Overview of Singapore Employment Law and HR Policies

Employment Law Overview

• Key Legislations:
  • Employment Act
  • Workmen's Compensation Act
  • Women's Charter
  • Central Provident Fund Act
• Legal Characteristics:
  • Aims to protect employees' rights and welfare
  • Stipulates minimum wage, working hours, leave entitlements, and severance pay

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Open-ended contracts
• Contractual Terms:
  • Must include job description, salary, working hours, etc.
• Language and Currency:
  • Contracts must be in English or Malay
  • Currency is Singapore Dollar (SGD)

Working Hours Regulations

• Standard Working Hours:
  • 44 hours per week
• Rest Days and Breaks:
  • At least one rest day per week
  • At least 30 minutes of rest time per day

Leave Policies

• Annual Leave:
  • 7 days per year after 12 months of continuous service
  • Increases by 1 day per year after 1 year of service, up to 14 days per year after 8 years of continuous service
• Public Holidays:
  • 10 statutory public holidays
• Special Leave:
  • Sick Leave: 14 days of outpatient leave and 60 days of hospitalization leave per year after 6 months of continuous service
  • Maternity Leave: 16 weeks of paid maternity leave after 3 months of continuous service
  • Paternity Leave: Eligible fathers can take 2 weeks of paid paternity leave

Employee Termination and Severance

• Notice Period:
  • Probationary period: 1 day
  • After probation: 1 week to 4 weeks, depending on years of service
• Severance Pay:
  • 1 month's salary for every year of service after 2 years
• Unfair Dismissal Protection:
  • Employees have the right to appeal against unfair dismissal

Taxation

• Personal Income Tax:

  • Salary Range (SGD)	Tax Rate
    0 - 20,000	0%
    20,000 - 30,000	2%
    30,000 - 40,000	3.5%
    40,000 - 80,000	7%
    80,000 - 120,000	11.5%
    120,000 - 160,000	15%
    160,000 - 200,000	18%
    200,000 - 240,000	19%
    240,000 - 280,000	19.5%
    280,000 - 320,000	20%
    Above 320,000	22%

• Social Security Contributions:

  • Both employers and employees contribute to the Central Provident Fund (CPF)
  • Employer contributes 17%, employee contributes 20%

Health Insurance

• Insurance Policy:
  • All employees must be covered by MediShield Life basic health insurance
• Coverage:
  • Major hospitalization and some outpatient expenses

Compensation and Benefits

• Minimum Wage:
  • No statutory minimum wage
• Salary Structure:
  • Basic salary, bonuses, allowances, etc.
• 13th Month Salary:
  • Common practice, usually paid at the end of the year

Work Permits and Visas

• Permit Requirements:
  • Foreign employees require a work permit or employment pass
• Application Process:
  • Employer applies to the Ministry of Manpower on behalf of the employee

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Singapore
• Common Provisions:
  • Restricting employees from working for competitors after leaving employment
  • Protecting employers' trade secrets

Training and Development

• Legal Requirements:
  • Employers must provide safety training to employees
• Government Support:
  • Government provides training grants and programs

Workplace Diversity and Inclusion

• Legal Requirements:
  • Prohibits discrimination based on race, religion, gender, etc.
• Enforcement Measures:
  • Employers must have anti-discrimination policies and procedures in place

Remote Work Policies

• Legal Framework:
  • Remote work is allowed, but employers must comply with the Employment Act
• Tax and Insurance Implications:
  • Remote work may affect tax and social security contributions

Authoritative Website Addresses

• Ministry of Manpower Singapore