The employment contract defines the relationship between an employer and an employee in Singapore. Employment in Singapore is regulated by the Employment Act. However, the Employment Act in Singapore only applies to certain categories of employees. The conditions of an employment contract can be negotiated between parties but it will be subject to the provisions of the Employment Act and will also have certain limits.
As mentioned above the Employment Act does not cover all types of employees. Among the employees the Singapore Employment Law does not cover are individuals in managerial and executive positions, lawyers, accountants, doctors, domestic workers, and government personnel. According to the Employment Act employees earning less than 2,000 S$ per month must benefit from additional protection such as rest days, specific work hours, public holidays, paid annual leave, sick leave and certain retirement benefits.
According to the Employment Law, a Singapore labor contract is also referred to as employment agreement, appointment letter or offer letter. The employment contract is defined as an agreement that contains the work terms and conditions between an employer and employee. Even if oral contracts are also recognized, the written contract is the most employed type of labor contract in Singapore. The employment contract must contain certain information. Among these it must state the job title, the duration of the contract if it is temporary, the date when the employee will start working, the wage package, the timetable, the benefits (if any), a probation clause (if any), and the termination clauses. If considered important a code of conduct can also be inserted in the employment agreement.
The legislation in Singapore is quite strict about employment and the rights employees have. Other requirements of the Employment Law in Singapore state that an employee’s salary must be paid at least once a month. Employees earning less than 2,000 S$ benefit from special conditions and their employment must be done under certain circumstances. They must benefit from a certain timetable that does not exceed 44 hours per week.
For foreign investors wanting to open a business our experts in company formation in Singapore will provide all the important information. You can also contact us for details about hiring personnel in Singapore.