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DIRECTORY OF SINGAPORE PROCESS & CHEMICALS INDUSTRIES 2021/2022
EVENT HIGHLIGHTS |
“Bringing members closer to Share, Learn and Grow Together”
Knowledge, Education, Experience & Networking (KEEN)
UNDERSTANDING PART 10A OF COTMA
In view of increased manpower cost due Contract parties are to negotiate and
to a shortage of migrant workers caused
by the COVID-19, the government had introduced an additional legislative relief under Part 10A of the COVID-19 (Temporary Measures) Act 2020 (“COTMA”) to ensure that all parties along the value chain step up to co-share the increased costs.
To help members better understand the legislation, ASPRI organised a webinar led Mr David Shanmugam, Counsel of Netto & Magin LLC which covered its purpose and how it can help members better manage manpower costs.
Participants learned that in the context of Part 10, “foreign manpower salary costs” refers to the remuneration – including bonuses, allowances, and overtime payments – payable to individuals who are neither citizens or permanent residents of Singapore holding a work permit. This excludes any quarantine, insurance or miscellaneous test costs.
adjust contract sums to take into account the increased foreign manpower salary costs incurred. If the negotiation is successful, there is no need to apply for this relief and parties may proceed to adjust contract sum as negotiated.
However, if the negotiation is unsuccessful, the contractor can seek determination from an Assessor. The contractor must show documentation of reasonable attempts at negotiation. Examples of documents can include meeting minutes, correspondence and recordings of such attempts. The Assessor will then conduct the necessary checks for eligibility.
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