“As the population ages and more Singaporeans work into their later years, existing laws and policies must be updated to support older workers meaningfully,” Doraisamy says.
Annual leave under pressure as employers brace for higher costs
Doraisamy also points to long-standing gaps in statutory leave that no longer reflect the expectations of today’s workers. Currently, employees are entitled to a minimum of seven days of paid annual leave after one year of continuous service, capped at 14 days, and Doraisamy believes the current setup is no longer sustainable.
“Of the various statutory leave entitlements that may be affected by the upcoming review, annual leave stands out as the most likely candidate for amendment; this provision has remained substantively unchanged over the years,” he says. “There is a growing recognition that the existing minimum entitlement may be inadequate to meet the legitimate needs of today’s workforce, particularly in light of rising levels of occupational stress, fatigue and burnout.”
While the policy goals may be well-intentioned, employers are unlikely to welcome all of them. In particular, increased leave entitlements, higher salary thresholds and the requirement to provide reasons for termination could raise costs and operational complexity.
“The anticipated changes to the Employment Act may face resistance from employers,” Doraisamy says. “Employers may be concerned about the increased operational and administrative costs these changes could bring.”
