Process to temporarily reduce wages of local and foreign employees

Apr 01

Here is a quick overview for employers considering short term measures to reduce working hours and wages, in accordance with the Tripartite Advisory on responsible retrenchment . This applies to CPF paying employees, as well as foreigners on Employment Passes (EP), and Letters of Consent (LOC).
*** The below steps are DIY. If you are a Futurebooks payroll client, please drop us a note, we will assist with the below steps at no cost ***
Steps:
 
1. Seek written consent from respective employees.
This is for all employees, local and foreign. It takes about 15 minutes to complete and requires a CorpPass.
This is a notification and does not require approval.
3. Prepare excel sheet in designated format with list of foreign employees whose wages will be temporarily cut.
This takes about 5 minutes, and requires CorpPass. MOM will respond back in three working days with approval.
The salaries of EP and LOC holders can be reduced only after receiving approval in Step 4.