Employment Act 1968 · 2020 Revised Edition · Part 4 · Rest Days, Hours of Work and Other Conditions of Service
48. Payment of annual wage supplement or other variable payment
Feedback & supportWhere a contract of service or collective agreement made before 26 August 1988 provides for the payment by the employer of any annual wage supplement, annual bonus or annual wage increase, the payments continue to be payable by the employer until the employer and the employer’s employees or a trade union representing the employer’s employees have negotiated and agreed to vary the payments.
contract of service
“contract of service” means any agreement, whether written or oral, express or implied, whereby one person agrees to employ another as an employee and that other agrees to serve his or her employer as an employee and includes an apprenticeship contract or agreement;
An employer and the employer’s employees or a trade union representing the employer’s employees may negotiate for and agree to a variable payment based on the trading results or productivity or on any other criteria agreed upon by the parties concerned.
employer
“employer” means any person who employs another person under a contract of service and includes —(a)the Government in respect of such categories, classes or descriptions of officers or employees of the Government as are declared by the President to be employees for the purposes of this Act;(b)any statutory authority;(c)the duly authorised agent or manager of the employer; and(d)the person who owns or is carrying on or for the time being responsible for the management of the profession, business, trade or work in which the employee is engaged;
Where an employer has not paid any annual wage supplement prior to 26 August 1988, any contract of service or collective agreement made on or after that date between the employer and the employer’s employees or a trade union representing the employer’s employees must not contain a provision for the payment of an annual wage supplement exceeding the equivalent of one month’s wages of the employees.
annual wage supplement
“annual wage supplement” means a single annual payment to employees that is supplemental to the total amount of annual wages earned by them, whether expressed as a percentage thereof or otherwise;
Any person who, or any trade union of employees which, requests (whether orally or in writing) or invites negotiations for the payment by an employer of an annual wage supplement which is in excess of the amount specified in subsection (3) and any employer who pays an annual wage supplement exceeding the amount specified in subsection (3) shall be guilty of an offence.
Even though an annual wage supplement may be payable under subsection (1) or (3), an employer may, in the event of exceptionally poor business results for any year, invite the employees or a trade union representing the employer’s employees to negotiate for a lower quantum of annual wage supplement or for no annual wage supplement to be paid for that year.