Employment contracts Singapore

What should an employment contract in Singapore include?

In Singapore, an employment agreement should encompass the following details:

• Contact information of both the employer and employee.
• Job title and duties of the employee.
• Designated working hours and days.
• Agreed salary or wages, alongside any extra benefits.
• Conditions for termination, including notice periods.
• Provisions for confidentiality, with mutual consent.

Before signing, both parties should carefully review the terms outlined in the employment contract.

What types of employment contracts exist in Singapore?

Employment contracts in Singapore can be divided into several categories:

1. Permanent employment contract: This type of contract offers ongoing employment with no predetermined end date. Permanent employees typically receive benefits such as paid leave, medical insurance, and retirement benefits. Termination of employment under a permanent contract usually requires notice periods or severance pay as per Singapore’s employment laws.

2. Fixed-term employment contract: In this arrangement, employment is for a specific period, often to fulfil a particular project or cover for an employee on leave. Fixed-term contracts usually specify the start and end dates of employment. While fixed-term employees may receive some benefits similar to permanent employees, such as medical coverage, they may not have access to long-term benefits like CPF contributions for retirement.
3. Contractual employment: Unlike permanent employees, contractual employees may not receive the same benefits and protections. However, they may negotiate higher hourly rates or project-based compensation to compensate for the lack of long-term benefits. Contractual employment is prevalent in industries where short-term expertise or specialised skills are required, such as IT projects, consulting, or event management.

How to hire employees in Singapore?

In Singapore, establishing a registered business is typically a prerequisite for hiring workers. This involves officially registering your business with Singapore authorities and obtaining a business registration number. When recruiting employees in Singapore, it’s essential to comply with pertinent labour laws and regulations covering areas such as employment contracts, minimum wage, working hours, and employee benefits.

An alternative approach is to engage the services of a global recruitment solutions provider. Furthermore, Native Teams offers an Employer of Record solution, managing various tasks, including payroll, human resources, and tax preparation. We’re here to assist you, particularly when accessing accurate and current job-related information across multiple countries becomes challenging.