Firms liable to pay more workers overtime

Firms now have to pay overtime to non-workmen, such as clerks and sales staff, earning up to $2,500 a month from the previous figure of $2,000. The overtime rate payable, however, will be capped at the basic salary level of $2,250 to help employers manage labour costs. This means that a non-workman who earns $2,400 monthly — previously not entitled to overtime pay — will have his hourly rate computed, capped at $2,250, and receive 1.5 times the rate for every hour of overtime he does. Part of the new amendments made to the Employment Act which take effect today, the change aims to allow more non-workmen to enjoy protection under the working hours-related provisions of the Act. Some of the other changes include protection for professionals, managers and executives earning up to $4,500 against unfair dismissal and claiming of sick leave and public holiday benefits under the general provisions of the Employment Act, which previously didn't include them. Employers who refuse to pay their workers will also face stiffer penalties, with the maximum composition amount revised from $1,000 to $5,000. Photo: AFP