Attention to the use and protection of personal data has gained greater awareness with the establishment of the Personal Data Protection Commission (PDPC) since 2012. The PDPC can impose financial penalties on companies that breach the Personal Data Protection Act (PDPA) up to a fine of either $1 million or 10% of their annual turnover for companies with a local turnover exceeding $10 million. This highlights the need for companies to have more accountability in the management of personal data.
There are certain employee details that may be required to be collected by law, and this article discusses what they are so that employers or human resource (HR) personnel, who perform the key duty of collecting and maintaining personal information of all the employees hired in an organisation, are able to collect the necessary information and maintain their employee records accurately.
Collection Of Data Must Comply With The Personal Data Protection Act (PDPA)
The PDPA sets the baseline standards of protection for personal data, which refers to data held by an organisation about an individual who can be identified from it, in Singapore.
The PDPA recognises both the need to protect individuals’ personal data and the need for organisations to collect, use, or disclose personal data for legitimate and reasonable purposes.
Read Also: 6 Interview Questions to Ask Potential Employees (And The Reasons For Doing So)
Companies Must Seek Consent To The Collection Of Personal Data
Companies must obtain the consent of individuals for the collection of their personal data and inform them of the purpose of collecting, using, and disclosing the information.
Furthermore, in the event of supplying a product or service to an individual, the collection of personal data, use, or disclosure should not be beyond what is reasonable to provide the product or service to them.
Companies must ensure that reasonable security arrangements are in place to protect the personal data of individuals’ collected and ensure that the information is accurate and complete. Companies are also required to dispose personal data when it is no longer necessary for it to be retained for legal or business purposes.
Read Also: Why Employees’ Last Drawn Salary Still Matters To Hiring Managers
Employee Records That Companies Must Collect And Retain
Once a candidate is confirmed or hired, the company must collect the following records by law for record-keeping:
Personal Information: This information relates to the identity of the employee.
- NRIC Number
Companies should only require employees to provide their NRIC number once the candidate is hired in order to maintain detailed records of employees under the Employment Act. It is not a requirement for employees to provide their NRIC number during the initial job application process, unless required by law.
- Date Of Birth
- Gender
Contact Information: Thisinformationrelates to theability for the company to contact the employee.
- Home Address
Though not required by law, the company may also request to collect the following information as an additional means to contact the individual or parties related to them in times of emergency.
- Email Address
- Handphone Number
- Next Of Kin Contact Details
Employment Contract Terms: This information relates to the employment contract between the company and the employee.
- Date Of Starting Employment
- Date Of Leaving Employment
- Working Hours, Including The Duration Of Meals And Tea Breaks
- Dates And Other Details Of Public Holidays And Leave Taken
Salary Records That Companies Must Collect And Retain
As employers must issue itemised pay slips to employees covered under the Employment Act, the following salary-related information must be collected and retained by the company. This information is usually included in the pay slip, which must be provided together with the salary payment or within 3 working days of the salary payment.
- Full Name Of Employer
- Full Name Of Employee
- Day Of Payment (or dates, if the pay slips consolidate multiple payments)
- Basic salary
- For hourly, daily or piece-rated workers, all of the following must be included:
- Basic rate of pay, e.g. $X per hour
- Total number of hours or days worked or pieces produced
- Start And End Date Of Salary Period
- Allowances Paid For Salary Period, such as:
- All fixed allowances, e.g., transport
- Total ad-hoc allowances, e.g., one-off uniform allowance
- Any Other Additional Payment For Each Salary Period, such as:
- Bonuses
- Rest day pay
- Public holiday pay
- Deductions Made For Each Salary Period, such as:
- All fixed deductions (e.g., employee’s CPF contribution)
- All ad-hoc deductions (e.g., deductions for no-pay leave, absence from work)
For employees that have overtime pay, the following information should be included in their pay slips:
- Overtime Hours Worked
- Overtime Pay
- Net Salary Paid In Total
Additionally, though it is not required by law, companies may also request an employee’s bank account details to facilitate payroll and direct deposit of salary.
Read Also: Guide To Probation Period For Employees In Singapore (And What Employment Rights They Have)
Additional Records To Be Kept
Another record that companies must retain for a recently hired employee is the interview and job offer records. It must be kept for at least one year in the event that a complaint of discriminatory hiring is made against the company.
If the company is unable to provide documents to support its fair hiring practices, it may implicate the company as having committed unfair hiring practices.
Maintain Employment Records In Soft Or Hard Copy
For the records that employers collect and maintain of the employees covered under the Employment Act, they can be in either soft or hard copy format. Companies must keep the latest two-year records for current employees. For ex-employees, companies must retain the latest two-year record for one year after the employee leaves employment.
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