The Importance of HR Recordkeeping in Singapore

The importance of maintaining accurate employee records cannot be overemphasized enough. With amendments to Singapore’s Employment Act in 2016 and the endorsement of the Personal Data Protection Act (PDPA) 2012 of Singapore, it’s imperative for businesses to be vigilant about the requirements for employee records.

Current regulations govern the collection, use, and secure storage of data relating to current and past foreign and local employees, as well as volunteers. Failing to comply can incur hefty financial penalties. If a civil penalty is enforced and subsequent action has not been taken to remedy or adhere to compliance, it is deemed a criminal offence that could potentially lead to imprisonment.

So, let’s take a look at what HR needs to evaluate to ensure full compliance.

Steps to Compliance

Being proactive and taking the necessary steps to remain compliant makes auditing easier, provides the right level of transparency, and ultimately results in positive collaboration between authorities, Singapore employers, and their employees.

Employee records outlined in the Employment Act are separated into three categories: employee file particulars, payslips, and key employment terms.

To adhere to the PDP Act and Employee Act, and to ensure both the employee and employer are protected against disputes, the following record retention schedules apply to all categories for employee records:

• Current employees: records must be kept for two years.
• Former employees: records must be kept for one year after employment ceases.

The requirements set out below do not relate to practices involving business, accounting, or tax records.

(1) Employee File Particulars

While most employers record basic employment information for each employee, the Employee Act amendments have established a schedule on specific particulars that must be recorded and retained in every employee file.

The minimum Employee File Particulars are:

• Employee’s Full Name as specified on valid ID
• Current Residential Address
• Date of Birth
• Gender
• National / Foreign Identification Number
• First day of the period of continuous employment
• Last day of the period of continuous employment (if applicable)
• Hours worked (for every day) including duration of any breaks (meals, etc.)
• Dates of public holidays and other holidays taken by the employee
• Date when leave is taken (annual, sick, maternity, paternity, childcare, etc.)
• First and last days of each salary period
• Amount of basic salary paid to the employee during each salary period
• Itemization and amount of allowances and other payments during each salary period
• First and last days of each overtime payment period
• Overtime hours worked during each overtime period
• Overtime pay for each overtime period and date of payment
• Itemization and amount of deductions from salary during each salary period
• Net amount paid to the employee for each salary period and date of payment

(2) Detailed Pay Slips

Prior to 2016, there was no enforcement of the law to include certain information in an employee’s payslip. This resulted in inconsistent and sporadic pay details that led to disputes and were difficult to resolve.

To provide more clarity and transparency, employers have to provide a detailed payslip to the employee at least once a month, delivered with the salary payment or within three days thereafter, and can be in the form of a digital or hard copy format.

The minimum Employee Pay Slip Details are:

• Employer’s Name (Registered Company for businesses, or Name as per valid identity)
• Employer’s Trade Name (if different from above)
• Employee’s Name as specified on valid ID
• Amount of basic salary paid to the employee during each salary period
• For hourly wage, include basic rate of pay per hour and hours worked
• First and last days of each salary period
• Itemization and amount of allowances and other payments during each salary period
• First and last days of each overtime payment period
• Overtime hours worked during each overtime period
• Overtime pay for each overtime period and date of payment
• Itemization and amount of deductions from salary during each salary period
• Net amount paid to the employee for each salary period and date of payment

(3) Key Employment Terms (KETs)

HR needs to ensure specific key employment terms are provided to each employee (in writing) within 14 days after employment has commenced. This is to ensure the employee and employer have the same understanding of the job requirements. Additionally, it must be recorded that the employee has acknowledged receipt of the key employment terms.

The minimum KETs are:

• Employer’s name (Registered Company for businesses, or Name as per valid identity)
• Employer’s trade name (if different from above)
• Employee’s name as specified on valid ID
• Employee’s job title
• Description of main duties and responsibilities
• First day of the period of employment
• Duration of employment (for a fixed-term employment contract only)
• Daily working hours, number of working days per week, and rest days
• Salary period
• Basic rate of pay
• Any fixed allowance during each salary period (if applicable)
• Any fixed deduction during each salary period (if applicable)
• Payment period for overtime pay (if different from salary period)
• Rate of overtime pay
• Any salary-related component (bonus, monetary incentives, etc.) (if applicable)
• Leave entitlement (annual, sick, maternity, paternity, childcare, etc.)
• Medical benefits (medical or health insurance, dental benefits, etc.)
• Probation period (if applicable)
• Notice period for dismissal by employer or resignation by the employee

Taking Action

KRIS HR Document Management System (DMS) is an automated HR document management solution that takes away the burden and tiresome task of recordkeeping and managing manual retention schedules. By working with us, we can help review your current policies and systems and develop a strategy to ensure your HR employee documents are in line with Singapore’s latest regulations.