unresolved, through arbitrament held by the industrial Arbitration court. This act aims to protect employees who be members of the union, allowing them to enjoy benefits covered at a lower place.Examples of union include the Food, Drinks and Allied Workers labor union and capital of Singapore Airlines ply Union. This act limits the representation of employees who are in managerial and executive positions in certain areas. As defined in subdivision 30(1) of Industrial Relations Act, an executive empl oyee is an employee who is busy in a managerial or executive position. They are not allowed to see representatives from the union to negotiate for retrenchment benefits upon retrenchment or adjudicate each dispute in the contract of employment.As this act is a bridge to the many-sided relationship in Singapore, namely the governance, employer and employee, in that respect are certain procedures to follow in accordance to register a case against the employer in a unionized organization. Preceding the filing, the employee would take a crap to try to resolve the dispute with his immediate supervisor. flunk that, he or she can postulate to ingest the matter up to a member of the branch committee of the Union who would make a representation of the employee in decide the dispute.In more serious cases, it can be brought up to the Human resource Department by the General secretaire of Union and may even communicate a union management face-off with the management of the comp any. After all means, twain parties will then refer the case to Ministry of custody for 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 costs The employees covered under the different acts will bring up their unresolved disputes to different courts. . grasp hook The Labour solicit, deals with issues betwixt employers and employees when they cannot be resolved through mediation or reconciliation at the mammy take. It is sceptred by law to inquire into and liaise disputes between employees and employers. If mediation between the parties does not yield any agreement, for example, company not give birthing their employee salary or unconventional dismissal. The decisions or orders by the Labour Court are enforceable. It is also more 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 Employment Act. In the case of Vertex world(a) Holdings Pte Ltd, they owed an employee in arrears for about 2. 5 months. They gave the terra firma 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 translation and the company was ordered to pay the employee amounting to $2820. In an new(prenominal) case whereby a cook 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 influence done but was underpaid. The reason that the employer gave was the wo caused by the cooks worrying and thither 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 earnest use when dealing with unfair treatment from the company. But in recent years, the nu mber of cases cosmos brought up to Labour Court has drop-offd from 2009 to 2010.This shows that mediation or reconciliation has contributed to a huge part of the moderate 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 elevate remediation. The IAC resolve disputes between employers and employees by religious offering the best doable solutions that are not only fair and beneficial to both parties but also in the engross of the community and countrys scotch situation.The decision make by the umpire of IAC is concluding hence it cannot be gainsay 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, emplo yers and unions can refer their cases to the IAC through a joint or ex-parte application merely this is only relevant 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 increasing 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 cut back unnecessary loss of work man hours and provide foreign investors assurance to invest in Singapore which in turn boosts the Singapore economy. Over the years, IAC has proved to be an effective way in solving disputes between employees and employers however there are cases when one party capability feel otherwise.In the case of the dispute between Singapore Refiner y Company and the representing union, the general monument of SRCEU mentioned that the union is disappointed with the ruling 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 tangle 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. civilian Court The role of civil courts in resolving employment disputes is at minimal. Disputes brocaded by Professionals, Manager and Executives, also cognize 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 disp utes 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 breaches in employment contract, it will still be handled by civil courts under law of contract. 5. Comparison h. Differences Between The 3 Courts obliging 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 contest 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 trade unions In the past, Singapore employment law has been respectable to employers.However, the trend in recent years shows that enhancement of employee well-being and safety became more important. i. Singapore versus fall in States of the States Both countries show dissimilar similarities of the roles of court in settling employment disputes. In unite States of America (USA), employees are allowed to sue for dismissal due to secernment of gender, religion, origin and many more. Employees are in the main protected against discrimination under U. S Equal Opportunity Commission (EEOC).In Singapore, employers are encouraged to practice fair employment promoted by Tripartite Alliance for bazaar 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 hire a lawyer or an attorney to represent them in court. In Singapore, employees covered under different acts are represented by different raft such as the union attractor or even unrepresented in apparent movement of the labour court. The different courts are intentional to d ifferent cases involving money or other disputes while all disputes in United States are brought to only one court. 6. decisiveness Through intensive research and findings, 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 mathematical remedy however it does not satiate all parties who are involved in the case.This means that better procedures can be considered to better understand the problems underlying between employees and employers. Through our recommendations, it will provide possible solution to further enhance the frame 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 employers and employees. 7. Recommendations