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MOM on exemptions granted to employers from the overtime limit under Singapore's Employment Act

MOM on exemptions granted to employers from the overtime limit under Singapore's Employment Act

On average, the Ministry of Manpower receives complaints about 50 employers annually for exceeding the 72-hour monthly overtime limit, taking enforcement action against approximately 25% of these cases.

Over the past five years, a total of about 245 employers in Singapore were granted exemptions from the overtime limit of 72 hours per month under Section 41A of the Employment Act.

Of the lot, 165 employers were repeat applicants, according to the Ministry of Manpower (MOM).

Responding to a Parliamentary query on Tuesday (4 February 2025), MOM said grants overtime exemptions under strict conditions to employers who demonstrate genuine operational needs. These conditions involve ensuring employees' consent have been obtained; that the employer has a good track record of maintaining employment standards and employees' health and safety, and that they have secured the union's agreement in the case of a unionised company.

In a separate response, MOM addressed concerns regarding illegal overtime practices. It noted that approximately 5,000 Workright inspections are conducted annually to monitor employers’ compliance with employment laws, including regulations limiting overtime to 72 hours per month. Employers found in violation are directed to Employment Act clinics for training and corrective measures. In cases of severe or systemic breaches, MOM imposes stricter enforcement actions such as fines and prosecutions.

"Our calibrated enforcement efforts have been effective. In the past five years, there was no uptrend of cases involving excessive overtime, neither overall nor in any particular sector," the Ministry highlighted.

On average, it receives complaints about 50 employers annually for exceeding the 72-hour monthly overtime limit, taking enforcement action against approximately 25% of these cases.

Finally, in response to a query on the prevalence of deliberate under-reporting of overtime hours by employers of non-domestic migrant workers, MOM affirmed that that it monitors non-compliance with overtime pay requirements.

This includes instances where employers under-report overtime hours or underpay for overtime work. For minor breaches due to lack of awareness, MOM adopts an educational approach, with employers typically cooperating to rectify the issues. However, in egregious cases, the ministry takes a firm stance, which can include fines and prosecution.

Over the past five years, MOM has annually taken action against about 40 employers for underpayment or non-payment of overtime and about 10 employers for issuing inaccurate payslips.

The ministry encouraged employees who are not compensated for their overtime work or receive inaccurate payslips to seek assistance from MOM or file claims with the Tripartite Alliance for Dispute Management.

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