Part of a comprehensive analysis of the Employment Act 1968
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Joint and Several Liability of Principals, Contractors, and Subcontractors under Sections 65 and 66 of the Employment Act
In Singapore’s Employment Act 1968, Sections 65 and 66 play a critical role in safeguarding the rights of workmen engaged under complex employment arrangements involving principals, contractors, and subcontractors. These provisions establish a framework of joint and several liability for salary payments, mandate registration requirements for contractors and subcontractors, and provide mechanisms for dispute resolution. This article analyses the key provisions, their purposes, relevant definitions, penalties for non-compliance, and cross-references to other legislation, providing a comprehensive understanding of this important part of the Employment Act.
Section 65: Joint and Several Liability for Salary Payment
Section 65(1) of the Employment Act establishes the principle of joint and several liability among the principal, contractor, and any subcontractor for the payment of salary to workmen. This means that all parties involved in the employment chain are equally responsible for ensuring that the workman receives due remuneration, regardless of the direct employment relationship.
"the principal and the contractor and any such subcontractor (not being the employer) are jointly and severally liable with the employer to pay the workman as if the workman had been immediately employed by the principal" — Section 65(1), Employment Act 1968
Verify Section 65 in source document →
The rationale behind this provision is to prevent principals and contractors from evading their financial obligations by hiding behind subcontracting arrangements. By imposing joint and several liability, the statute ensures that workmen have multiple avenues for recovering unpaid salaries, thereby enhancing their protection and reducing the risk of non-payment.
Section 65(5) further clarifies the scope of the term "principal," explicitly including the Government or statutory bodies acting in the discharge of their functions.
"The reference to principal in this section includes a reference to the Government or a statutory body or authority acting in the course of or in the discharge of its functions." — Section 65(5), Employment Act 1968
Verify Section 65 in source document →
This inclusion ensures that public sector entities are equally accountable under the joint liability framework, reflecting the Act’s comprehensive coverage across both private and public employment sectors.
Section 65(2): Mediation and Claims Procedures
To facilitate dispute resolution, Section 65(2) requires a workman seeking to recover salary from any liable party to first submit a mediation request to the Commissioner before lodging a formal claim under the Employment Claims Act 2016.
"A workman who wishes to recover any salary from a person liable under this section for the salary must, before lodging a claim for the salary under section 13 of the Employment Claims Act 2016, submit to the Commissioner, under section 3(1) of that Act, a mediation request for the mediation under Part 2 of that Act of every dispute for which the claim will be lodged." — Section 65(2), Employment Act 1968
Verify Section 65 in source document →
This procedural requirement promotes early dispute resolution through mediation, which is less adversarial and more cost-effective than formal litigation. It also aligns with Singapore’s broader policy of encouraging amicable settlements in employment disputes.
Section 66: Registration and Employer Status of Contractors and Subcontractors
Section 66 imposes a mandatory registration regime for contractors and subcontractors, empowering the Minister to require registration by notification in the Gazette.
"The Minister may, by notification in the Gazette, require all contractors and subcontractors to be registered with the Commissioner and thereafter a person must not act as a contractor or a subcontractor unless the person is so registered." — Section 66(1), Employment Act 1968
Verify Section 66 in source document →
This registration requirement serves several purposes. It enables the Commissioner to maintain oversight of contractors and subcontractors, ensuring compliance with employment laws. It also facilitates enforcement actions and the identification of responsible parties in cases of salary disputes.
Moreover, Section 66(3) deems every registered contractor or subcontractor to be the employer of the workmen they employ.
"Every person so registered under this section as a contractor or subcontractor is deemed to be the employer of the workmen employed by that person." — Section 66(3), Employment Act 1968
Verify Section 66 in source document →
This deeming provision clarifies the employment relationship for legal purposes, ensuring that contractors and subcontractors cannot evade employer responsibilities by relying on their status as intermediaries. It also facilitates the application of employment protections and obligations directly to these parties.
Penalties for Non-Compliance under Section 66(7)
To enforce the registration requirement, Section 66(7) stipulates that any person acting as a contractor or subcontractor without registration commits an offence.
"Any person who contravenes this section shall be guilty of an offence." — Section 66(7), Employment Act 1968
Verify Section 66 in source document →
This penalty provision underscores the seriousness of the registration obligation and acts as a deterrent against unregistered contracting activities. It ensures that all contractors and subcontractors operating in Singapore are subject to regulatory oversight and employment law compliance.
Definitions and Interpretations
While this Part of the Employment Act does not provide explicit definitions for terms such as "principal," "contractor," "subcontractor," and "workman," their usage throughout the provisions is consistent with common legal and industry understandings. Notably, the Act clarifies that the term "principal" includes government entities and statutory bodies, as discussed above.
The absence of explicit definitions within this Part allows for flexibility in applying the provisions to a wide range of employment arrangements, while the inclusion of government and statutory bodies ensures comprehensive coverage.
Cross-References to Other Legislation
Section 65(2) cross-references the Employment Claims Act 2016, specifically sections 3(1) and 13, which govern mediation requests and claims procedures respectively.
"A workman who wishes to recover any salary from a person liable under this section for the salary must, before lodging a claim for the salary under section 13 of the Employment Claims Act 2016, submit to the Commissioner, under section 3(1) of that Act, a mediation request for the mediation under Part 2 of that Act of every dispute for which the claim will be lodged." — Section 65(2), Employment Act 1968
Verify Section 65 in source document →
This linkage ensures procedural consistency and integration between the Employment Act and the Employment Claims Act, streamlining dispute resolution processes and reinforcing the statutory framework protecting workmen’s salary claims.
Conclusion
Sections 65 and 66 of the Employment Act 1968 are pivotal in ensuring that workmen engaged through contractors and subcontractors receive their rightful salaries. By imposing joint and several liability on principals, contractors, and subcontractors, mandating registration, and integrating mediation procedures, these provisions create a robust legal framework that protects workmen’s interests and promotes compliance among employers and intermediaries. The inclusion of government and statutory bodies within the definition of principals further broadens the scope of accountability, reflecting the Act’s comprehensive approach to employment protection.
Sections Covered in This Analysis
- Section 65(1), (2), (5) – Joint and Several Liability; Mediation Procedures; Definition of Principal
- Section 66(1), (3), (7) – Registration of Contractors and Subcontractors; Employer Status; Offences
Source Documents
For the authoritative text, consult SSO.