HRSINGAPORE Community Discussions

QUESTION

Dear Fellow HR Practitioners,

From the past discussions, I realise that many of us have staff on no pay leave during this period.

My question is about benefits like medical reimbursement and insurance etc.

Are the benefits of staff who are on furlough frozen?

Or are they still entitled to benefits under the employment act or employment contract?

Appreciate sharing from all.

Thank you.

Susan

REPLIES & COMMENTS

Hi Susan

The benefits are not frozen. Everything still remains like salary, insurance etc.

This is because the person is still under the employment of the company.

But is on no pay leave due to the current situation.

This is the case in our company.

Koshu

Hi Susan,

As long as staff are still on the payroll and are employed, they are entitled to benefits like medical and insurance coverage whether they are on furlough or no pay leave.

Under normal situations, staff granted furlough are still paid a salary and their period of absence does not impact their 13th-month annual wage supplement (AWS) if any.

During the furlough, staff are usually encouraged to pursue higher studies or pick up a good skill for work enhancement.

For staff on no pay leave, their period of absence will surely affect the calculation of the AWS.

Furlough and no pay leave are not an entitlement and usually treated on a case-by-case basis by the management unless there is an existing policy in the company.

However, during Covid-19, no pay leave is implemented to recoup from financial losses and manage the downturn in the business due to the effects on the economy.

Christina