The purpose of this guide is to present a brief overview on the Singapore Employment Act and common practices for employment contracts, wages and benefits.
The relationship between employer and employee in Singapore is structured by the contract of employment between them. With this, local and foreign entrepreneurs, companies, investors and particularly employees, are obliged to know and abide with the Singapore Employment Act.
Providing accurate information and updates on Singapore Employment Act is also one of the services of company registration firms in Singapore including Rikvin, leading corporate solutions provider and business registration firm in Singapore.
Who are covered under the Singapore Employment Act?
Singapore Employment Act is applicable to all employees, except for the following:
Managerial, executive and confidential positions (However, managers and executives earning $ 2,500 basic monthly salary and below are covered for the purpose of salary protection. All other provisions do not apply to them.)
Any person employed by a Statutory Board or the Government.
What are the features of Employment Contract?
Contract of Service – A contract of service is any agreement whether in writing or verbal, where one person agrees to be an employee and the other agrees to be his employer. An apprenticeship contract or agreement is also considered a contract of service.
Salary – Failure to pay salaries in accordance with provisions of the Employment Act is considered an offence. Employees who are not paid for work done can report employers to MOM for investigation.
Hours of Work and Overtime – An employee covered by Part IV of the Employment Act is not required under his/her contract of service to work more than eight hours in a day or 40 hours in a week.
Public Holidays – All employees covered by the Employment Act are entitled to 11 paid public holidays in a year.
Leave – Employees earning less than S$ 2,000 per month must have served at least 3 months with their employer to avail of the annual leave. The annual leave you are entitled to is stipulated on your employment contract.
Probation Period – The Employment Act of Singapore does not have any clauses that specify the probation period for employees.
Age Restrictions – The legal age to work in Singapore is 17 years old and above. The retirement age in Singapore is 62 years.
Hiring Foreign Employees – Under the Employment Act, a foreigner must have valid work visa to be able to work in Singapore. If you wish to hire a foreigner, you will have to apply for a valid work pass or work permit on his/her behalf before he/she can commence employment with you.
Duties and Obligations of Employers in Singapore – Appointment position, Duration of the employment contract, Employee’s commencement date, Remuneration package, Hours of work, Employee benefits, Probation clause, Code of conduct and Termination
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