Gluu

19/11/2016

Businesses and Start-ups with Employment Pass ("EP") holders in senior positions please take note.

On 7 November 2016, the Ministry of Manpower has confirmed the requirement to obtain its approval prior to the appointment of an Employment Pass ("EP") holder who is employed by Company A to the Board of Directors of another company (Company B).

Company B has to submit a Request Form to MOM. The MOM will take about 5 weeks to process the request. A Letter Of Consent will be granted to the EP holder in the event of an approval.

Companies which have already appointed EP holders who hold an EP issued under another company to their Board of Directors without having obtained approval from the MOM should complete and submit the Request Form as soon as possible.

28/08/2016

So what can I do if my customer receives my goods but defaults on payment? Other than suing his pants off, can we actually suspend our supply of goods and services?
http://gluu.asia/must-i-continue-supplying-if-my-customer-defaults-in-payment/

So you have closed a sale to supply certain goods/services over a period of 6 months to a customer. Price has been agreed and payment was to be in 6 equal monthly instalments. Well done. Unfortunately, despite supplying the goods/services for 3 months without complaints, the customer managed only to...

04/06/2016

Privileged to be part of a very informative round-table discussion on start-ups.

Insider tips on raising funds for your business.

07/05/2016

The PDPC recently released its report on the enforcement actions taken against businesses which flout the Personal Data Protection laws (PDPA). It has been two years since the PDPA came into force and clearly, the honeymoon period is over.

In all my interactions with business owners, most if not all do not realise that it is a legal requirement for businesses holding and using personal data to implement a personal data protection policy (not to be confused with the privacy policy on your website) and to train its staff on the terms of that policy as well as the PDPA.

Another not so well known fact is that even third party service providers servicing their clients must know and comply with some aspects of the PDPA if their clients hold and use personal data.

In its report, the PDPC highlighted the above and looked at some factors which it will consider when determining the severity of the infringement (and accordingly, the severity of the "punishment"). Hope you will enjoy this latest post. http://gluu.asia/errant-businesses-rapped-for-breaches-of-personal-data-requirements/

The Personal Data Protection Commission (“PDPC”) recently released a record documenting various enforcement actions it has taken against businesses which have breached the requirements of the Personal Data Protection Act (“PDPA”). It has been close to 2 years since the PDPA has come into force in Si...

30/04/2016

Another LWP (Long Winded Post) in the Joint Venture Checklist series. Hope you will enjoy this as much as you enjoy Labour Day ; ) http://gluu.asia/joint-venture-checklist-2-choosing-the-vehicle/

Choosing the joint venture vehicle As explained in our earlier post ( http://gluu.asia/joint-venture-checklist-1/ ), parties wishing to enter into a joint venture have a number of choices of structure available to them. The choice of structure depends on the circumstances of the parties. The most c…

18/04/2016

Almost everyone is a "consultant" or a "trainer" these days. But aren't we all looking for people who not only provide creative solutions but also solutions which are business focused and not just technical/theoritical ? Trouble is, creative, sharp and business focused guys are usually very expensive and very busy. And so we end up talking to their green assistants who - as the article below shows - are more "in-box thinkers" adept at only dishing out textbook answers.

A good consultant can answer the client's questions. But a better one will tell the client what questions to ask and correct him for asking the wrong ones. Because ultimately, clients don't know what they don't know. And that's why they need you. Right?
http://www.singaporelawwatch.sg/slw/headlinesnews/80652-wanted-creative-local-lawyers.html .4t4aJm9d.dpbs

Singapore Law Watch is a free daily legal news service for the law community in Singapore and abroad.

09/04/2016

I was just having lunch with a business owner the other day. He just entered into a joint venture with several "partners" on a new business and was appointed the Managing Director. He said he has been working very hard to boost sales and expand his business. After a few casual questions, I found out that:
a. he is drawing only a token salary. In fact, there is no employment contract signed.
b. when asked why, his answer was "I am shareholder what! So if the business does well, I will also benefit!"
c. he is a minority shareholder (less than 20%) and one of five directors on the Board. There is no joint venture or shareholders agreement signed There is also no dividend policy drawn up and agreed.

My friend is a joint venture partner and is looking to grow the business. If he is successful, and the business grows, that is good. But does my friend really have any assurance he will benefit from the growth? Think about it. He is outvoted as a shareholder. There is no shareholders agreement to protect his minority interests. He is outvoted as a director. And there isn't even any assurance of a divided even if the business is profitable. And if the business fails, well, guess who is to be blamed. And who will own the goodwill, know-how and IP which my friend had worked so hard to create?

There are thousands of business owners who are in this position today. I know because I am helping a lot of them "stuck in s**t creek without a paddle". In a good market, who cares? But in a challenging one, you'd better care.

Many business owners today enter into "joint ventures" or collaboration this way. I am not saying it is the wrong way. But I am saying that they should at least ask the right questions and tick the boxes first and then go forward with eyes open.

But how would we know the right questions to ask when embarking on a joint venture? Well, you don't unless you find out. To help all business owners, I will share my thoughts on what should be in a joint venture checklist. Today's post is an introduction. More will follow. http://gluu.asia/joint-venture-checklist-1/

Interpreted broadly, a joint venture denotes two or more persons or businesses entering into a business venture together. As they say, you can’t walk alone and to compete effectively, every business will enter into some sort of joint venture in the course of its “life”. Joint ventures can be categor…

01/04/2016

A good read if you are doing business in countries within ASEAN. Or intend to do so ; ) http://www.singaporelawwatch.sg/slw/headlinesnews/79744-navigating-legal-minefields-in-asean.html .G6yoNlZR.dpbs

Singapore Law Watch is a free daily legal news service for the law community in Singapore and abroad.

01/04/2016

There is a lot happening on 1 April 2016 which has nothing to do with April foolishness. Find out what in my latest blog post which I hope you will enjoy reading ; ).http://gluu.asia/employment-contracts-checklist/

With effect from 1 April 2016 (yes, that’s tomorrow!), there will be a new requirement for all employers to issue their employees a written record of their key employment terms within 14 days from the commencement of their employment. But take note of the following points. First, the above requireme…

25/03/2016

Did you know that from 1 April 2016, all employers in Singapore will be required to issue written Key Employment Terms and Itemised Payslips to their employees who fall within the Employment Act ? You may already be doing that but read on to check if the contents of your document complies with what is required under the law.
http://gluu.asia/important-changes-to-employment-law-wef-1-april-2016/

From 1 April 2016, all employers in Singapore will be required to issue Key Employment Terms and Itemised Payslips to their employees who fall within the ambit of Singapore’s Employment Act. This latest change is part of the continuing effort of the Ministry of Manpower to ensure that employees are…

12/03/2016

In the situation highlighted in my last post, the employer is almost certainly able to terminate the employee immediately since it can be said that such conduct is a wilful breach of the employment contract or inconsistent with the fulfilment of the express or implied conditions of the employment contract.

Even if your employment contract does not contain terms which prohibit your employees from doing acts which affect your business or compete with your business (you should include such terms if you haven't), the law implies a duty of fidelity into most contracts of employment which will be breached by such conduct.

A recent Court of Appeal decision however made it plain that in the absence of provisions in the contract of employment, the employer cannot simply withhold salary just because the employee did wrong.

However, if the employer can prove that the employee's breach had caused the company to lose money (e.g. profits) arising from the business diversion, there is nothing to stop the employer from setting-off that loss against the employee's salary.

It may also come as a relief to employers that the Court of Appeal also stated that even if the employer is finding hard to prove the loss suffered due to the employee's conduct in diverting business away from the company (e.g. due to evidentiary difficulties), it does not mean it cannot claim anything. In such cases, the court can step in and assess the damages on its own. It can even assess and make the employee pay for future losses due to his breach.

Please note however that for employees governed by the Employment Act, deductions cannot be made unless authorised under the Act. You have been warned ; )

I will talk a bit about shareholders and directors in another post. Like this post if you found it useful.

09/03/2016

A good read for all businesses which use customer data for marketing purposes.

http://www.singaporelawwatch.sg/slw/headlinesnews/78522-why-smes-need-data-protection.html .dPSTRis3.dpbs

Singapore Law Watch is a free daily legal news service for the law community in Singapore and abroad.