The recent case in which the Central Provident Fund (CPF) Board applied to recover nearly $417,000 in alleged CPF arrears from Jurong Country Club highlights the highly unsatisfactory state of the current legal distinction between employees and independent contractors Straits Times, 4 January 2019).

CPF Board takes a serious view on employers who do not fulfil their CPF obligations to their employees. More so, employers’ need to pay CPF contributions correctly and promptly for their employees. Therefore, does HR practitioners know the differences between ordinary wage, additional wages and total wages? What is the ceiling for ordinary and additional wages? Should overtime, back payment, transport allowance, meal reimbursement be paid by ordinary or additional wages? What are the common mistakes made by Payroll personnel when contributing CPF?

Upon detection of wrong payment or non-payment of CPF contributions, actions will be taken to recover the arrears or CPF contributions owed to employees. Interest on late payment and a composition amount may be imposed on the defaulting employer.

From the above, it is important that employers fulfil their CPF obligations to their employees. It is equally important that payroll administrators be able to process the payroll accurately and timely, and yet be able to understand the differences between the contract of service vs contract for service, ordinary vs additional wage, the rationale and basis of the legislation as to when, why and who should be paid.

The CPF Board and the Ministry of Manpower have also announced that they will continue to step up efforts to bring about greater compliance with the CPF Act and Employment Act to better protect employees.

At the end of this workshop, delegates can be assured that they will be more competent in their understanding of the CPF Act and its practical application.

Objective

1. Understand the background and purpose of the CPF Act.
2. Know the different types of CPF account.
3. Know the CPF contribution rates and what to be credited to the various accounts.
4. Explain under what situation or circumstances whereby CPF would be payable.
5. Contrast contract of service and contract for service.
6. Know the differences and types of wages.
7. Know which are the employee benefits that are taxable and non-taxable.
8. Know the limits on CPF contributions.
9. Know the various CPF schemes such as Special Employment Credit, Temporary Employment Credit, Wage Credit Scheme and Supplementary Retirement Scheme so that employers can reap the employee benefits, especially for low wage and older workers.
10. Know the different modes of e-payment for CPF.
11. Know the contribution for Skills Development Levy.
12. Know the common errors in CPF computation by HR practitioners.
13. Know the offences and penalties for infringement of the CPF Act.

Outline

A competent HR practitioner or Payroll Administrator must have the skills and knowledge in the following:

1. Understand the background and purpose of the CPF Act
• Overview of the CPF Act
• CPF Act versus CPF website information

2. Know the difference types of CPF and its purpose
• Ordinary account
• Special account
• Medisave account

3. Know the CPF contribution rates and what to be credited to the account
• CPF for Singaporeans
• CPF for Singapore Permanent Residence
• e-CPF Calculator and CPF rate booklets

4. Explain under what situation whereby CPF would be payable
• Multiple employers
• Students
• Part-timers and casual labourers
• Company directors
• Employees working overseas
• A foreigner on work passes

5. Contrast contract of service and contract for services
• Definition of contract of service and contract for service under common law
• Factors in determining the contract for service

6. Know the definition and type of wages
• Ordinary wages
• Additional wages
• Total wages
• Differences between allowances and reimbursement

7. List out the employee benefits that are taxable and non-taxable
• Accommodation benefit
• Car-related benefit
• Air passage
• Insurance premium

8. Know the limits on CPF contribution
• Ordinary wage ceilings
• Additional wage ceilings
• Voluntary CPF contributions

9. Assess the various CPF schemes in particularly for low wage and older employees
• Special Employment Credit
• Temporary Employment Credit
• Wage Credit Scheme
• Supplementary Retirement Scheme
• Workfare Income Supplement
• Workfare Training Support Scheme

10. Modes of e-payment by employers
• CPF e-submission by Web
• Other modes of e-submission

11. Know the contribution for Skills Development Levy and other CPF contributions
• Chinese Development Association Council (CDAC)
• Singapore Indian Development Association (SINDA)
• Mosque Building and Mendaki Fund (MBMF)
• Eurasian Community Fund (ECF)
• Foreign workers levy (FWL)
• Share programme

12. Know the common errors in CPF computation by HR practitioners
• Underpayment
• Overpayment
• Backpayment
• Non-payment / Late payment
• Submitting the wrong date/month

13. Know the offences and penalties for infringement of the CPF Act
• Enforcement by CPF Board Inspectors
• Powers of CPF Board Inspectors
• Minimum and maximum fines; and jail
• Salient points on amendments to CPF Act on November 2013

14. Review CPF case law
• PN electronic Pte Ltd v Public Prosecutor
• Ponggol Marina Pte Ltd v CPF Board (Public Prosecutor)

Who should attend

Human Resource Practitioners and Payroll Administrators.

Methodology

Lecture and case study.

Arthur Khong's Profile

Mr. Arthur Khong is the esteemed founder of HR Law Academy, a pioneering institution in Singapore specializing in employment laws and industrial relations. Departing from his role at Keppel Energy in June 2013, Arthur embarked on a mission to provide comprehensive training and consultancy services in the landscape of Singapore's employment laws and industrial practices.


Work Experience

Arthur first embarked on his career in human resource management with Western Digital in 1993. To-date, he has held several senior Human Resource positions including:

• Legal Counsel - Chugoku Marine Paints (S) Pte Ltd
• General Manager, Human Resources – Keppel Energy Pte Ltd
• Group Regional Vice President – Yeo Hiap Seng Ltd
• Director of Human Resource – Far East Organization, Hotel Group
• Director of Human Resource – Goodwood Park Hotel

In his 22 years’ career span in human resource management, Arthur has also held regional human resource responsibilities for overseas subsidiaries in Malaysia, Hong Kong, China, Brazil and USA. He is also experienced in industrial relations management as all the companies that he has worked for are unionised companies, some even with multiple unions.

Prior to embarking on his human resource management career, Arthur was with the Singapore Police Force as a Senior Police Officer.

University Lecturer

Arthur is currently an Adjunct Faculty with the Singapore University of Social Sciences (SUSS). He started his lecture stint at SUSS in 2009. He lectures on the following modules at SUSS:-

• Employment Laws and Legal Issues
• Employment and Industrial Relations
• Human Resource Management

In addition, Arthur is also an adjunct lecturer for SUSS where he lectures in contract law (Diploma in Management) and staffing and employee development (Graduate Diploma in HR Mgmt).

Workshop Leader

Arthur is also an active freelance workshop leader, having conducted numerous workshops in employment laws and industrial relations since 2007.

Author

Arthur is the author of :

1. The Human Resource Practitioners’ Guide to Employment Laws, the 4th edition (LexisNexis)
2. The Human Resource Practitioners’ Guide to Industrial Relations, the 1st edition (LexisNexis)
3. The Human Resource Practitioners’ Guide to Employment Contracts and HR policies and procedures, the 1st edition (HR Law Academy)

These guidebooks seek to outline the employment laws and industrial relations in Singapore in simple language to give HR Practitioners a better understanding of the rights and obligations of both the employer and the employee.

Educational Qualifications:

Arthur possesses the following educational qualifications:

• Bachelor of Arts (Economics) from University of Manitoba
• Bachelor of Laws (Honors) from University of London
• Graduate Diploma in Personnel Management from Singapore Institute of Management
• Diploma in Training and Development from Singapore Institute of Management
• Master of Management (HR Management) from Macquarie University
• Graduate Certificate in International Arbitration from National University of Singapore
• Advance Certificate in Training Assessment from Workforce Development Agency

Current Professional Affiliations

• Non-Practitioner Member of the Law Society of Singapore
• Fellow Member of Singapore Institute of Arbitrators

Past Professional Affiliations

• Member of Industrial Relations Panel of Singapore National Employers Federation (SNEF)
• Chairman of Industrial (Other Areas) Group of SNEF
• Council Member of Singapore Human Resource Institute (SHRI)