01
Employment Act - basic minimum framework
Most employees are covered core provisions, but Part 4 rules on hours, overtime and rest days apply to certain categories and do not apply to managers and executives. A contract may improve the statutory minimum, but not worsen the applicable mandatory conditions.
02
KETs turn agreements into verifiable documents
For a covered employee hired for 14 days or more, key employment terms are issued in writing. In addition to KETs, the agreement regulates confidentiality, IP, data, conflicts, remote work, expenses, bonus discretion, garden leave and post-termination restrictions within the limits of applicable law.
- Identity and role
- Employer, employee, title, duties and start date
- Working arrangement
- Hours, days, rest day and place of work
- Compensation
- Salary period, basic pay, allowances, deductions and bonus
- Leave and medical
- Annual, sick, hospitalization, parental and benefits
- Lifecycle
- Probation, notice, misconduct and return of property
03
Payroll has a statutory timing
For a covered employee, salary is paid at least once a month and usually within 7 days after the salary period; overtime - within 14 days. Itemized payslip and employment records support payroll compliance. CPF is determined by citizenship/permanent-resident status, age and wage components.
04
Hours and overtime depend on Part 4 coverage
For Part 4 employees, maximum normal hours, breaks, rest day and overtime pay are regulated; managers and executives rely mainly on contracts. After qualifying service, annual and sick leave rights apply; covered employee has 11 paid public holidays.
Actual functions, authority and salary are assessed together; the artificial name "manager" should not be used to circumvent the rules.
05
Work pass gets the role, not the person “in general”
Employer determines occupation, salary, qualifications, reporting line and business need, then checks Employment Pass, S Pass or other route. Before starting work, approval and issuance are required; a change in employer or material conditions may require a new procedure.
- Employment Pass
- Qualifying salary + COMPASS if no exemption
- S Pass
- Salary, quota and levy
- Work Permit
- Sector, source-country, quota and levy rules
- Employer duties
- Accurate application, records, insurance/medical duties where applicable
- Tax
- Payroll and individual tax residence are analyzed separately
06
COMPASS evaluates the candidate and the company
For Employment Pass, after qualifying salary, the points-based Complementarity Assessment Framework is applied: salary, qualifications, nationality diversity, local employment support and applicable bonus criteria. Workforce plan must be checked before the relocation promise and release date.
07
Employee handbook must work with the contract
Conflicts, gifts, anti-bribery, whistleblowing and investigations.
Confidentiality, IP, devices, monitoring and PDPA.
Safety, harassment, grievance and flexible work requests.
Expenses, travel, remote work and business continuity.
08
Notice, reason and process do not mix
The employer or employee terminates the contract with a contractual/statutory notice or salary in lieu. Misconduct dismissal requires due inquiry. Final salary timing depends on the scenario; company property, access, confidentiality, IP and immigration cancellation are closed using the exit checklist.
09
Redundancy requires an objective and respectful process
Selection is related to future business needs and should not be discriminatory. An Employer with a minimum of 10 employees, retrenching any employee, notifies MOM within 5 working days after notifying the employee. Contract/collective agreement and prevailing tripartite practice determine benefit.
- Definition
- Redundancy or reorganization without imminent role replacement
- Employee notice
- According to contract of service; reasonable early information
- MOM notice
- 5 working days for employer with 10+ employees
- Benefit norm
- Typically 2 weeks–1 month salary per year of service unless otherwise specified
- Final pay
- Salary, unused leave, notice pay and applicable amounts
10
Employer file
- 01
KETs, contract, handbook and job description are agreed upon.
- 02
Work pass, COMPASS, quota/levy are checked before offer.
- 03
Payroll, CPF, leave and employment records are configured.
- 04
IP, confidentiality, PDPA and device access are issued.
- 05
Performance, investigation and exit procedures are provable.
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