Employment Law in Singapore

Coverage and Scope

The Employment Act applies to all employees in Singapore, including foreign workers, with some exceptions such as seafarers, domestic workers, and government employees. This law ensures that workers, whether full-time, part-time, temporary, or on contract, are treated fairly and their rights are protected.

Key Provisions

• Employment Contracts

Employment contracts in Singapore can be written, verbal, expressed, or implied. They must be written in English and include essential details such as job scope, salary, working hours, and other employment terms. It’s important for employers to provide a clear and comprehensive contract to avoid disputes.

• Working Hours and Overtime

The standard working hours in Singapore are up to 8 hours a day or 44 hours a week. Employees working more than these hours are entitled to overtime pay, calculated at 1.5 times the hourly basic rate. Overtime should not exceed 72 hours a month, and payment must be made within 14 days after the overtime work is performed.

• Salary and Wages

While Singapore does not have a national minimum wage, salaries are typically negotiated between the employer and the employee or through collective bargaining agreements. Certain sectors are guided by the Progressive Wage Model (PWM), which sets minimum wage benchmarks.

Leave Entitlements

• Annual Leave

Annual leave entitlement depends on the years of service the employee has worked for with employer. The years of service begins from the first day of employment.

The entitlement increases progressively based on the number of years the employee has worked with the employer.

• Sick Leave

Employees are entitled to 14 days of paid outpatient sick leave and up to 60 days of paid hospitalization leave (inclusive of the 14 days outpatient sick leave), provided they have worked for at least 3 months and have a medical certificate.

• Maternity and Paternity Leave

Singaporean mothers are entitled to 16 weeks of paid maternity leave, while non-Singaporean mothers get 12 weeks.

Fathers are entitled to 2 weeks of Government-paid paternity leave (GPPL) if the child is a Singaporean local. From 1 April 2025, 2 weeks of additional voluntary GPPL will be mandatory. Working fathers with Singaporean children born on or after 1 April 2025, will be entitled to 4 weeks of Government-Paid Paternity Leave (GPPL).

• Childcare Leave

Working parents of whom have children as a citizen of Singapore are entitled to 6 days of paid childcare leave per year. Working parents of non-citizen children can get 2 days of childcare leave per year.

• Other Leaves

Employees are also entitled to marriage leave, and compassionate leave, among others, as per the company’s policies or collective agreements.

Probation and Termination

• Probation Period

While there is no statutory requirement for a probation period, it is common practice for employers to include a probationary period of 3 to 6 months. During this time, either party can terminate the employment with shorter notice periods.

• Termination

Employers must provide notice of termination as specified in the employment contract. The notice period is usually 1 day for employment less than 26 weeks, 1 week for employment between 26 weeks and 2 years, and increases with longer service. Fair dismissal procedures must be followed, and reasons for termination must be substantiated.

• Retirement and Re-employment

The minimum retirement age in Singapore is 63, and employers are required to offer re-employment to eligible employees up to the age of 68. This policy aims to encourage older workers to continue contributing to the workforce.

Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Singapore employment laws and regulations, please visit the official governmental websites.

Updated on: 8^th August 2024