OVERTIME EXEMPTIONS FOR SECURITY GUARD AGENCIES

OVERTIME EXEMPTIONS FOR SECURITY GUARD AGENCIES

9.

Ms Sylvia Lim asked the Minister for Manpower in light of the overtime exemptions granted by the Commissioner of Labour to certain security guard agencies (a) what is the precise nature of the overtime exemptions, particularly (i) the number of hours of overtime allowed; (ii) the rate of pay; and (iii) impact on rest hours; and (b) whether the time periods of six months to two years for exemptions are liable for extension and, if so, on what grounds are these extensions granted.

Dr Ng Eng Hen: Eighty-one companies in the security sector have been exempted from section 38(5) of the Employment Act. This exemption allows their employees to work more than 72 hours of overtime a month. However, the employees would still not be permitted to work more than 12 hours a day. Typically, the number of overtime hours worked per month for a security guard ranges from 88 to 112 hours.

Of the 81 agencies, 21 are additionally exempted from sections 38(8) and 40(3). For such exemptions, MOM has allowed their employees to work more than 12 hours but not exceeding 14 hours in a day.

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No security guard agencies have been exempted from the requirement to pay 1.5 times the basic hourly rate of pay for overtime hours worked.

No exemptions have been granted to companies from the obligation to provide rest breaks in accordance with section 38(1) of the Act. The Act stipulates a break for every six hours of work. If the employee is required to work continuously for a longer period, he may work for eight consecutive hours inclusive of a minimum rest period of 45 minutes. The employer also cannot compel an employee to work the entire week without a rest day.

Exemptions from the relevant overtime provisions are renewable upon application. The criteria for renewal are the same as those for the initial application, namely: (i) obtain the consent of employees in extending their overtime hours, (ii) comply with other Employment Act provisions, (iii) have a good track record for maintaining both safety and health as well as employment standards, and (iv) secure the agreement of the unions in the company, if any.

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