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Employment Act 1955 (2012 revision), Page 3

PART III - PAYMENT OF WAGES

Wage period

18. (1) A contract of service shall specify a wage period not exceeding one month.

(2) If in any contract of service no wage period is specified the wage period shall for the purposes of the contract be deemed to be one month.

Time of payment of wages

19. (1) Subject to subsection (2), every employer shall pay to each of his employees not later than the seventh day after the last day of any wage period the wages, less lawful deductions earned by such employee during such wage period.

(2) Wages for work done on a rest day, gazetted public holiday referred to in paragraphs 60D(1)(a) and (b) and overtime referred to in section 60A shall be paid not later than the last day of the next wage period.

(3) Notwithstanding subsections (1) and (2), if the Director General is satisfied that payment within such time is not reasonably practicable, he may, on the application of the employer, extend the time of payment by such number of days as he thinks fit.

Payment on normal termination of contract

20. The wages, less lawful deductions, earned by but not yet paid to an employee whose contract of service terminates in accordance with subsection 11(1) or of section 12 shall be paid to such employee not later than the day on which such contract of service so terminates.

Payment on termination of contract in special circumstances and on breach of contract

21. (1) Where an employer terminates the contract of service of an employee without notice in accordance with subsection 13(1) or (2) and paragraph 14(1)(a)—

(a) the wages, less any deductions which the employer is entitled to make under section 24, earned by such employee up to and including the day immediately preceding the day on which the termination of the contract of service takes effect; and
(b) in addition, where the employer terminates the contract of service under subsection 13(1), the indemnity payable to the employee under that subsection,

shall be paid by the employer to the employee not later than the day on which such contract of service is so terminated.

(2) Where an employee terminates his contract of service with an employer without notice in accordance with subsection 13(1) or (2) or subsection 14(3), the wages, less any deductions which the employer is entitled to make under section 24, earned by such employee up to and including the day immediately preceding the day on which the termination of the contract of service takes effect shall be paid by the employer to the employee not later than the third day after the day on which the contract of service is so terminated.

Limitation on advances to employees

22. (1) No employer shall during any one month make to an employee an advance or advances of wages not already earned by such employee which exceeds in the aggregate the amount of wages which the employee earned in the preceding month from his employment with such employer, or if he has not been so long in the employment of such employer, the amount which he is likely to earn in such employment during one month, unless such advance is made to the employee—

(a) to enable him to purchase a house or to build or improve a house;
(b) to enable him to purchase land;
(c) (Deleted by Act A1419);
(d) to enable him to purchase a motorcar, a motorcycle or a bicycle;
(da) to enable him to purchase shares of the employer’s business offered for sale by the employer;
(db) to enable him to purchase a computer;
(dc) to enable him to pay for medical expenses for himself or his immediate family members;
(dd) to enable him to pay for daily expenses pending receipt of any periodical payments for temporary disablement under the Employees’ Social Security Act 1969 [Act 4];
(de) to enable him to pay for educational expenses for himself or his immediate family members;
(e) for any other purpose—
(i) in respect of which an application in writing is made by the employer to the Director General;
(ii) which is, in the opinion of the Director General, beneficial to the employee; and
(iii) which is approved in writing by the Director General, provided that in granting such approval, the Director General may make such modifications thereto or impose such conditions thereon as he may deem proper;
(f) for such other purpose as the Minister may, from time to time, by notification in the Gazette, specify either generally in respect of all employees, or only in respect of any particular employee, or any class, category or description of employees.

(2) For the purposes of this section, .immediate family members. means the employees’ parents, children, siblings or any other person under the employee’s guardianship.

Wages not due for absence from work through imprisonment or attendance in court

23. Wages shall not become payable to or recoverable by any employee from his employer for or on account of the term of any sentence of imprisonment undergone by him or for any period spent by him in custody or for or on account of any period spent by him in going to or returning from prison or other place of custody or for or on account of any period spent by him in going to, attending before or returning from a court otherwise than as a witness on his employer’s behalf.

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