Hiring Employees in Singapore

Key Considerations Before Hiring

Before initiating the hiring process, employers must address several key considerations:

• Labour Laws: Understand the labour laws that apply to your business and your employees’ rights and protections.
• Formalities for Hiring: Familiarize yourself with the procedures for hiring both local and foreign employees, including any restrictions on foreign hires.
• Types of Employment: Determine whether you will be hiring full-time, part-time, or contract staff and understand the implications of each.
• Costs Involved: Calculate the expenses of hiring employees, including levies, provident fund contributions, and other statutory requirements.

Employment Act Overview

The Employment Act outlines the basic terms and conditions of employment in Singapore. It covers various aspects such as working hours, salary, leave entitlements, and termination procedures.

Working Hours and Salary

• Working Hours: Up to 44 hours a week, with overtime compensation for additional hours.
• Salary: Determined through negotiation between employer and employee or through collective bargaining agreements.

Leave Entitlements

• Annual Leave: Minimum of 7 days for the first year, increasing with length of service.
• Sick Leave: 14 days of paid outpatient sick leave and up to 60 days of paid hospitalization leave.

Procedures for Hiring Foreign Employees

Hiring foreign employees involves navigating immigration regulations and obtaining the necessary work passes.

• Work Passes in Singapore

Professionals:

1. Employment Pass (EP): For professionals, managers, and executives earning at least S$5,000 per month and must pass the Complementarity Assessment Framework (COMPASS).
2. EntrePass: For foreign entrepreneurs seeking to establish and run a venture-backed business or one with innovative technologies in Singapore.
3. Personalised Employment Pass: For high-earning Employment Pass holders or foreign professionals based overseas, the PEP provides more flexibility than the standard EP.
4. Overseas Networks & Expertise Pass: For leading professionals in business, the arts, sports, as well as academia and research.

Skilled and semi-skilled workers:

1. S Pass: For skilled workers with a minimum monthly salary of S$3,150 per month.
2. Work Permit for migrant worker: For skilled and semi-skilled workers in specific sectors (construction, manufacturing, marine shipyard, process or services sector).

For more information on Work Passes and other types of passes in Singapore, please visit: https://www.mom.gov.sg/passes-and-permits

Application Process

1. Prepare Documents: Gather all required documents, including educational certificates and employment contracts.
2. Submit Application: Apply through the Ministry of Manpower (MOM) online portal.
3. Track Application: Monitor the application status online.
4. Receive Outcome: Follow instructions for permit issuance once approved.

General Recruitment Guidelines

Follow best practices for recruitment, including job advertising, candidate screening, interviewing, and selection. Ensure your recruitment process is fair, transparent, and compliant with relevant regulations.

Seeking Professional Advice

Consult with experts in Singapore payroll and immigration services to ensure compliance with legal requirements and streamline the hiring process.

Employee Rights and Benefits

Employees in Singapore are entitled to various rights protected by law, including fair employment practices, safe working conditions, and timely payment of salaries.

Singapore Employee Benefits

• Annual Leave: Minimum 7 days, maximum 14 days as per years of service.
• Medical Benefits: Coverage for hospitalization and outpatient care.
• Retirement Benefits: Contributions to the Central Provident Fund (CPF) or other approved pension schemes.

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