- Newsletter, U.A.E
- May 13, 2019
A new research shows that the UAE is steadfast in adopting all the latest technologies and that is why it remains far ahead of the global average in terms of artificial intelligence (AI) maturity.
Microsoft’s AI Pulse report has shown that the companies in the UAE were a lot more proactive in implementing AI solutions, as compared to global peers. Around 70 percent of the double-digit expansion companies in the UAE plan to use AI in this year for improving their decision-making, as against 46 percent globally. Also, 45 percent of the UAE’s single-digit expansion companies plan on AI adoption for better decision-making in 2019, again going far ahead of the global average of 31 percent.
AI Pulse is a global initiative by Microsoft that is especially designed to enable in forming the desire and intentions of senior executives globally towards AI. Respondents’ firms were divided into the following categories: high-growth firms, which have double-digit growth and lower-growth firms, which have single-digit growth. The AI maturity of all the companies was then categorised as either: waiting, exploring, experimenting, formalising, or integrating. It was established that about 38 percent of high-growth firms globally are either at the ‘formalising’ or ‘integrating’ levels; however, only 17 percent of lower-growth firms were seen at those levels.
UAE leaders were surveyed in February this year and it was found that almost 47 percent of higher-growth organizations and 15 percent of lower-growth companies in the country has reached the ‘formalising’ or ‘integrating’ stages. With higher-growth firms, this proves a considerably higher AI maturity as compared to the global average.
Experts feel that UAE businesses are currently on the right path in terms of the adoption of AI solutions and the government sector is leading the momentum.
Regarding leadership issues, the report proved that the respondents were typically split over business priorities, as no clear preferences emerged out of the poll. Having said that, the UAE leaders continued to show a greater degree of conviction, with 38 percent choosing the evaluation of success as their top priority for time investment. The prioritisation of business goals and initiatives was tied between the UAE leaders for second place with the handling of facts and information, each getting validation from 30 percent of UAE respondents.
Besides, most firms in the UAE think that AI will have intense effects on various aspects of future leadership, like in overall control, solving challenges, and offering a direction for the workforce. Almost 78 percent of double-digit growth organizations globally and 70 percent of other firms encourage the re-skilling measures to make sure that they are ready for the AI future, almost 97 percent of the UAE leaders said that they supported these measures.
- Newsletter, U.A.E
- May 13, 2019
The UAE-India ties have been fortifying over the past few years as UAE’s investment pouring into India crossed the $10bln mark.
The financial, political and cultural ties between UAE and India are in their golden phase as the bilateral trade and investments have been growing each year.
Sheikh Nahyan bin Mubarak Al Nahyan, who is the UAE Minister of State for Tolerance, acclaimed the bilateral ties of friendship and trust between these two countries. He also pointed towards the important role of sustainable knowledge-driven economy, new innovations and also dialogue in accomplishing peace and constant progress.
Navdeep Suri, who is India’s ambassador to the UAE, felt that the growing ties between these two countries are mirrored in many incidents like awarding of Sheikh Zayed Award to the Indian Prime Minister Narendra Modi and then UAE inviting the India’s foreign minister Sushma Swaraj for addressing the Organisation of Islamic Countries conference held at Abu Dhabi recently. The ambassador also appreciated Abu Dhabi’s role in establishing the Hindu temple in the UAE.
Vipul, the consul general of India in Dubai, said that the bilateral financial, political and cultural ties between these two nations have been consolidating further over the past few years as UAE has been investing in India and the mark has now crossed $10 billion.
Vipul was addressing the 37th annual conference of The Institute of Chartered Accountants of India (ICAI) in the Dubai Chapter. He also said that the two countries have been collaborating together and making millennium strides in various industries like food processing, defence, space, etc. industries and foreign company registration in India has been on an all-time high.
This annual conference was organised under the title of “Accelerating Millennium Strides – transforming by power of knowledge.” About 2,000 members of the ICAI – Dubai Chapter – were present in the annual conference. Vipul also mentioned that India has been at vanguard of global expansion as it is now touted as the most-rapidly growing economy in the world.
He stressed how India was working to remove poverty and making millennium strides in all the areas, be it science, technology, culture, and many other sectors. And the same is true for the UAE. UAE’s focus also been on spreading tolerance, happiness, making new collaborations and fostering technology. The UAE also is a great example of how people can work and dwell in coherence in a multicultural society.
So if you are thinking of setting up your business in UAE or looking for business setup consultants in Dubai, do get in touch with us and we would be glad to assist you.
- Bahrain, Newsletter
- May 13, 2019
A new structured program would enable the start-ups in Arab to briskly enhance their businesses and fetch a wider spectrum of assistance in Bahrain.
Bahrain recently announced rolling out a brand new program that is going to aid about 100 Arab start-up companies, which are modelling the Fourth Industrial Revolution, at the World Economic Forum (WEF), held recently in Jordan. This structured programme would allow these Arab start-up companies to scale up their businesses rapidly, thus, getting an access of a wider range of support in Bahrain.
Here is the press release about this announcement. Please click this link to view a list of all the 100 start-up businesses from across the Arab World: https://widgets.weforum.org/arabstartups/
The special advantages given to these 100 Arab start-up companies include:
- An entry to the market of Bahrain for all businesses that have been marked under the 100 Arab Start-Ups banner – and also going back to the ones that were selected in the year 2017
- The applications to be fast-tracked for establishing a presence in Bahrain
- Creating a special concierge service for 100 Arab Start-Ups to assist these start-ups to steer through and reap benefit from Bahrain’s ecosystem
- A chance to pitch and get the required funding from Bahrain’s Sovereign Wealth Fund, and from the VC partners of Al Waha Fund of Funds and even from the family offices in the Kingdom
Khalid Al Rumaihi, who is the chief executive of the Bahrain Economic Development Board, said that the 100 Arab start-ups moulding the Fourth Industrial Revolution is a very good initiative and they would jointly make sure that it not just an annual event but a continuous source of assistance and aid to the most-promising businesses so that they can become world leaders in their chosen fields. These firms or businesses would outline the future and therefore, more new prospects that Bahrain can offer along with some special incentives are being opened to provide the best-possible and comprehensive support. In affiliation with the World Economic Forum, with this programme, the best-possible support is being offered to the best chosen businesses.
As per data from MagniTT (a firm selected twice by the 100 Arab Start-Ups initiative), there has been a 31 percent rise in investments as compared to 2017 and a new record was established for regional start-up funding in 2018.
The foreign investment continued to be stable in the year 2018 as about 30 percent poured in from outside the Arab territory, while fintech shot over e-commerce as the top-most industry because of an 8 percent rise in deals since 2017.
A selection committee of professionals and experts on the start-up ecosystem worked along with the World Economic Forum and the EDB for screening and selecting the 100 start-ups.
With the support and presence of TM King Abdullah II and Queen Rania Al Abdullah, this meeting assembled over 1,000 top leaders from government, civil and business society, along with leaders from the Levant and North Africa, Gulf Cooperation Council (GCC) countries, and major global stakeholders from Europe, East Africa, and the US.
- Newsletter, U.A.E
- May 13, 2019
Thinking of company formation in Dubai? It’s the right time to go for it as China will be doing some major investments in Dubai now.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, who is the Vice-President and Prime Minister of the United Arab Emirates and the Ruler of Dubai recently visited Beijing for the second phase of the Belt and Road initiative.
Some key deals have been signed and investments were also announced on his China visit. Making this announcement public on Twitter, Sheikh Mohammed mentioned that a 60 million square feet station will be launched at the new Silk Road in Dubai for Expo 2020.
The Chinese company Yiwu plans to pump in an investment of about $2.4 billion to use this station for storage and transporting the Chinese goods from Jebel Ali to the rest of the world via New Silk Road.
The Chinese President Xi Jinping was seen shaking hands with UAE Vice President and Prime Minister Sheik Mohammed bin Rashid al Maktoum when they met on a bilateral meeting of the Second edition of Belt and Road Forum at the Great Hall of the People on April 25, this year in Beijing, China.
He proclaimed another project that would be launched in Dubai for $1 billion. It is named as ‘vegetable basket’, which is funded by the China-Arab investment fund. It would be importing, processing and then packing various agricultural products, and animal products and marine products and then export them to the whole world via the new Silk Road.
He joined 40 other state leaders and delegations who came from 150 countries and global organisations, like the International Monetary Fund, the United Nations, and other such entities covered by the initiative which was launched by President Xi Jinping.
Sheikh Mohammed mentioned that the UAE would have a key role to play in improving global cooperation and reinforcing regional ties with the world. He said that the UAE is looking forward to strengthening its international ties in various fields; thus hinting towards this year being an ideal time for best company formation in UAE.
He emphasized on UAE’s continuous efforts to foster positive communication and plan combined action for forming the foundations of sustainable development.
- Newsletter, U.A.E
- May 13, 2019
Expo 2020 Dubai is slated to contribute a whopping AED122.6 billion of gross value added (GVA) to the UAE’s economy between the time period of 2013–31. It is also expected to aid up to 905,200 full-time equivalent (FTE) job-years in the United Aran Emirates in 2013–31, which is equivalent to almost 49,700 FTE jobs every year in the UAE over this period.
Najeeb Mohammed Al-Ali, who is the Executive Director of the Dubai Expo 2020 Bureau, said that Expo 2020 Dubai is a very important long-term investment for the future of the Kingdom, which is going to contribute over 120 billion dirhams into the economy between the period of 2013 and 2031.
This is going to hearten millions around the globe to visit the UAE in the year 2020, while encouraging travel and tourism and aid economic diversification for times to come after the Expo. It will also leave behind a sustainable financial legacy that would help in ensuring that the UAE continues to be a leading hub for business, investment and also leisure.
This expo is projected to draw almost 25 million visitors and participants from over 190 countries from the time-period of October 2020 to April 2021. In this duration, it is estimated that the World Expo would contribute about 1.5% of the UAE’s yearly forecasted gross domestic product (GDP).
Besides that, the small and medium-sized enterprises (SMEs) are predicted to get almost AED 4.7 billion as investments in the pre-Expo phase, aiding about 12,600 job-years, and also helping to fulfil the Expo 2020’s goal to promote innovation and encourage small businesses.
During the Legacy period, that is between the month of May 2021 to December 2031, the Expo site would be redeveloped to District 2020, which is going to comprise tenant firms and an expanded Dubai Exhibition Centre (DEC).
District 2020 is strategically planned to promote the UAE’s future vision by aiding sustainable financial development, thus, going a step closer to an innovation-driven economy and nurturing a business environment to assist major growth industries like logistics and transport, construction and real estate, travel and tourism, and education.
More than 80 percent of the Expo built environment is intended to be preserved for District 2020, and ultimately expanded into a city that covers over four million square meters. District 2020 businesses would be focused on innovation and new technology, comprising a blend of corporations and SMEs. The DEC is also going to be a major facility in the site.
The financial effect of the Legacy period is majorly anticipated to be driven by the expansion activity and operations of District 2020 along with the incremental outcomes of DEC’s expansion.
To conclude, there is going to be a ‘direct’ rise in economic activity, while there would be ‘indirect’ advantages of enhanced supply chain demand and ‘induced’ profits from amplified spending by employees of companies involved in Expo 2020.
Expo 2020 Dubai will be the first World Expo that will take place in the Middle East, Africa and South Asia (MEASA) region in the 168 years of history of the event. Close to over 200 participants, which will include of nations, corporations, firms, educational institutions and multinational organizations, would gather in Dubai between the month of October 2020 to April 2021 to discover the Expo 2020’s theme of ‘Connecting Minds, Creating the Future’.
- Article, India
- May 6, 2019
In order to improve the Indian economy, the Government of India is launching various schemes to promote company formation in India. One such scheme is ‘Start-up Initiative Scheme’, which was launched in January 2016 by the honourable Prime Minister Narendra Modi.
Start-ups play a significant role in pushing the economy forward. The Government of India has launched the ‘Start-up Initiative Scheme’ with the action plan framed by the Department of Industrial Policy and Promotion (DIPP) to make the start-up registration process easier and increase the entrepreneurial drive in India.
Benefits of Start-up Action Plan
- The action plan simplifies the start-up registration process. It expedites the legal compliance process, encourages the set-up of start-ups and access through the use to mobile app or web portal further simplifies the work.
- The government has allocated Rs. 10,000 crores to help the start-ups to establish themselves. The action plan also provides many other monetary benefits like tax exemption on capital gains, credit guarantee, etc.
- The action plan provides the start-ups with resources and knowledge bases that are essential for efficiently running the business. Furthermore, it also promotes industry partnerships and focuses on promoting business in the biotechnology sector.
Let us now have a look at the start-up registration criteria.
Criteria for Start-up Registration
- The start-ups can be either of the following; limited liability partnerships (LLPs), private limited companies, or partnerships.
- The start-up has been incorporated not more than 5 years ago.
- Turnover since its operation for each year is less than Rs. 25 crores.
- It must be developing products that add value to the customers.
- It must have obtained DIPP approval.
- The start-up must focus on developing innovative products.
- The start-up must have a recommendation letter.
- The start-up must have a patent from the trademark office and Indian patent.
- The start-up must be funded by angel fund, private equity fund, incubation fund or angel network.
Moreover,
- There is an exemption from capital gain if the start-up is under the start-up India campaign.
- New entrants get the benefit of tax holiday for 3 years.
Your business is eligible for start-up registration if you fulfill the above criteria. There are many benefits of registering the start-up with DIPP. Let us see some of the benefits of registering the start-up with DIPP.
Benefits of Registering the Start-Up with DIPP
- The start-ups get the benefit of self-certification if they fulfil the compliances in relation to 9 labour laws and environmental laws.
- Faster tracking of patent application and rebate of up to 80% on patent fees.
- The start-ups get the opportunities and same level playing field which are available to the experienced entrepreneurs.
- As per the Insolvency and Bankruptcy Code of 2016, a registered start-up gets the time period of 90 days to execute the exit strategy.
- An amount of Rs. 25 crores has been set aside by the government to help the start-ups.
- Tax exemptions in the form of exemption on capital gains and investments made by incubators or angel investors are Furthermore, tax exemption for 3 years is available to the start-ups.
- National Credit Guarantee Trust or Small Industries Development Bank of India (SIDBI) provides help for over 4 years to DIPP registered start-ups.
- DIPP provides a common platform for new entrepreneurs to grow their business by engaging with the leaders of the industry.
There are many other benefits of registering the start-up with DIPP. IMC Group provides assistance to the start-ups in India. Our experts can help your start-ups grow and function at a rapid pace. We also provide assistance for foreign company registration in India. To know our quotes, you can send us an e-mail or get in touch with us on our number.
- Article, U.A.E
- April 30, 2019
It is almost a year since the business communities in the UAE are familiarised with the word ‘VAT Audit’. It is essentially a compliance check conducted by the Federal Tax Authority (FTA) to verify that the VAT liability is correctly assessed and the tax return is accurately filled by the taxpayers. It could be carried out at the business premises of the company or in the offices of the FTA.
In the UAE, the standard VAT return filing period is on a quarterly basis. However, FTA may request certain types of businesses to file the VAT return on a monthly basis. This is majorly done to eliminate the risk of tax evasion and at the same time to improve the monitoring of compliance adherence by the businesses. The VAT return filing period applicable to each taxpayer is available on the FTA portal.
The VAT Return Filing Process
Taxpayers need to fill the form – ‘VAT 201’ for the completion of VAT return filing process. In order to fill the form, you have to log in to the E-services portal of FTA and select the option of ‘VAT’ followed by ‘VAT 201’ and ‘VAT Return’.
Taxable Person Details
You have to enter your name, address and Tax Registration Number in this section.
VAT Return Period
You have to enter your VAT return period here. Further details like tax year end, due date, etc. will be generated automatically.
VAT on Sales and All Other Outputs
Here you have to compile the details of taxable supplies at Emirates level, supplies subject to reverse charge mechanism, zero rate supplies, exempt supplies, etc.
VAT on Expenses and All Other Inputs
Here you have to compile the details of expenses or purchases on which you paid 5% VAT. Also, include the input tax that has to be recovered.
Net VAT Due
This is the VAT payable for the return period.
Additional Reporting Requirements
If you have used any profit margin scheme or have applied for the same, you need to fill in this section or else you can leave it by clicking on the ‘No’ option.
Declaration and Authorised Signatory
Here you have to provide the details of authorised signatories and then click on the submit form tab.
Things to Take Care of While Filing VAT Return
- All the amounts mentioned in the return should be in United Arab Emirates Dirhams (AED) currency.
- All the amounts mentioned in the return should be rounded off to the nearest figures of the fills.
- The sections marked mandatory should be compulsorily filled.
- If there is no amount to be declared, use ‘0’.
The Bottom Line
Submitting incorrect VAT return or furnishing wrong details can attract huge penalties. Therefore, it is vital to seek professional help for filing your VAT returns. IMC Group is one of the leading VAT consultants in UAE. With our help, you can comply with the VAT laws as we keep you informed of all the latest updates and guidance issued by FTA from time to time.
- Article, U.A.E
- April 29, 2019
The UAE’s tax-free and business-friendly environment has encouraged many foreign companies to set up their regional base in the country. When these foreign companies operate across borders and employ an international workforce, they need complete knowledge of the local regulatory requirements. They must be compliant with global HR policies to avoid the risk of facing legal sanctions.
Managing a multinational company in the UAE is a complex task, especially when it involves handling a workforce from diverse cultures. Although an attractive salary is a key factor for employees, managing salary transfers and payslips can be challenging for companies. Therefore, it is important for large businesses to understand the international payroll solutions available in Dubai. This will help them maintain a skilled, talented, and loyal workforce while ensuring compliance with various UAE payroll tax and employment regulations.
The diverse expatriate nationalities and the dynamic local regulations make payroll a critical business process. Moreover, after implementing the Wage Protection System (WPS) in the UAE, all the companies operating in the region are required to document a proper payroll process. Owing to this rule, many companies now need expert assistance for payroll services. This has given rise to outsourced payroll services in the UAE.
Need for Payroll Services in Dubai, UAE
Outsourcing payroll services in Dubai is a need rather than a choice for many foreign companies. It not only reduces their operational cost but also helps in keeping their payroll related information confidential from the internal employees. Moreover, outsourcing payroll services can save a company from involving itself in numerous administrative and legal requirements that come with hiring an internal employee.
Managing employee payroll can be time-consuming, as it involves issuing payslips, making salary transfers, tracking leave, and handling other administrative duties. Outsourcing this task to a local payroll service provider in the UAE can save time and effort. Ensure that your employees are registered in the WPS system and that final settlements and end-of-service benefits are paid out to them promptly when they leave.
Outsourcing payroll administration can relieve multinational companies of the stress of managing payroll and allow them to focus on their core operations. In UAE, payroll processing must comply with strict labor laws, and any errors can lead to penalties. Partnering with a local payroll service provider can help businesses comply with regulations, such as filing payroll tax, providing end-of-service benefits, and WPS registration.
Benefits of Outsourcing Payroll Services in UAE for Foreign Companies
Cost-Effective Payroll Solutions
Access to Expert Knowledge
Enhanced Confidentiality
Focus on Core Business Activities
Conclusion
Foreign companies looking to establish a foothold in Dubai can significantly benefit from hiring payroll services in the city. Dubai’s economic prosperity, combined with the expertise and efficiency of payroll services providers, can transform how foreign companies operate in this thriving metropolis.
Outsourcing payroll services ensures legal compliance and saves time and resources, allowing foreign companies to focus on their core business activities. It’s a strategic move that enhances efficiency and contributes to the long-term success of foreign businesses in Dubai.
Since payroll is a critical business function, it should be given to trustworthy people. IMC Group provides a complete range of payroll services in the UAE, including payroll management and processing services. Regardless of the number of employees, size of the organisation, and complexities involved in the payroll process, we offer tailor-made solutions to suit your specific needs.
Some of our services include:
- Issuance of monthly pay slips, bank transfer letters and salary certificates
- Managing paid leaves, holidays, and absentees
- Issuance of No Objection Certificates for employees
- Support for setting up the Wages Protection System
- Calculation of statutory gratuity payments as per the UAE labour law
- Assisting employees in choosing and applying for suitable health and medical insurance
We also offer accounting services in Dubai.
- Newsletter, Singapore
- April 16, 2019
South East Asia is a major business hub for Indian entrepreneurs with global ambitions. With every passing year more and more Indians are turning eastward to launch their business. Whether it is for the global expansion of their existing business or to set up a new business, there are several reasons why many Indian are considering to set up in South East Asia. In fact, it is an ideal location for companies all over the world to set up a new business or expand their market.
South East Asia’s start-up ecosystem, highly efficient infrastructure, sizeable collective market, greater ease of doing business, huge consumer demand, stable political environment, attractive tax regime, efficient regulatory systems and many more factors contribute to making it a fantastic gateway for start-ups looking to go global. Moreover, the business-friendly environment and easy access to venture capital also attract many Indians to South East Asia. The region provides the most conducive environment for companies looking to expand in the region.
Industry sources reveal that every 1 out of 7 start-ups in South East Asia is launched by Indians or Indian-origin CEOs. Apart from the above mentioned reasons, another major reason for company formation in Singapore and other South East Asian countries is the government support. The government in South East Asia actively extends help to new entrepreneurs by assisting them in mentorship, quick regulatory clearances, seed funding and a hands-on approach to solve any problems they face. The government promotes these newly launched ventures by offering salary subsidies, growth funding and conducive business environment.
Setting up a business in South East Asia is very easy and straightforward. It welcomes with open arms investors, entrepreneurs and professionals who can complement its economy. Moreover, Singaporean authorities are extremely fast and efficient. Company registration in Singapore takes just a few hours, right from getting the registration number to signed MoUs, everything is quick and efficiently handled.
The attractive tax rate in South East Asia is also a major reason to draw Indians as it is almost half of that in India. This helps the Indian entrepreneurs retain their earning and price their products more competitively. South East Asia also gives the advantage of huge customer demand. If you look at Singapore alone, the population base is around 5.6 million, which is quite good to serve.
Bottom Line
South East Asia enjoys one of the top-most positions in the global economy and continues to be every entrepreneur’s dream destination. The above mentioned factors make South East Asia the world’s top region when it comes to doing business.
Seeing an opportunity, we, at IMC Group have set up our own office in the region to cater to the growing needs of businesses. We offer a range of company registration services in Singapore right from conducting an initial market survey to acquiring various business licenses, getting government approvals, conducting company incorporation formalities, preparing necessary documentation, assisting with payroll, accounting and finance and much more. We offer one-stop business solution to entrepreneurs looking to set up their business in Singapore.
Get in touch with us for more information on how we can help you!
- Newsletter, Singapore
- April 15, 2019
There have been some major changes which have come into effect on 1 April 2019, and thus, various businesses in Singapore should act accordingly and update their HR policies and processes.
Singapore’s Ministry of Manpower (MOM) announced some key changes to the Employment Act (EA) last in November 2018. There are four main areas that are impacted by these changes, which have come into effect from 1 April 2019. All the professionals, managers, executives and technicians (PMETs) will account for more than half of Singapore’s workforce, which is continuing to expand. The EA changes intend to keep the systems and procedures relevant and up-to-date as per the workforce trends.
Extension of some fundamental provisions for protecting more employees
Till now, the main provisions of the EA did not cover managers and executives (M&Es). However, with PMETs accounting for over half of the workforce now, which is forecasted to go up to two-thirds by 2030, it was obvious that the EA was not able to keep up with the changes in the workforce demographic. Thus, the key provisions are being stretched to include M&Es.
For facilitating this, the earlier S$4,500 per month salary cap has been removed starting 1 April, getting additional 430,000 M&Es within the protection area of the key provisions of the EA. This comprises a minimum of seven to 14 days of annual leave, plus paid public holidays, sick leave, on-time salary pay-outs and protection against any wrongful dismissal. However, public servants, seafarers and domestic staff will not be included under the EA main provisions because they are covered under separate laws owing to the characteristically diverse pattern and nature of work.
Extension of part IV
EA’s Part IV is being amended to profit from an additional 100,000 workers by enhancing the monthly salary cap from S$2,500 to S$2,600, and by further enhancing the monthly basic salary cap which is used to calculate the per hour overtime rate from S$2,250 to S$2,600. This is basically a recognition of the rise in the median wage level prevalent in Singapore, which will mainly get the employees whose salaries have gone up beyond the cap, back under this EA provision. This amendment applies only to non-workmen (white-collar employees who are not in M&E positions). The earlier monthly salary cap applicable for workmen (blue-collar employees who are involved in manual labour) still remains at S$4,500.
Improvement of the employment dispute resolution framework
For centralising all the employment dispute resolution, the settlement of wrongful dismissal claims would be now moved from MOM to the ECT or Employment Claims Tribunal. In addition, the length of service needed for M&Es to be eligible for protection from any wrongful dismissal will be reduced from the current 12 months to half, which is six months. Very shortly, the new tripartite guidelines would be issued by MOM to explain what could be defined as wrongful dismissal.
Improved flexibility for the employers
There will be two key amendments which will enhance the flexibility that firms have in operating their businesses.
First, there would be enhanced flexibility in terms of compensating employees who work during public holidays. All the employees who are earning up to S$4,500 every month and the non-workmen who are getting up to S$2,600 every month could be remunerated either by compensation of an extra day’s salary or by getting one extra day off. In case of M&Es and for workmen earning over the cap of S$4,500 and non-workmen earning more than S$2,600, the business could offer the salary of extra day, a one-day off or time off which is less than a full day.
As of now, firms can only make any salary deductions for reasons like absence from work or causing a damage to goods delegated to the employee or for some loss. But from 1 April 2019, this has been changed and companies are now permitted to make some other deductions if the employee agrees to the deduction in writing and the owner or employer permits such deductions to be annulled at any juncture by the employee without having to apply any penalties.
What should employers do now?
These EA amendments need immediate action by businesses and they should update their HR policies, processes and practices. All the employee handbooks, any employment agreements and other organization policies would have to be reviewed and updated, and then published.
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