Prevalence of Non-compliance with Overtime Regulations and Study on Impact on Workers
Ministry of ManpowerSpeakers
Summary
This question concerns Mr Gerald Giam Yean Song’s inquiry into the prevalence of inflated job titles to avoid overtime pay, the safeguards against such practices, and studies on worker burnout. Minister for Manpower Dr Tan See Leng responded that misclassification remains low, with the Tripartite Alliance for Dispute Management receiving 45 annual claims and finding 30% valid based on actual job scope. He noted that the Ministry of Manpower conducts 5,000 yearly Workright inspections and takes enforcement actions, including fines and prosecution, for severe or systemic lapses. Regarding burnout, the Minister stated that while no specific studies on overtime non-compliance exist, legislative safeguards under the Employment Act and Workplace Safety and Health Act protect worker well-being. These safeguards include mandatory weekly rest days, work hour limits, and requirements for employers to conduct risk assessments to manage employee fatigue and workload.
Transcript
34 Mr Gerald Giam Yean Song asked the Minister for Manpower (a) in the past three years, how many cases of inflated job titles to avoid paying overtime have been investigated and what proportion of such cases are substantiated; (b) what are the safeguards to prevent such practices and whether targeted audits are planned; (c) whether the Ministry has conducted studies to assess the impact of non-compliance with overtime regulations on burnout among workers; and (d) what enforcement measures are being considered to combat this issue.
Dr Tan See Leng: The prevalence of misclassification to avoid paying overtime pay remains low. In the past three years, the Tripartite Alliance for Dispute Management (TADM) received an average of 45 claims per year from employees who felt they were misclassified and denied of overtime. This can include cases where the employee felt that their job titles were being inflated. TADM found about 30% of these claims to be valid and employers were advised to make due compensation. In handling such cases, the employee's job title is not a relevant factor. Rather, each case is assessed individually based on the specific scope of the job, such as the level of decision-making powers in managing a business function.
To safeguard against the non-payment of overtime pay and other breaches of employment laws, the Ministry of Manpower (MOM) regularly conducts Workright outreach campaigns and around 5,000 Workright inspections yearly to check on employers' compliance with the Employment Act. Employers found to have lapses will be referred to Employment Act clinics for training and rectification. If the lapses identified are more severe or systemic, we will take a strong stance and more serious enforcement actions, such as fines and prosecution, will be taken.
On the issue of overtime leading to burnout, MOM has so far not conducted studies to assess how non-compliance with overtime regulations impacts burnout. Nonetheless, we have put in place various legislative safeguards to protect the well-being of workers and ensure that they have sufficient rest. For example, employers must provide one rest day per week and are restricted from contractually binding employees to work more than eight hours in one day or more than 44 hours in one week. Under the Workplace Safety and Health Act, employers are also required to conduct proper risk assessment of work activities and manage their employees' workload and work shift so as to manage fatigue.