Navigating sick leave entitlement in Singapore can be tricky, especially for those unfamiliar with the Employment Act. This comprehensive guide clarifies your rights and responsibilities regarding paid sick leave, ensuring both employers and employees are well-informed.

Paid Sick Leave: Outpatient and Hospitalization

Singapore's Employment Act dictates paid sick leave, categorized into two types:

Paid Outpatient Sick Leave

This covers short-term illnesses not requiring hospitalization. The entitlement depends on your service length:

Paid Hospitalization Leave

This covers hospitalization, day surgery, bed rest, or quarantine. Entitlement is also service-dependent:

In summary: After 6 months, you're entitled to 14 days of outpatient and up to 60 days of hospitalization leave. Before 6 months, it's pro-rated.

Eligibility for Paid Sick Leave

To qualify for paid sick leave, you must:

• Be covered under the Employment Act.
• Have worked for at least 3 months.
• Inform your employer within 48 hours of absence (unless exceptional circumstances prevent this).

Medical Certificates (MCs)

A medical certificate (MC) from a registered Singaporean medical practitioner is mandatory for paid sick leave. The MC must include:

• Date of examination
• Diagnosis
• Expected duration of illness
• Doctor's registration details or clinic stamp

Failure to provide a valid MC can result in unpaid leave and potential disciplinary action.

Payment During Sick Leave

For both outpatient and hospitalization leave, you're paid at your gross rate of pay, excluding most bonuses, allowances (except for shift allowances in outpatient cases), and overtime payments.

Employer Responsibilities

Employers generally cannot refuse sick leave with a valid MC and proper notification. They are obligated to process requests fairly and protect employees from discrimination due to medical leave.

Unused Sick Leave

While unused sick leave generally does not carry over to the next year, employers may allow it based on employment contracts or company policies.

Sick Leave During Probation

Under Singapore's Employment Act, eligibility for paid sick leave requires at least 3 months of employment, applicable to all employees under the Act regardless of probation status.
However, employers may grant leave at their discretion during the first 3 months.

Hospitalization Leave and Outpatient Sick Leave

Hospitalization leave and outpatient sick leave are combined. The total entitlement for those with at least 6 months of service is capped at 60 days.

Exceeding Sick Leave Entitlement

Exceeding your entitlement results in unpaid medical leave. Discuss options with your employer, such as unpaid leave, alternative work arrangements, or a medical assessment.

Sick Leave for Part-Time Employees

Part-time employees are entitled to paid sick leave, pro-rated based on their working hours relative to a full-time employee's hours.

Conclusion

Understanding your sick leave entitlements is crucial for both employees and employers. By adhering to the Employment Act's guidelines, both parties can manage sick leave effectively and fairly. Always consult the official Employment Act for the most up-to-date and detailed information.

Navigating the compensatory leave in Singapore can be challenging. This guide clarifies the nuances of compensatory leave, addressing common queries and providing a comprehensive overview.

Understanding Compensatory Leave in Singapore

In Singapore, compensatory time off, often referred to as time off in lieu (TOIL) or comp time, is a common practice allowing employees to receive time off instead of overtime pay for working beyond their contractual hours. It's crucial to understand that this is not a legally mandated benefit for all employees.

Eligibility for Compensatory Leave

Eligibility for this type of leave isn't universal. Employees covered under Part IV of the Employment Act (workmen earning up to $4,500 per month and non-workmen earning up to $2,600 per month) are generally entitled to overtime pay. However, employees in managerial or executive roles often negotiate this leave provisions within their employment contracts or company policies.

How Compensatory Leave Works

• Accrual: Employees accumulate compensatory leave for working extra hours beyond their normal schedule.
• Calculation: The calculation method varies. It might involve banking the exact extra hours worked, accruing a percentage of annual working hours, or accumulating up to a rolling cap (e.g., a maximum of 20 hours within a 3-month period).
• Redemption: Employees request to use accrued leave, specifying dates and hours. Managers review requests, considering workload and deadlines, approving or denying them within a reasonable timeframe (e.g., 48 hours).
• Documentation: All compensatory leave arrangements should be documented in writing and recorded in the employee's personnel file.

Expiry of Compensatory Leave

Accrued leave doesn't last indefinitely. Employers typically set expiry periods (e.g., within the same calendar year, 6 months, or 12 months of accrual). This encourages timely usage and manages company liability.

Payment in Lieu of Unused Compensatory Leave

Upon employment termination, employers may compensate employees for unused leaves, calculated fairly according to the agreed-upon terms. This is not a mandatory practice.

Compensatory Leave vs. Compassionate Leave

It's important to distinguish between compensatory leave and compassionate leave (also known as bereavement leave).

Compassionate Leave

• Legal Entitlement: There's no statutory entitlement to compassionate leave in Singapore. It's entirely at the employer's discretion.
• Common Practices: Companies typically offer 2-5 days of paid or unpaid leave, depending on the relationship with the deceased.
• Policy Requirements: Employers should clearly define "immediate family member," specify the number of days offered, and require supporting documentation.

Compensatory Leave and Public Holidays

The rules for compensatory leave when working on public holidays differ based on Employment Act coverage:

• Employment Act Coverage (Part IV): Employees are entitled to additional pay, not compensatory leave. However, a replacement day off can be mutually agreed upon.
• Non-Employment Act Coverage (Part IV): Compensatory leave can be mutually agreed upon, or the employer may decide the duration based on hours worked on the holiday.

Key Considerations for Compensatory Leave

Is Compensatory Leave Mandatory in Singapore?

This leave is not a mandatory benefit for all employers in Singapore; however, exceptions apply, such as when an employee is required to work on a public holiday. In such cases, employers must provide either an extra day's salary or a day off in lieu, as mandated by the Employment Act.

Compensatory Leave for Part-Time Employees

Part-time employees in Singapore are entitled to overtime pay, not compensatory leave, for additional hours worked, as stipulated by the Employment Act. This applies to part-time employees earning up to S$2,600 for non-workmen and up to S$4,500 for workmen under Part IV of the Act. Overtime pay is calculated at no less than 1.5 times the basic hourly rate and is provided in monetary form, not as compensatory leave. However, this entitlement only applies to those covered under the relevant provisions of the Employment Act.

Payment for Unused Compensatory Leave Upon Resignation

Payment upon resignation depends on the employment contract. There's no automatic entitlement; it's often determined by mutual agreement or contract stipulations.

Employer's Right to Deny Requests

Employers can deny the requests based on the employment contract, company policies, operational needs (e.g., excessive simultaneous leave requests, impacting workload), notice periods, or probationary periods.

Applying for Compensatory Leave

• Confirm Eligibility: Check your company's policy or employment contract.
• Understand Policy: Familiarize yourself with the company's specific compensatory leave policy.
• Calculate Accrued Hours: Determine the number of accrued hours.
• Submit Formal Request: Provide details of extra hours worked and preferred leave dates to your supervisor.
• Approval Process: Await approval (typically within 48 hours).
• Record Keeping: Ensure the approval is documented and sent to HR.

Overtime Pay vs. Compensatory Leave

While both compensate for extra work, they differ significantly:

Mandatory for eligible employees under the Employment Act, but with exemptions for certain categories of workers such as managers, executives, domestic workers, and public servants.

This guide provides general information. Always refer to your specific employment contract and company policies for accurate and detailed information regarding compensatory leave in your workplace.

For employees in Singapore, understanding how CPF contributions impact bonuses is crucial. This article clarifies the rules and regulations surrounding CPF contributions for bonus payments, addressing common questions and concerns.

Calculating CPF Contributions on Bonuses

In Singapore, CPF contributions on bonus payments are governed by the concept of Additional Wages (AW) and the AW Ceiling. This ceiling determines the maximum amount of additional wages (including bonuses, leave pay, etc.) subject to CPF contributions per year.

Calculating the AW Ceiling

The AW Ceiling is calculated as follows:

AW Ceiling = $102,000 - Total Ordinary Wages (OW) subject to CPF for the year

For example:

• An employee earning $6,000 per month has total Ordinary Wages of $6,000 x 12 = $72,000.
• Their AW Ceiling would be $102,000 - $72,000 = $30,000.

Applying CPF Contributions to Bonus Payments

• If the bonus is less than or equal to the AW Ceiling, the entire bonus is subject to CPF contributions.
• If the bonus exceeds the AW Ceiling, only the amount up to the AW Ceiling is subject to CPF contributions. Any amount above this is exempt.

Example Scenarios

• Scenario 1: An employee earning $7,000 a month receives a $10,000 bonus. Their AW Ceiling is $30,000 ($102,000 - $84,000), so the entire bonus is subject to CPF contributions.
• Scenario 2: An employee earning $5,000 a month receives a $40,000 bonus. Their AW Ceiling is $42,000 ($102,000 - $60,000). Only $30,000 of the bonus will be subject to CPF contributions.

Contribution Rates

The CPF contribution rates vary based on the employee's age, citizenship or residency status, and the specific wage brackets. For Singapore Citizens and Singapore Permanent Residents (from the third year onwards), the employer typically contributes up to 17% and the employee up to 20% of wages subject to CPF. Exceptions include employees aged above 55, where rates differ, and Singapore Permanent Residents in their first and second years, who have graduated contribution rates.

Frequently Asked Questions

What is the cap on CPF contributions for bonuses?

The cap is the Additional Wage (AW) Ceiling. This is calculated as $102,000 minus the total Ordinary Wages subject to CPF for the year. Only bonuses up to this ceiling are subject to CPF contributions.

When do employers need to make CPF contributions for bonus payments?

CPF contributions for bonuses (Additional Wages) are typically made at the year-end or when the employee leaves the company. Employers recalculate the AW Ceiling at the year-end or with salary changes.

How is the CPF contribution calculated for variable bonuses?

Variable bonuses are treated as Additional Wages. The AW Ceiling is calculated, and contributions are made on the portion of the bonus up to this ceiling. Contribution rates for Additional Wages may differ based on the employee's age.

Are there different CPF contribution rates for annual bonuses versus monthly salary?

The contribution rates are the same for both. However, the application differs due to separate ceilings for Ordinary Wages (monthly salary) and Additional Wages (bonuses).

Can I opt out of CPF contributions on my bonus payment?

No. CPF contributions on bonuses are mandatory if the bonus falls under Additional Wages and is below the AW ceiling.

How does the Additional Wage Ceiling affect CPF contributions on bonuses?

The AW Ceiling sets the maximum amount of additional wages subject to CPF contributions. Bonuses above this ceiling are exempt from CPF contributions.

What happens if my employer fails to make CPF contributions on my bonus?

Employers face penalties including interest charges, fines, and potential enforcement action from the CPF Board. Employees can check their CPF statements and inquire with their employer.

Do foreigners working in Singapore need to make CPF contributions on their bonuses?

No. Foreigners working in Singapore are exempt from CPF contributions, including those on bonuses.

Conclusion

Understanding CPF contributions on bonuses is essential for both employers and employees in Singapore. By adhering to the guidelines outlined above, both parties can ensure compliance with CPF regulations and avoid potential penalties. Remember to always check your CPF statement and consult with the CPF Board or a financial advisor if you have any questions or concerns.

In 2024, singapore job market presents a dynamic landscape for both local and foreign professionals. While generally favorable, understanding the nuances is key to successful job hunting. This article delves into the current employment opportunities, in-demand industries, visa requirements, salary comparisons, common challenges, and essential resources for navigating this competitive yet rewarding market.

Is Finding a Job on current Singapore Job Market Easy?

Based on Q2 2024 data, the Singaporean job market shows positive signs, although certain sectors and skill sets are more sought after than others. The overall unemployment rate is low, and job vacancies remain high.

Labour Market Conditions

• Total employment grew significantly in Q2 2024, exceeding growth in Q1.
• Resident employment saw growth in key sectors like Financial and Insurance Services, Information and Communications, and Professional Services.
• Non-resident employment increased, driven by demand for lower-skilled roles in Construction and Manufacturing.

Job Vacancies and Unemployment

• A high number of job vacancies persisted in June 2024, indicating a tight labor market.
• Unemployment rates remained low across all categories (overall, resident, and citizen).
• Retrenchments increased slightly but remained low overall.

Singapore Job Market Outlook

The Ministry of Manpower (MOM) forecasts sustained labor market momentum, with continued growth in both wages and employment. Specific sectors, including those mentioned above, and events like the Formula One Singapore Grand Prix are expected to further boost employment.

In summary, while the job market is relatively favorable, success depends on aligning your skills and experience with the demands of specific sectors.

Most In-Demand Industries and Job Sectors

Singapore's job market is diverse, but some sectors are experiencing particularly strong growth and demand.

• Services Sector: The largest employer, with a significant number of vacancies across various sub-sectors.
• Public Administration & Education: High demand for teachers and administrative staff.
• IT & Other Information Services: Strong demand for technical and IT professionals.
• Financial Services: Experiencing high hiring, driven by growth in AI and quantum technologies.
• Healthcare & Social Services: Significant job openings, with growth in telehealth expected.
• Manufacturing: Facing challenges in 2024 but anticipating a recovery in 2025.
• Construction: Steady demand for construction and related services.
• E-commerce Logistics: Growing due to investments in new infrastructure and e-commerce recovery.
• Legal, Accounting & Management Services: Substantial number of job openings.

Minimum Qualifications and Requirements for Foreigners

Foreigners seeking work in Singapore must meet specific requirements depending on the type of work pass applied for.

Work Permit

• For unskilled or semi-skilled workers.
• Requires a specified source country.
• No specific educational or salary requirements, but employers have responsibilities regarding accommodation, insurance, and levies.

S Pass

• For mid-level skilled technical staff.
• Requires a degree, diploma, or technical certificate, plus work experience.
• Specifies a minimum monthly salary.

Employment Pass (EP)

• For professionals, managers, and executives.
• Requires a good university degree, professional qualifications, or specialist skills.
• Specifies a minimum monthly salary (increasing in 2025).
• Employers must meet the COMPASS points system.

General Requirements

• Minimum age requirement.
• Employers must apply for the work pass and meet all regulations.
• Employers must pay a monthly foreign worker levy.

Salary Competitiveness Compared to Other Asian Countries

Singapore generally boasts high average salaries compared to other Asian countries. However, this must be weighed against the high cost of living.

Industry-Specific Salaries: The accounting and finance sector, in particular, offers highly competitive salaries.

Comparison with Other Countries: Singapore's salaries are significantly higher than those in Japan, China, and India, and also higher than many other Southeast Asian countries. However, the high cost of living should be considered.

Common Challenges Faced by Job Seekers

Despite the favorable overall market, job seekers face several challenges:

• Competitive Job Market: High competition, especially for fresh graduates.
• Skills Mismatches: Discrepancy between skills demanded and available candidates.
• High Expectations: Job seekers often expect high salaries and career growth.
• Mental Health and Work-Life Balance: Growing concerns about workplace stress.
• Flexible Work Arrangements: Balancing employer and employee needs regarding remote work.
• Economic Uncertainty: Layoffs in some sectors.
• Regulatory Changes: Impact of new legislation on employment contracts.

Visa and Work Pass Categories for Foreign Professionals

Several options exist for foreign professionals:

• Employment Pass (EP): For professionals, managers, and executives.
• Personalised Employment Pass (PEP): For high-earning professionals, allowing greater flexibility.
• Entrepreneur Pass (EntrePass): For those starting businesses.
• Training Employment Pass: For short-term training programs.

Current Unemployment Rates and Job Market Trends

Unemployment rates remain low, and the job market shows positive growth, although there are sector-specific variations.

• Unemployment rates have decreased across various categories.
• Employment growth was driven by non-resident employment in certain sectors.
• Retrenchments remain low.
• Labour force participation rate is high, although influenced by population ageing.
• Employment rate for persons with disabilities is rising.

Importance of Mandarin and Other Local Languages

Proficiency in Mandarin or other local languages is a significant asset in the Singaporean job market.

• Provides a competitive edge.
• Opens up business opportunities.
• Demonstrates cultural intelligence.
• Enhances networking.
• Can improve salary and career prospects.

Best Job Search Platforms and Recruitment Agencies

Job Search Platforms

• JobStreet
• JobsDB
• MyCareersFuture
• STJobs
• Indeed
• LinkedIn
• Monster Singapore
• Glints
• FastJobs
• JobCentral
• GrabJobs
• Findjobs
• Snaphunt
• Wantedly
• NODEFLAIR

Recruitment Agencies

While a comprehensive list of recruitment agencies is beyond the scope of this article, many job boards partner with agencies. Consult dedicated resources for a complete list.

Typical Hiring Process and Timeline

The hiring process generally involves several steps:

1. Job Advertising and Application Collection
2. Refining the Applicant List
3. Interviewing Candidates
4. Background Checks and Verification
5. Job Offer and Contract
6. Onboarding

The timeline varies widely, but the average is around 68 days. Senior roles or those requiring security clearance may take much longer.

By understanding these aspects of Singapore's job market, both local and foreign professionals can better position themselves for success.

Garden leave, a common practice in Singapore, allows employers to manage the departure of employees while safeguarding their interests. This article clarifies the legal framework, rights, obligations, and key considerations surrounding garden leave in Singapore.

What is Garden Leave?

Garden leave is a period where an employee, though still employed, is not required to work. It typically occurs during the notice period following resignation or termination. The employee remains on the payroll and receives full benefits but is prohibited from working for competitors or accessing sensitive company information.

Legal Framework in Singapore

Singapore's Employment Act doesn't explicitly address garden leave. Instead, it's governed by contract law and common law principles. The Ministry of Manpower (MOM) acknowledges its legitimacy when clearly defined in employment contracts.

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Garden leave in Singapore is not explicitly addressed by the Employment Act and is instead governed by contract law and common law principles. Its enforceability is contingent upon a clearly defined clause within the employment contract, as without it, an employer cannot unilaterally impose garden leave, and doing so may constitute a breach of contract.

Employer's Rights and Obligations

• Express Clause: This leave clause must be explicitly stated in the employment contract. Without this, an employer cannot unilaterally impose garden leave.
• Protection of Interests: Garden leave protects the employer from potential harm caused by departing employees accessing sensitive information or working for competitors.
• Continuation of Pay and Benefits: Employers must continue paying full salary and providing all contractual benefits during the leave.
• Reasonable Duration: The garden leave period must be reasonable, typically aligning with the notice period in the contract. Excessive durations may be challenged.

Employee's Rights and Obligations

• Remain Employed: Employees remain employed and subject to their contract's terms.
• Duties and Obligations: Employees might be required to assist in handing over duties and must maintain confidentiality. They cannot engage in competitive activities.
• Pay and Benefits: Employees receive full pay and benefits as per their contract.
• Restrictions: Working for another employer or starting a competing business is generally prohibited during garden leave. However, employees are free to engage in non-work-related activities.

Garden Leave vs. Normal Notice Periods

Key Differences from Normal Notice Periods

• Employment Status: During garden leave, the employee remains employed and receives full pay and benefits. During a normal notice period, the employee typically continues working.
• Work Obligations: Employees on garden leave are not expected to work, though handover assistance may be required. During a normal notice period, employees continue fulfilling their job responsibilities.
• Contractual Requirement: Garden leave requires an express clause in the contract; a normal notice period is implied unless otherwise specified.
• Restrictions: Garden leave often includes restrictions on competitive activities, while normal notice periods generally don't.
• Duration: Garden leave typically matches the notice period, while normal notice periods can be shorter. Employers can refer to this MOM official guideline about notice period duration.

Can an Employer Force Garden Leave?

An employer can force garden leave only if:

• Express Clause Exists: The employment contract explicitly includes a garden leave clause.
• Legitimate Interests and Reasonableness: Even without an express clause, the employer must demonstrate legitimate business interests are at stake and the duration is reasonable. This may require court intervention.

Salary and Benefits During Garden Leave

Employees are generally entitled to their full salary and benefits during garden leave, provided the contract includes a properly worded garden leave clause. This includes bonuses and other contractual benefits.

Working for Another Company or Starting a Business During Garden Leave

Generally prohibited. The employment contract should explicitly state this restriction. Breaching this can lead to legal action.

Duration of Garden Leave

Typically aligns with the notice period in the contract. The duration must be reasonable and not excessive.

Consequences of Breaching Garden Leave Terms

Breaching garden leave terms is a breach of contract and can lead to:

• Legal action by the employer.
• Injunctions to enforce garden leave terms.
• Potential termination of employment.

Terminating Garden Leave Early

Early termination requires either an express clause in the contract permitting it or mutual agreement between employer and employee. Unilateral early termination by the employer may be legally challenged.

Essential Components of a Garden Leave Clause

• Express Entitlement: Clearly state the employer's right to impose garden leave.
• Trigger Circumstances: Specify when garden leave applies (e.g., resignation, termination).
• Duration: Define the length (usually the notice period).
• Terms and Conditions: Detail salary, benefits, allowed activities, and restrictions.
• Legitimate Business Interests: Explain why garden leave is necessary.
• Right to Exclude from Premises: State that the employee can be excluded from the workplace.
• Compliance with Contractual Obligations: Specify continued obligations, like confidentiality.
• Enforceability: Ensure the clause is legally sound and reasonable.

Garden Leave and Bonus Payments

Bonuses and other incentives are typically paid during garden leave if they're part of the employment contract. The contract's specific terms determine the treatment of these incentives.

Conclusion

Garden leave in Singapore is a powerful tool for employers, but it must be implemented carefully and legally. Both employers and employees need to understand their rights and obligations to ensure a smooth and legally compliant transition.

Navigating the complexities of employment in Singapore requires a thorough understanding of employment contracts. This article addresses common questions and concerns regarding employment contracts in Singapore, providing a comprehensive guide for both employers and employees.

What is an Employment Contract in Singapore?

An employment contract, or employment agreement, is a legally binding document that outlines the terms and conditions governing the employer-employee relationship in Singapore. It clarifies expectations, ensures mutual understanding, and protects the rights and interests of both parties. The contract is governed by the Employment Act, which sets minimum standards for employment terms, including salary, overtime, leave, and benefits. It's crucial to distinguish between a Contract of Service (employee-employer relationship, typically covered by the Employment Act) and a Contract for Service (independent contractor, often not covered by the Act).

Essential Components of an Employment Contract:

• Basic Information: Names of employer and employee, job title, and commencement date.
• Job Scope and Responsibilities: A detailed description of the job's duties.
• Remuneration Details: Basic salary, bonuses, overtime pay, salary period, and payment method.
• Working Hours, Rest Days, and Overtime: Standard working hours, rest days, and overtime policies.
• Employee Benefits: Details on leave entitlements (annual, sick, maternity, childcare), medical benefits, and other perks.
• Probation Period: Duration and terms of any probationary period.
• Termination and Notice Period: Conditions and notice periods for terminating the contract.

While not legally required to be fully written, a written contract is strongly recommended to avoid ambiguities. Employers are legally obligated to provide Key Employment Terms (KETs) in writing within 14 days of employment commencement.

Creating a Legally Valid Employment Contract in Singapore

To ensure a legally sound contract, adhere to these guidelines:

Key Employment Terms (KETs):

Employers must provide KETs in writing to employees covered by the Employment Act and employed for 14 days or more (starting April 1st, 2016). These include:

• Full name of employer and employee
• Job title, main duties, and responsibilities
• Start date of employment
• Duration of employment (if fixed-term)
• Working arrangements (daily hours, working days, rest days)
• Salary period
• Basic salary and rate of pay
• Fixed allowances and deductions
• Overtime payment period and rate
• Other salary components (bonuses, incentives)
• Types of leave
• Other medical benefits
• Probation period
• Notice period
• Place of work (optional but recommended)

Minimum Requirements and Protections:

The contract cannot offer terms less favorable than those in the Employment Act. Any such terms are void.

Structure and Documentation:

While a partially oral contract is possible, a comprehensive written contract is highly recommended to prevent misunderstandings. It should cover the start of employment, job scope, working hours, probation, compensation, benefits, termination, and a code of conduct.

Specific Provisions:

• Working Hours and Rest Days: Comply with Part IV of the Employment Act.
• Leave Entitlements: Include provisions for paid annual leave, sick leave, maternity leave, etc., as mandated by the Act.
• Termination: Outline termination conditions for both employer and employee.

Additional Considerations:

• Work Permits: For foreign workers, specify permit validity and renewal.
• Repatriation: Include clauses regarding repatriation for foreign workers.
• Statutory Obligations: Ensure compliance with CPF contributions and payroll record-keeping.

Legal Review:

Seek legal review to ensure compliance with Singaporean law.

Different Types of Employment Contracts in Singapore

• Permanent Contracts: Long-term employment with no fixed end date.
• Fixed-Term Contracts: Employment for a specific period.
• Contractual Employment: Short-term engagements for specific projects or skills.
• Part-Time Employment: Employment for less than 35 hours per week.

Regardless of type, all contracts must comply with the Employment Act.

Modifying or Terminating an Employment Contract

Modifying a Contract:

Requires mutual agreement between employer and employee. Unilateral changes are invalid.

Terminating a Contract:

Can be initiated by either party, typically in writing. The notice period is specified in the contract or determined by length of service. Termination without notice is possible for gross misconduct, but requires due process. Breach of contract by either party may also lead to termination. Formal termination letters are mandatory. Upon termination, employees are entitled to outstanding wages, bonuses, and other benefits. Foreign employees require additional considerations regarding work permits.

Dispute Resolution:

For wrongful dismissal claims, file with the Tripartite Alliance for Dispute Management (TADM) within one month of termination.

Legal Consequences of Not Having a Written Employment Contract

While not fully mandatory, failure to provide KETs in writing is a breach of the Employment Act, leading to potential fines and imprisonment for employers.

Employment Contracts for Foreign Workers

Contracts for foreign workers require additional considerations, including work permit details, repatriation clauses, and compliance with the Employment of Foreign Manpower Act (EFMA).

Common Mistakes to Avoid When Drafting an Employment Contract

• Using uncustomized templates.
• Lack of clear key terms.
• Missing essential elements.
• Non-compliance with statutory requirements.
• Improper use of probationary periods.
• Unilateral contract changes.
• Lack of consideration.
• Automatic renewal of fixed-term contracts without careful consideration.
• Failure to update the contract.
• Lack of dispute resolution clauses.

Record Keeping Requirements

Retain employment contracts and related documents for at least 6 years from termination, potentially up to 7 years if legal action is possible. Active employee records should be kept throughout employment, and terminated employee records for at least one year, but ideally up to 7 years.

Are Verbal Employment Contracts Legally Binding in Singapore?

Yes, but highly discouraged. While legally binding if they meet contractual criteria, proving their existence can be difficult. The Employment Act mandates written KETs.

This information is for general guidance only and does not constitute legal advice. Consult with a legal professional for specific advice regarding your situation.