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Employment Contract in Singapore

Employment Contract in Singapore

The association between an employer and employee is mostly regulated by the employment contract in Singapore between the two parties. Commonly, according to the legislation in this country, the two of them are free to contract upon their own choice and any problems coming up between them would have to be solved by examining either the express and/or the implied terms of the respective contract. There are though certain limits imposed by the law. Our accountants in Singapore can provide more details on what these limitations are.

 Main elements of an employment contract in Singapore

A characteristic employment contract in Singapore must contain the following details:

  • Beginning of employment;
  • Employment title and purpose;
  • Hours of work;
  • Probation period, if applicable;
  • Payment – It’s likely that you’ll hire more employees as your company expands. To manage payroll, you must first understand what information is required for old and new employees. With the help of our specialized services, payroll in Singapore can be easy to complete and handle remotely, without you having to deal with all forms and accounting requirements.
  • Employee’s duties and benefits (for example yearly leave, sick leave, maternity leave)
  • End of contract – notice period; and
  • Conduct code (for example being on time, no alcohol during working hours).

Employment legislation in Singapore

The employment contract in Singapore is regulated by the employment legislation which derives both from the laws issued by the Parliament, like the Employment Act, and the common law, which is comprised of previous cases and precedents.

The Employment Act in Singapore

The Employment Act (EA) in Singapore applies to all employees – no matter what their nationality is – who are under an employment contract in Singapore with an employer, except:
•    an individual hired in a managerial or executive position who earns in excess of SGD 4,500 basic monthly payment;
•    any seaman;
•    any local worker; and
•    any individual hired by a Statutory Board or the Government.

The Section IV of the EA, which stipulates the provisions for rest days, hours of work and other conditions of employment, relates only to:

•    workmen who are remunerated maximum SGD 4,500 basic monthly payments; and
•    non-workmen covered by the EA who are remunerated maximum SGD 2,500 basic monthly payment.

However, the above-mentioned Section does not cover individuals hired in a managerial or executive position. Our accountants in Singapore can give you more details on this matter.

Employees who work less than 35 hours per week are regulated by the Employment (Part-Time Employees) Regulations that deliver a certain flexibility for the employer as well as the employee, comprising the pro-rating of employment benefits, encashment of the yearly leave and others.

For more information, please contact our accounting firm in Singapore.