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Written Agreements

An employment agreement can be in writing, verbal, expressed, or implied. It can also take the form of a letter of appointment/employment or an apprenticeship agreement. However, the Ministry of Manpower recommends that contracts be in writing to minimize disputes on the agreed terms and conditions.

Singapore's Ministry of Manpower requires all employers to issue key employment terms (KETs) in writing to employees with contracts lasting longer than 14 days.

Examples of KETs that must be issued to employees include the following:

• Full name of employer
• Full name of the employee
• Job title, main duties, and responsibilities
• Start date of employment
• Duration of employment (if the employee is on a fixed-term contract)
• Daily working hours

(This is a non-exhaustive list.)

The enforceability of restraint of trade clauses, also known as non-competition clauses, is subject to adjudication by the courts and depends on the facts of the case. Such clauses are enforceable only if there are legitimate business interests to protect and if they are reasonable in terms of scope, geographical area, and duration. Employees who believe they have been subject to unreasonable employment clauses may seek assistance from their unions, the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), or the Ministry of Manpower.

Oral Agreements

In Singapore, an employment agreement can be in writing, verbal, expressed, or implied. However, the Ministry of Manpower recommends that such contracts be in writing to minimize disputes on the agreed terms and conditions.

Singapore's Ministry of Manpower requires all employers to issue key employment terms (KETs) in writing to employees with contracts lasting longer than 14 days.

Implied Agreements

Singapore's labor law states that employment contracts can be in in writing, verbal, expressed, or implied. Also, they can be express or implied. However, the Employment Act offers no guidance on implied contracts. The Ministry of Manpower recommends concluding employment contracts in writing to minimize disputes on the agreed terms and conditions.

Generally, an employee's service contract shall not require them to work more than 6 consecutive hours without a break, more than 8 hours a day, or more than 44 hours in one week. Some exceptions to this general rule are listed in the paragraphs below.

An employee engaged in work that must be carried on continuously can be required to work for 8 consecutive hours. However, the workday must include a period or periods of not less than 45 minutes in total, during which the employee shall have the opportunity to have a meal.

Also, if there are fewer than 8 hours of work on 1 or more days of the week, the limit of 8 hours in 1 day may be exceeded during the remaining days of the week. Still, no employee shall be required to work more than 9 hours a day or more than 44 hours per week.

New Year’s Day (January 1st); Chinese New Year – first day (Days movable); Chinese New Year – second day (Days movable); Hari Raya Puasa (Days movable); Hari Raya Haji (Days movable); Good Friday (Days movable); Labor Day (May 1st); Vesak Day (Days movable); National Day (August 9th); Deepavali (Days movable); Christmas Day (December 25th)

The Employment Act of Singapore does not contain provisions that regulate the length of probationary periods for employees. Probationary periods are governed by the terms of the employment contract or collective bargaining agreement. However, the existence and length of a probationary period, as well as the notice policy of the employer, are considered key employment terms that must be given to the employee in writing no more than 14 days after the start of employment.

Either employer or employee can terminate the employment at the end of the probation period by giving notice or paying compensation in lieu of.

Notice Period

Singapore's labor law requires a contracting party to give written notice to the other party to terminate the employment contract. This notice can be in the form of a termination or resignation letter. The length of notice must be the date indicated in the contract, or the length agreed to in the verbal agreement if no written contract exists. All employees, including those on a fixed-term contract, can resign anytime if they serve the required notice stated in their contract or make payment in lieu of notice. If no notice period has been agreed to in the contract, the notice should be based on the employee's length of service as follows:

• Less than 26 weeks: 1 day
• Between 26 weeks and 2 years: 1 week
• Between 2 years and 5 years: 2 weeks
• 5 years and above: 4 weeks

Both parties can also agree to waive the notice period by mutual consent. Such a waiver should be concluded in writing.

Severance Benefits

Singapore’s Employment Act does not require employers to pay severance. However, an employer must give all eligible employees notice or payment in lieu of notice and pay all unused annual leave on the last day of work.

The Ministry of Manpower requires employers to compensate their employees in case of retrenchment. The amount of retrenchment benefit depends on what is provided for in the employment contract or collective agreement (for unionized companies). If there is no provision, it must be negotiated between the employees (or their union) and the employer.

The prevailing norm is to pay a retrenchment benefit of 2 weeks to 1 month of salary per year of service, depending on the company’s financial position and industry.

Minimum Wage

While Singapore's labor law sets minimum wages for workers in Singapore in specific sectors, the Ministry of Manpower states that employers should pay their employees based on their skills, capabilities, and competencies.

Singapore sets forth a progressive wage model for employees who are Singapore citizens or permanent residents in the cleaning, security, landscape, lift and escalator, retail, food services, and waste management job roles. Employers are encouraged to use the same progressive wage principles for foreign employees in those sectors. The LQS is SGD 1,600 (Singaporean dollar) per month, and full-time employees and part-time employees are entitled to at least SGD 800 per month.

Overtime, Holiday & Vacation Pay

In Singapore, overtime work is all work beyond regular working hours. A non-workman earning up to SGD 2,600 (Singapore dollars) and a worker earning up to SGD 4,500 can claim overtime. For overtime work, the employer is required to pay at least 1.5 times the hourly basic rate. Payment must be provided within 14 days after the last day of the salary period. The overtime rate payable for non-workmen is limited to SGD 2,600 per month or an hourly rate of SGD 13.60.

Payment for work completed on a rest day is calculated as follows:

If work is done at the employer's request:

• 1 day's salary for working up to half the employee's normal daily working hours
• 2 days' salary for working for more than half the employee's daily working hours
• 2 days' salary + overtime pay for working beyond the employee's normal daily working hours

If work is done at the employee's request:

• Half day's salary for working up to half the employee's normal daily working hours
• 1 day's salary for working for more than half the employee's daily working hours
• 1 day's salary + overtime pay for working beyond the employee's normal daily working hours

If required to work on a public holiday, an employee should be paid an extra day's salary at the basic pay rate.

• The employee's monthly gross salary already includes payment for the holiday, so the employer only needs to pay the employee an additional day's pay
• If the employee is absent without reason on a working day before or after the holiday, they are not entitled to the holiday pay. The employer can, therefore, deduct 1 day's pay at the gross rate from the monthly gross salary

In Singapore, every election day is considered a public holiday. The date that falls on election day should be treated as any other public holiday, with leave and entitlements for employees.

Employees are paid their regular salary while on annual leave.

Visas

A Singapore entry visa is not an immigration pass. It is a pre-entry permission for the holder of a valid visa to travel to and seek entry into Singapore. The Immigration & Checkpoints Authority officers will determine the grant of an immigration pass at the entry point. Entry permit categories are as follows:

• Visas for professionals
• Visas for skilled and semi-skilled workers
• Visas for trainees and students
• Visas for family members
• Exemptions and passes for employment during a visit

Work Permits

Singapore issues the following categories of work permits:

Professionals:

• Employment Pass: For foreign professionals, managers, and executives (candidates need to earn at least SGD 5,600 (Singapore dollars) per month and have acceptable qualifications)
• EntrePass - for eligible foreign entrepreneurs who want to start a business in Singapore
• Personalized Employment Pass: for high-earning existing employment pass holders or overseas foreign professionals (more flexible than the Employment Pass)
• Overseas Networks & Expertise Pass: for top talent in business, arts and culture, sports, as well as academia and research

Skilled and semi-skilled workers:

• S pass - for mid-level skilled staff who earn at least SGD 3,150 a month and meet the assessment criteria.
• Work permit - for semi-skilled foreign workers in the construction, manufacturing, marine shipyard, process, or services sector
• Work permit for domestic worker - for migrant domestic workers
• Work permit for confinement nanny - for Malaysian confinement nannies to work in Singapore for up to 16 weeks starting from the birth of the employer's child
• Work permit for performing artists - for foreign performers working in public entertainment outlets such as bars, hotels and nightclubs

Trainees and students:

• Training Employment Pass: for foreign professionals undergoing technical training earning at least SGD 3,000 a month
• Work Holiday Pass: for students 18 to 25 years old who want to work in Singapore for 6 months
• Work Holiday Pass (Work and Holiday Visa Program): for Australian and New Zealander students and graduates aged 18 to 30 who want to work and holiday in Singapore for 12 months
• Training Work Permit: or semi-skilled foreign trainees or students undergoing practical training (up to 6 months)

Singapore also offers family member visas as well as exemptions to certain visitors in the country for brief work.