{"id":100559,"date":"2024-06-17T11:23:14","date_gmt":"2024-06-17T03:23:14","guid":{"rendered":"https:\/\/linksinternational.com\/?p=100559"},"modified":"2024-06-18T17:08:41","modified_gmt":"2024-06-18T09:08:41","slug":"employment-act-singapore-how-to-hire-and-stay-compliant","status":"publish","type":"post","link":"https:\/\/linksinternational.com\/en-sg\/blog\/employment-act-singapore-how-to-hire-and-stay-compliant\/","title":{"rendered":"Employment Act Singapore: How to Hire and Stay Compliant"},"content":{"rendered":"\n

In the wake of the recent surge in remote work due to the\npandemic, many companies are looking to extend their hiring beyond local\nborders. If your organisation is considering hiring\nremote employees in Singapore<\/a>, it’s crucial to understand the country’s\nemployment laws to avoid legal and financial issues.<\/p>\n\n\n\n

Singapore is an attractive destination for expanding your\nteam, ranking first among 39 countries in the Asia-Pacific region on the 2023\nIndex of Economic Freedom. With a high standard of living, excellent human\ndevelopment indicators, and a skilled workforce, it’s an ideal location for\nremote hiring.<\/p>\n\n\n\n

However, understanding and adhering to the Employment Act Singapore\nand other labour regulations is essential. Non-compliance can lead to severe\ncomplications. This guide will help you grasp the rights of employees in\nSingapore and your responsibilities as their foreign employer. We’ll also\ndiscuss key labour laws and how partnering with an Employer\nof Record (EOR)<\/a> can ensure compliance.<\/p>\n\n\n\n

Read also: <\/strong>Understanding the Role of Employer of Record (EOR) Services<\/strong><\/a><\/p>\n\n\n\n

Key Labour Laws in Singapore<\/h3>\n\n\n\n

Singapore has several laws governing employment, including\nthe Employment Act\nSingapore, Common Law, Child Development Co-Savings Act, Employment of\nForeign Manpower Act, Work Injury Compensation Act, and Workplace Safety and\nHealth Act.<\/p>\n\n\n\n

Uniform Employment Laws<\/h3>\n\n\n\n

Unlike many countries, Singapore enforces employment laws\nat the national level, as it is a sovereign city-state without subdivisions\ninto states.<\/p>\n\n\n\n

Hiring Singaporean Employees: Key Considerations<\/h3>\n\n\n\n

Singapore is multilingual, with English, Malay, Mandarin,\nand Tamil being the most common languages. Approximately 90% of employers\nprovide supplementary health insurance to employees, complementing the public\nhealth system. Companies wishing to hire in Singapore must either establish a\nlegal business entity in the country or engage an EOR. An EOR assumes the legal\nresponsibilities for hiring and paying employees on your behalf.<\/p>\n\n\n\n

Links\u2019 EOR services<\/a> facilitate hiring employees or HR services provider in Singapore<\/a>, managing global payroll, taxes, benefits, offboarding, and ensuring legal compliance.<\/p>\n\n\n\n

Employment Costs<\/h3>\n\n\n\n

To estimate the cost of hiring an employee in Singapore, you can use Employee PEO\/EOR Cost Calculator<\/a>. This tool helps budget for global hires effectively.<\/p>\n\n\n\n

Statutory Employment Rights<\/h3>\n\n\n\n

Singapore grants specific statutory rights to its workforce. The country does not have a statutory minimum wage, but the Progressive Wage Model mandates minimum wages in various sectors, such as S$1320 for cleaning sector workers and S$1650 for security guards.<\/p>\n\n\n\n

Working Hours and Overtime<\/h3>\n\n\n\n

The Employment Act Singapore regulates working hours, entitling employees to breaks, overtime, and rest days. Employees covered under Part IV of the Act cannot work more than 12 hours per day, with exceptions requiring official approval. Overtime is paid at a minimum of 1.5 times the basic hourly rate, with a cap of 72 hours per month.<\/p>\n\n\n\n

Probation Periods and Discrimination<\/h3>\n\n\n\n

There is no mandated probation period in Singapore, though\nit typically ranges from three to six months. While specific\nanti-discrimination legislation is pending, employers are advised to follow the\nTripartite Guidelines on Fair Employment Practices.<\/p>\n\n\n\n

Union Membership and Collective Bargaining<\/h3>\n\n\n\n

Employees in Singapore have the right to join trade unions.\nThe Trade Unions Act regulates union activities, and the Industrial Relations\nAct governs collective bargaining agreements.<\/p>\n\n\n\n

Drug Testing and Workers’ Compensation<\/h3>\n\n\n\n

Employers can conduct drug tests, and the Work Injury\nCompensation Act (WICA) allows employees to claim for work-related injuries or\nillnesses without legal action. Employers must insure local or foreign\nemployees performing manual work or non-manual work earning below S$2600.<\/p>\n\n\n\n

Offboarding Employees<\/h3>\n\n\n\n

Terminating an employee requires adherence to Singapore’s\nregulations. Both parties can terminate with or without notice, depending on\nthe circumstances, with specific guidelines for breaches of contract and\nmisconduct.<\/p>\n\n\n\n

Differentiating Employees and Contractors<\/h3>\n\n\n\n

It is vital not to misclassify employees as independent\ncontractors. An employee has a contract of service, whereas a contractor has a\ncontract for service. Misclassification can lead to severe penalties, including\nfines and imprisonment.<\/p>\n\n\n\n

Simplified Hiring with an Employer of Record<\/h3>\n\n\n\n

Hiring and understanding the Employment Act Singapore can be complex, but partnering with Links EOR service<\/a> can simplify the process. Links offers expertise in visa application<\/a>, payroll<\/a>, PEO\/EOR Services<\/a>, Recruitment<\/a> and benefits management, making global expansion seamless.<\/p>\n\n\n\n

Ready to streamline your HR processes and elevate your\nbusiness? Reach out to us<\/a> today for\npersonalized solutions tailored to your needs.<\/p>\n\n\n\n

Related Blogs:<\/strong><\/p>\n\n\n\n

  1. What is PEO and How Does it Work Compared to EOR?<\/a><\/li>
  2. Top 5 Things to Know About Singapore Working Hours & Overtime Pay<\/a><\/li>
  3. The Right Way to Use an Employer of Record in Singapore<\/a><\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"

    In the wake of the recent surge in remote work due to the pandemic, many companies are looking to extend their hiring beyond local borders. If your organisation is considering hiring remote employees in Singapore, it’s crucial to understand the country’s employment laws to avoid legal and financial issues. Singapore is an attractive destination for […]<\/p>\n

    Read More…<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[254],"tags":[617],"class_list":["post-100559","post","type-post","status-publish","format-standard","hentry","category-hro","tag-peo"],"acf":[],"_links":{"self":[{"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/posts\/100559","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/comments?post=100559"}],"version-history":[{"count":4,"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/posts\/100559\/revisions"}],"predecessor-version":[{"id":100646,"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/posts\/100559\/revisions\/100646"}],"wp:attachment":[{"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/media?parent=100559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/categories?post=100559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/tags?post=100559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}