Employment Contract in Singapore: What Every Employer and Employee Must Know

Whether you are hiring your first employee or starting a new job, the employment contract is the foundation of the working relationship in Singapore. Getting it right protects both parties. Getting it wrong can lead to disputes, penalties, and claims at the Employment Claims Tribunal.

This guide covers the legal requirements, mandatory terms, and practical considerations for employment contracts under Singapore law.

Who Is Covered by the Employment Act?

The Employment Act (Cap 91) is Singapore's main employment legislation. Since April 2019, it covers all employees regardless of salary level, with the following exceptions:

• Domestic workers
• Seafarers (covered by separate legislation)
• Civil servants and statutory board employees (covered by their own terms)

Part IV: Additional Protections

Part IV of the Employment Act provides extra protections for overtime, rest days, and public holidays. It applies to:

Worker Type	Salary Threshold
Workmen (manual labor)	≤ S$4,500/month
Non-workmen	≤ S$2,600/month

Employees above these thresholds are covered by the general Employment Act but not Part IV provisions.

Mandatory Key Employment Terms (KETs)

Since April 2016, employers must provide written Key Employment Terms to every employee within 14 days of starting work. This applies to employees who work for at least 14 hours per week and are on contracts of at least 14 days.

Required KETs

Term	Details
Job title and duties	Clear description of the role
Start date	When employment begins
Working hours	Daily and weekly hours, including breaks
Salary	Basic pay, allowances, and payment date
Overtime rate	If applicable under Part IV
Leave entitlements	Annual leave, sick leave, other leave
Notice period	For both employer and employee
Other benefits	Medical, insurance, bonuses if applicable

Failure to provide KETs can result in a fine of up to S$300 per employee for a first offence, and up to S$600 for subsequent offences.

Probation Period

Key Facts

• Not mandated by law — there is no legal requirement to have a probation period
• Common practice: 3–6 months is standard in Singapore
• During probation: The employee has all the same statutory rights as a confirmed employee
• Shorter notice period: Employers can specify a shorter notice period during probation (commonly 1 week vs 1 month after confirmation)
• Must be stated in the contract — if not mentioned, the employee is considered confirmed from day one

Notice Period

If the employment contract does not specify a notice period, the statutory defaults under the Employment Act apply:

Length of Service	Notice Period
Less than 26 weeks	1 day
26 weeks to less than 2 years	1 week
2 years to less than 5 years	2 weeks
5 years or more	4 weeks

Either party may terminate by giving notice or paying salary in lieu of notice.

Termination of Employment

With Notice

Either party can terminate by serving the required notice period or paying salary in lieu.

Without Notice (Summary Dismissal)

An employer can dismiss without notice only for serious misconduct:

• Dishonesty or fraud
• Willful disobedience of lawful orders
• Habitual neglect of duties
• Conduct incompatible with the employment

An inquiry must be conducted before summary dismissal.

Wrongful Dismissal

If an employee believes they were wrongfully dismissed, they can file a claim with the Employment Claims Tribunal (ECT). Wrongful dismissal includes:

• Dismissal without just cause or excuse
• Dismissal as retaliation (e.g., for filing a workplace complaint)
• Constructive dismissal (employer makes conditions intolerable)

Statutory Entitlements

These are minimum entitlements that cannot be contracted away:

Annual Leave

Years of Service	Leave Days
1st year	7 days
2nd year	8 days
3rd year	9 days
4th year	10 days
5th year	11 days
6th year	12 days
7th year	13 days
8th year and beyond	14 days

Sick Leave

• 14 days paid outpatient sick leave per year
• 60 days paid hospitalization leave per year (inclusive of the 14 days)
• Requires medical certificate from a company-approved doctor

Maternity Leave

• 16 weeks for qualifying mothers
• First 8 weeks paid by employer, remaining 8 weeks government-paid (for Singapore citizens)
• Eligibility: served at least 3 months before delivery

Paternity Leave

• 2 weeks government-paid (for Singapore citizen fathers)

Public Holidays

• 11 gazetted public holidays per year
• If required to work, entitled to an extra day's salary or a replacement holiday

Non-Compete and Restraint of Trade Clauses

Non-compete clauses are common in Singapore employment contracts but are only enforceable if reasonable. Courts assess:

• Duration: 6–12 months is generally reasonable; beyond that requires strong justification
• Geographic scope: Must be proportionate to the business interest
• Scope of restricted activities: Must be specific, not overly broad
• Legitimate business interest: Must protect trade secrets, client relationships, or confidential information

An unreasonable restraint of trade clause is void and unenforceable.

Confidentiality Clauses

Most employment contracts include confidentiality obligations. Even without an explicit clause, employees owe an implied duty of confidence regarding:

• Trade secrets
• Client lists and business strategies
• Proprietary processes and systems

This duty survives termination of employment.

Sharing Employment Contracts Securely

Employment contracts contain highly sensitive information — salary, benefits, personal details, and confidentiality provisions. When sharing these documents:

• Avoid plain email attachments — emails can be forwarded, intercepted, or accessed on compromised devices
• Use password-protected sharing — platforms like LOCK.PUB let you create a password-protected memo containing contract details that only the intended recipient can access
• Set expiration dates — ensure access links expire after the document has been reviewed

This is especially important when sharing offer letters with candidates, sending contracts to legal advisors for review, or distributing updated terms to existing employees. LOCK.PUB provides a simple way to protect sensitive employment documents with password-protected, time-limited access.

Checklist: Before You Sign an Employment Contract

For Employers

• Include all mandatory Key Employment Terms
• Clearly state probation period and conditions
• Define notice period for both parties
• Include reasonable non-compete clauses (if any)
• Specify overtime arrangements for eligible employees
• Add confidentiality and IP assignment clauses
• Have the contract reviewed by an employment lawyer

For Employees

• Verify salary, allowances, and payment schedule
• Understand probation terms and confirmation criteria
• Check notice period requirements
• Review non-compete scope and duration
• Confirm leave entitlements meet statutory minimums
• Understand overtime eligibility and rates
• Keep a signed copy in a secure location

Key Takeaways

1. The Employment Act now covers all employees regardless of salary (since April 2019)
2. KETs are mandatory — employers must provide written terms within 14 days
3. Probation is not legally required but is standard practice (3–6 months)
4. Non-compete clauses must be reasonable to be enforceable
5. Statutory entitlements cannot be reduced by contract
6. Share contracts securely — use tools like LOCK.PUB for password-protected document sharing

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This article is for informational purposes only and does not constitute legal advice. For specific employment matters, consult an employment lawyer licensed in Singapore or contact MOM.