Employment Act of Singapore

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.)
Domestic Workers
Seamen
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

 

We have been assisting clients from all over the globe start a Singapore company. We also help you learn fast and accurately on Singapore Employment Act. Our success rate is phenomenal, and almost all of our enterprise clients have entrusted us, with the routine management tasks such as bookkeeping and secretarial services and we continue to impress them beyond our promise.

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About Singapore Employment Act

Local and foreign entrepreneurs, companies and investors are required to know and abide with the Singapore Employment Act. This will enable them to know their limitations and let them operate their businesses accordingly. 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.

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.)
Domestic Workers
Seamen
Any person employed by a Statutory Board or the Government.

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

 

We have been assisting clients from all over the globe start a Singapore company. We also help you learn fast and accurately on Singapore Employment Act. Our success rate is phenomenal, and almost all of our enterprise clients have entrusted us, with the routine management tasks such as bookkeeping and secretarial services and we continue to impress them beyond our promise.

More Singapore News Articles

All About Singapore Employment Pass

If you have decided to start a company in Singapore, if you just want to work in Singapore or if you are simply considering where in the world to work and live, the legal documentation that supports your employment is often a factor that gets overlooked. Which employment pass is available to you or which employment pass you choose to apply for can have important implications to you and your family while living and working in a foreign country.

For employment pass options in Singapore, salary and education play a major role. The industry of your employment is also relevant, as well as less obvious factors such as work experience, age and even nationality.

Given that most people are sure of at least ONE factor of their employment criteria, employment pass options will be presented around key individual criterion to facilitate identification of the employment options available to you.

Here’s a quick overview of the different types of work visas available to Non-Singaporean individuals and companies who wish to work in the country.

● Employment Pass (EP)
● Entrepreneur Pass (EntrePass)
● Personalized Employment Pass (PEP)
● S Pass
● Miscellaneous Work Pass
● Training Employment Pass
● Multiple Journey Business Visa

You’ll require an EP if you’re a foreign professional working for a Singapore company. Foreign individuals who incorporate a Singapore company and wish to run its operations in the country must also apply for an EP. Non-Singaporean shareholders or managing directors of a Singapore company are also eligible to apply.

Employment Pass At-a-Glance

● For company owners or professional staff with recognised diplomas/degrees
● Possess professional qualifications and specialist skills
● Minimum monthly salary of S$ 2,500 and above
● Related work experience in respective job
● Renewable by pass holder’s employer only
● Able to travel in and out of Singapore with minimum hassle

Validity: 1-2 years for first-time approval. Subsequent EP renewals are approved as long as the pass holder remains employed in the company.

Eligibility: Company owner, or Non-Singaporean professional earning a minimum monthly income of S$ 2,500 and above. Holds tertiary education qualifications.

Permanent Residence Eligibility: Yes.

Training Employment Pass At-a-Glance

● For non-Singaporean undergraduates from an acceptable education institution participating in their respective degree programme’s training attachment

● For intra-company trainees attending professional or executive training conducted by their respective company’s Singapore offices. Intra-company trainees should possess a degree or diploma

Validity: Short-term.

Eligibility: Earn a fixed monthly salary of more than S$ 2,500 and/or hold acceptable tertiary or professional qualifications.

Benefits: Temporary visa to facilitate professional training sessions for foreign individuals.

Permanent Residence Eligibility: No.

Asiabizservices is the leading Singapore Company Incorporation Services Specialists. It has successfully helped thousands of foreign entrepreneurs to have Singapore work visa and process their Singapore Employment Pass. Among its specializations are corporate services, accounting services, nominee services, Singapore company registration and more. We assist local and foreign entrepreneurs in documents submission to setup Singapore branch office. Our office is located at Raffles Place, in the heart of the Singapore business district. (“CBD”) If you’re in our neighborhood and want to discuss any aspect of our service then feel free to come in to our offices during business hours.

Our phones are answered during business hours by specialists and not by an answering machine. We appreciate the value of your time and understand that a person cannot be replaced by technology. This is especially true when it comes to making important business decisions. If you are interested in learning more about Asiabizservices kindly email us at sales@asiabizservices.com or give us a call at +6563034614.

Singapore Employment Pass

The Singapore Employment Pass (EP) is a visa usually given to foreign professionals, supervisors, high-ranking employees, and individuals with specialized skills.  However, this visa is also given to foreign entrepreneurs who want to relocate in the country and setup a business.

In most cases, EP is valid for one to two years and can be renewed as long as a person remains employed or continues his business in the country.  

For entrepreneurs who have incorporated a Singapore company and are planning to stay in the city-state, they will need to apply for EP.  This visa is also requirement if they are planning to relocate their foreign staff such as managing directors, supervisors, and managers of their company.

The Singapore Employment Pass application involves certain requirements that will determine the foreign entrepreneurs eligibility for this visa:

– At least a monthly salary rate of S$ 2,500

– A college degree or diploma from a recognized school

– Professional qualifications which may include specialized skills and work-related experience

– Entrepreneurial skills

While these criteria are traditionally considered by the Ministry of Manpower (MOM) when making decisions, the agency also gives importance on these other aspects:

– Company’s paid-capital which may show its potential economic contributions in the country

– Company’s background, track record, and reputation

– Current citizenship and age of an applicant

It is important to note that having a college diploma does not automatically guarantee a successful EP application since MOM also considers other important factors.  In fact, the agency may even issue EP to those who lack educational requirement if their entrepreneurial skills and reputation are notable.

For EP applicants, MOM will require them to submit these following requirements:
A copy of their passport details

Resume stating their educational background and employment or professional history

Copies of education certificates and testimonials from their previous employers

Any records should be in English, if not, these should be translated into this language by an official translation service.

Meanwhile, there are three types of EP which are mainly based on the fixed monthly salary of the applicants.
– P1 Pass is for individuals who are earning a fixed monthly salary rate of S$ 7,000 and higher.

– P2 Pass is for applicants with a fixed monthly salary rate that is between S$ 3,500 and S$ 7,000.

– Q1 Pass is for individuals who are earning a fixed monthly salary rate of at least S$ 2,500.

 

AsiaBizServices is the leading Singapore Employment Pass Application specialists. It has assisted thousand of foreign entrepreneurs form a Singapore Company including securing their Singapore Employment Pass among other services. Our office is located at Raffles Place, in the heart of the Singapore business district. (“CBD”)
If you’re in our neighborhood and want to discuss any aspect of our service then feel free to come in to our offices during business hours. Appointments are welcome but definitely not necessary.