The Employment Act is Singapore’s primary labor law, stipulating the basic terms and conditions of employment, as well as the rights and responsibilities of employers and employees under an employment contract.
This Act applies to all local and foreign employees under an employment contract, except for domestic workers, seafarers, and employees of statutory boards or the government.
The Ministry of Manpower (MOM) in Singapore plays a facilitative and regulatory role in balancing the country’s manpower needs.
The mission of the Ministry of Manpower is to develop an efficient workforce and progressive workplaces for Singaporeans, thereby providing better job opportunities and retirement security for the citizens of Singapore.
Unions, employers, and the Singapore government adopt a unique tripartite collaboration approach to promote shared economic and social goals, achieving win-win outcomes for all parties in a non-confrontational and objective manner.
The tripartite partners include the Ministry of Manpower (MOM), the National Trades Union Congress (NTUC), and the Singapore National Employers Federation (SNEF). In 2006, they established the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) to promote the adoption of fair, responsible, and progressive employment practices.
About Employment Contract
An employment contract typically should include the following details:
– Full Name of the Employing Company
The complete legal name of the company hiring the employee.
– Full Name of the Employee
The complete legal name of the employee.
– Job Title and Main Responsibilities
The employee’s position and their primary job duties.
– Employment Start Date
The date when the employment will begin.
– Contract Duration
For fixed-term contracts, the length of employment and the end date.
– Working Hours
Specific work times, including daily working hours, number of workdays per week, lunch breaks, and rest periods.
– Salary Payment Schedule
When and how often the salary will be paid.
– Basic Salary Amount
The amount of the employee’s basic salary.
– Fixed Allowances (if any)
Any additional fixed allowances provided to the employee.
– Fixed Deductions (if any)
Any fixed deductions from the employee’s salary.
– Overtime Pay (if any)
Compensation for any overtime work.
– Other Compensation-Related Items
Additional items related to compensation, such as bonuses.
– Leave Entitlements
Details on leave rights, including annual leave, outpatient sick leave, hospitalization leave, etc.
– Other Benefits
Additional benefits such as supplementary health insurance, medical benefits, dental benefits, etc.
– Probation Period
Duration and terms of the probationary period.
– Notice Period for Resignation or Termination
The required notice period for either party to terminate the employment or contract.
– Workplace
The location where the employee will be working, if applicable.
About Probation Period
In Singapore, there is no specific statutory requirement for a probation period, but in practice, probation periods typically range from 3 to 6 months.
After working for 3 months, employees are generally entitled to start enjoying paid annual leave, regardless of whether they are still within their probation period.
After Signing the Employment Contract
If the employer changes the terms and conditions of employment without your consent, they cannot enforce these changes.
If you disagree with the proposed changes, you should discuss them with your employer and try to reach a mutually acceptable agreement.
If an agreement cannot be reached, either party can terminate the employment relationship after providing appropriate notice.
Differences Between Employment Contracts and Service Contracts
An employment contract refers to an agreement where one party agrees to employ another party as an employee; the other party agrees to become the employee and provide services to the employer.
The employer must contribute to the Central Provident Fund (CPF) for the employee and provide statutory benefits, such as annual leave and sick leave.
A service contract refers to an agreement where one party is commissioned to act as an independent contractor, such as a self-employed individual or a vendor, to complete a specific task or project for the company in exchange for a fee.
Under this arrangement, the parties are not in an employment relationship, and therefore, the service provider is not protected under the Employment Act. There is no single definitive test to distinguish between an employment contract and a service contract.
Factors to Consider in Determining an Employment Contract
Control
– Who decides on hiring and firing employees?
– Who pays the employee’s salary? How is the salary paid?
– Who determines the production processes, schedules, and methods?
– Who is responsible for providing the work?
– What is the extent of control and supervision over the employee’s work?
Ownership of Work Factors
– Who provides the tools and equipment?
– Who provides the workplace and materials?
Economic Considerations
– Is the person conducting business for themselves or for their employer?
– Does the person have the opportunity to share in any profits, or are they responsible for any risks of loss?
– How is the person’s income and earnings calculated?
– Does the person have the right to “price” or estimate the value of their work?
