02. Employment Contracts

Pursuant to section 95A of the Employment Act of Singapore, employers must issue key employment terms in writing to all employees. In this context, a “key employment term” means any type of term of employment contained in a contract of service between an employer and the employee, that is prescribed to be a key employment term, and includes the following:

• full name of employer.
• full name of employee.
• job title, main duties and responsibilities.
• start date of employment.
• duration of employment (if employee is on fixed-term contract).
• working arrangements, such as daily working hours, number of working days per week and rest day.
• salary period.
• basic salary – for hourly, daily or piece-rated workers, employers should also indicate the basic rate of pay (e.g. $X per hour, day or piece).
• fixed allowances.
• fixed deductions.
• overtime payment period (if different from item 7 salary period).
• overtime rate of pay.
• other salary-related components, such as bonuses and incentives.
• type of leave, such as annual leave, outpatient sick leave, hospitalisation leave, maternity leave and childcare leave.
• other medical benefits, such as insurance, medical benefits, dental benefits.
• probation period.
• notice period.
• (optional) place of work – used if the work location is different from the employer’s address. Although optional, you are strongly encouraged to include this information.

The Employment Act provides that where an employment contract provides a condition of service which is less favourable to an employee than any of the conditions of service prescribed by the Employment Act, it shall be illegal, null and void to the extent that it is so less favourable.

Fixed-term/Open-ended Contracts

Fixed-term and open-ended employment contracts are both permitted and common in Singapore. Similar to open-ended contract employees, fixed-term contract employees are entitled to statutory benefits under the Employment Act and other relevant employment related legislation.

Trial Period

In Singapore, the length of the probation period is not prescribed nor is it mandatory for there to be a probation period. Common market practice would be for a probation period of between three to six months. Employees on probation are covered by the Employment Act and enjoy the same rights under the Employment Act as full-time employees. The length of an employee’s service is calculated from the date on which the employee starts work, and not the date of confirmation.

Notice Period

Employers and employees may contractually agree to the length of the termination notice period, though such period must be identical for both employers and employees. Such notice period would usually be set out in the employment contract.

Notice can be waived by mutual consent between the employee and the employer.

If the employment contract does not specify the notice period, the notice period will depend on the employee’s length of service as follows: