Singapore HR Information

Updated on: 2025/08/04 14:03 (UTC)

Overview

Employment in Singapore is largely governed by the Employment Act, the Industrial Relations Act, the Trade Unions Act, the Work Injury Compensation Act and the Workplace Safety and Health Act, as well as by common law.

Hiring

Employment Contracts

While a written employment contract is not required, all employers must provide employees with a written list of key employment terms within 14 days after the commencement of employment. The list must include the following information:

• the employer’s full name;
• the employee’s full name;
• the employment start date;
• the employee’s job title;
• the employee’s job duties;
• the duration of the employment term, if a fixed-term agreement;
• the probationary period, if applicable;
• the employee’s work schedule;
• salary periods;
• the employee’s base salary;
• fixed allowances;
• additional incentives (e.g., bonuses);
• fixed deductions;
• medical and dental insurance and benefits; and
• leave entitlements (annual, sick, maternity, child care, etc.).

Restrictions on Hiring

With certain exceptions, the legal minimum age for employment in Singapore is 16.

Exceptions include:

• children may be employed in any industrial business if the only other employees are members of the child’s family,
• children age 15 may be employed in industrial undertakings that the minister of manpower has not forbidden for 15-year-old employees and in any apprenticeship program approved and supervised by the Institute of Technical Education,
• children age 13 and older may be employed in light work suited to the child’s capacity in a nonindustrial undertaking,
• children may be employed in any work approved and supervised by the Ministry of Education or the Institute of Technical Education, and
• children may be employed in any work carried on in any technical, vocational, or industrial training school or institute.

While a person under the age of 18 is deemed competent to enter into an employment contract, the contract is not enforceable except for that person’s benefit.

Employers in the service industry are only permitted to employ foreign work permit holders up to a limit of 35 percent of their total workforce.

Recordkeeping

All employers must maintain detailed records of employees covered under the Employment Act. At a minimum, the following employee records must be kept on file:

• the employee’s address;
• the employee’s National Registration Identity Card number or for noncitizens the employment pass number and its expiration date;
• the employee’s date of birth;
• the employee’s gender;
• the date employment commenced;
• the date employment terminated;
• the employee’s working hours, including meal times and breaks;
• dates of public holidays taken and
• dates of leave.

For current employees, the employer must keep all employment records for the most recent two years. For former employees, records must be kept for at least one year after the employee leaves employment.

Background Checks

Under the Personal Data Protection Act 2012, employers seeking to collect information for purposes of background checks may collect, use or disclose personal data about an individual only for purposes “that a reasonable person would consider appropriate in the circumstances.”

Although the act has provisions that require notifying a data subject of the nature of the information being collected and the purpose for which it will be collected, used or disclosed and obtaining the subject’s general consent, these provisions do not apply to most background checks, because the PDPA contains a specific exception to the consent requirement for information being collected solely for “evaluative purposes.” The PDPA defines “evaluative purposes” to include making decisions on employee hiring, promotion and dismissal.

Noncompetition Agreements

A noncompetition agreement is enforceable if it reasonably seeks to protect the interests of the parties concerned and the interests of the public. Significant factors in determining enforceability include the geographic scope of the agreement, the type of work forbidden, the duration of the restrictions and the extent to which the employee had access to confidential business information while employed. Enforceability of noncompetition agreements is determined on a case-by-case basis.

Reference Citations

Employment Contracts: Employment Act, Chapter 91, 1968, §§ 8-9

Restrictions on Hiring: Employment Act, Chapter 91, 1968, §§ 67A-69

Recordkeeping: Employment Act, Chapter 91, 1968, § 96

Background Checks: Personal Data Protection Act, 2012, No. 26, §§ 3, 13

Immigration and Work Permits

In General

Foreign nationals may be employed in Singapore only if they have obtained a work pass from the Controller of Work Passes. Employers pay a monthly assessment for each foreign employee and must keep a record of all persons for whom a work pass has been issued. A foreign worker must not be in Singapore at the time of the work permit application.

There are different types of work permits for various types of work. The duration of the work permit is usually two years.

Visas and Work Permits

Foreign nationals may be employed in Singapore only if they have obtained a work pass from the Controller of Work Passes. Employers pay a monthly assessment for each foreign employee and must keep a record of all persons for whom a work pass has been issued.

A foreign worker must not be in Singapore at the time of the work permit application. There are different types of work permits for various types of work. The duration of the work permit is usually two years.

The most common types of work permits are as follows:

• Employment Pass (EP): This visa is issued to foreign professionals, managing directors, general managers, CEOs, executives, and specialists that meet a minimum salary threshold.
• S Pass: Mid-level skilled foreigners (e.g. technicians) that meet a minimum salary threshold can apply for an S Pass. The number of S Pass holders employers can hire is limited by a quota. Employers must also pay a monthly levy for these workers.
• Entrepreneur Pass (EntrePass): This one-year visa allows eligible foreign entrepreneurs to start and operate a business in Singapore.
• Personalized Employment Pass (PEP): Individuals that can apply for this three-year visa must be overseas foreign professionals that meet the minimum salary threshold as required by law. PEP holders can generally take on employment in any sector and do not have to reapply for a visa when changing jobs.
• Miscellaneous Work Pass: This visa, valid for up to 60 days, is for eligible foreigners working on short term assignments.

The Ministry of Manpower has developed an online web portal to enable employers to apply for work permits via the internet.

Effective September 1, 2023, Singapore will introduce a new points-based Complimentary Assessment Framework (COMPASS). New Employment Pass (EP) applicants will be required to score at least 40 points under the framework, which will take into account factors such as salary, qualifications, diversity and support for local government. EP renewal applications take effect on September 1, 2024. Applicants will be exempt from COMPASS if their salary exceeds a maximum threshold or they are filling short-term roles.

Overseas Networks and Expertise (ONE) Pass. Effective Jan. 1, 2023, this five-year visa will be available to individuals who earn at least S$30,000 per month or can demonstrate that they play a leading role in an established company. The visa allows workers’ dependents to seek employment.

Post-Entry Requirements

An employer must place a S$5,000 security bond for each non-Malaysian work permit holder it wants to employ. The bond must be purchased before the worker arrives in Singapore.

Employers also must buy and maintain medical insurance coverage of at least S$15,000 per year for each work permit holder. The insurance should cover inpatient care and day surgery, including hospital bills for conditions that may not be work related.

Non-Singaporeans who have not reached the age of 50 may become permanent residents of Singapore by submitting an application for an entry permit. Applications of those 50 or older are considered on a case-by-case basis.

Singapore is implementing a new “Settling-in Program” to help foreign workers adapt to working and living in the country. Employers are responsible for enrolling foreign workers in the program and paying the fees. The one-day program will be conducted in the foreign worker’s native language.

Forms

Employment Pass

Reference Citations

Visas and Work Permits: Apply for a Work Permit, Guidance from Ministry of Manpower

Post-Entry Requirements: Security bond requirements for foreign workers; Medical insurance requirements for foreign workers; New Settling-in Programme for Foreign Workers

Nondiscrimination

In General

Employers may not discriminate against employees or prospective employees on the basis of religion, race, descent, place of birth, union membership, age, gender, marital status, criminal record, disability or pregnancy. Employers found guilty of workplace discrimination may be restricted from obtaining new work passes for up to 24 months, and are not allowed to renew a work pass during the penalty period. Employers and key personnel who make false declarations that they have considered all candidates fairly may be jailed for up to two years, fined up to S$20,000, or both.

Types of Discrimination

The Singapore constitution provides that all persons are equal before the law and entitled to its equal protection and expressly bars “discrimination against citizens of Singapore on the ground only of religion, race, descent or place of birth in . . . any trade, business, profession, vocation or employment.”

The Industrial Relations Act also bars employers from discriminating against employees because of union membership.

The Ministry of Manpower’s Tripartite Guidelines on Nondiscriminatory Job Advertisements requires employers to provide equal opportunity in the selection of candidates regardless of age, race, gender, religion, marital status, criminal record, disability or pregnancy.

Age Discrimination

The Retirement and Reemployment Act bars employers from terminating any employee who is under the prescribed retirement age because of that employee’s age.

Gender Discrimination

There is no legislation in Singapore addressing sexual harassment in the workplace.

Sexual Orientation Discrimination

No laws explicitly protect the LGBT community from discrimination based on sexual orientation.

Reference Citations

Nondiscrimination: Singapore Constitution, 1965, § 12; Industrial Relations Act, 1960, ch. 136, § 80

Age Discrimination: Retirement and Re-Employment Act, 1993, Ch. 274A, § 4

Employee Privacy

Employee Data

Employers may collect personal data as long as the purpose for the collection would be considered appropriate to a reasonable person.

Employers generally must gain employees’ consent prior to collecting, using, and disclosing their personal data. The employee must know the purpose for which the personal data is collected in order for the consent to be valid. Employees can withdraw consent at any time and cannot be impeded from doing so by their employer.

Consent is not required when:

• the collection is reasonable for the managing or terminating of an employment relationship;
• the data will be used for “evaluative purposes” such as determining whether to employ, promote, or dismiss an employee; and
• the data is required by a third party to help it determine whether to proceed in a business transaction with the employer.

An employer must make reasonable efforts to ensure employee data is accurate and complete if the data is likely to be used to make a decision affecting the employee or to be disclosed to another organization.

Employers must cease to retain personal data when the purpose for which the personal data was collected has ended or retention is no longer necessary for legal or business reasons. Employees have the right to access their own personal information and correct errors or omissions in the data.

Personal data cannot be transferred outside Singapore if it cannot be protected in a manner comparable to the protection afforded it in Singapore.

Employee Monitoring and Surveillance

Employers generally must provide notice and obtain employees’ consent prior to monitoring them by video or observing their e-mails. On the other hand, employers do not need to obtain employee consent when monitoring employees for the purpose of managing or terminating an employment relationship between the employer and employee.

Reference Citations

Employee Data: Personal Data Protection Act, 2012, No. 26, §§ 13-26

Employee Monitoring and Surveillance: Personal Data Protection Act, 2012, No. 26, § 20

Compensation

Hours of Work

The standard workday in Singapore is nine hours for a five-day workweek, eight hours for longer workweeks and in most cases cannot exceed 12 hours. The standard workweek is 44 hours. An employee may not be required to work more than six consecutive hours without a rest break.

Employees are entitled to one rest day per week without pay, either Sunday or another day determined by the employer.

For employees engaged in shift work, the employer may designate any continuous period of 30 hours as the day of rest.

No employee may be required to work on a rest day except in cases of:

• continuous shift work,
• actual or threatened accident,
• work that is essential to the life of the community,
• work that is essential for defense or security,
• urgent work that must be done to machinery or plant,
• an interruption of work which was impossible to foresee or
• work to be performed by employees in any industrial undertaking essential to the economy of Singapore or any essential services.

Minimum Wage

There is no general minimum wage law in Singapore, but the National Wage Council issues wage guidelines.

Under the Progressive Wage Model overseen by the Ministry of Manpower, workers in the security, landscaping, and cleaning industry sectors must be paid minimum wages that vary based on their job responsibilities.

Overtime

Overtime work is all work in excess of normal hours of work (excluding breaks). Work in excess of normal hours must be paid at a rate of time-and-one-half. Employees can claim overtime if their salaries are below certain thresholds.

Employees are not permitted to work more than 72 hours of overtime per month.

An employee who volunteers to work on a rest day or works on a rest day at the request of the employer is entitled to half a day’s wages for up to half a day’s work, a full day’s wages for work that exceeds half a day but not the employee’s normal work hours, or a full day’s wages plus time and a half for any hours worked in excess of the employee’s normal work hours.

An employee required to work on a holiday is entitled to a full day’s pay in addition to the employee’s regular rate of pay for any hours worked on the holiday. Managers and executives are not eligible for overtime premiums.

Wage Payment

Employees must be paid at least once a month in legal tender. Payment in any other form is forbidden.

Regular wages must be paid no later than seven days after the last day of the salary period during which they were earned. Overtime must be paid no later than 14 days after the last day of the salary period during which the overtime work was performed.

Payment of wages must be made on a working day during working hours at the workplace or another place agreed to by the employer and the employee. Alternatively, wages may be paid into an account with a bank in Singapore that is in the name of the employee.

Detailed pay slips must be provided at least once per month to all employees with the salary payment or within three days after the salary is paid.

Each pay slip must contain the following information:

• the employer’s full name;
• the employee’s full name;
• the payment date(s);
• the basic salary for the pay period;
• the start and end dates of the pay period;
• fixed allowances paid during the pay period;
• any other additional payments made during the pay period;
• deductions made during the pay period;
• overtime hours worked and overtime pay earned, if applicable;
• the employee’s net salary for the pay period and
• the start and end dates of the overtime pay period (if applicable and if different from the regular pay period).

An employer may take deductions from an employee’s wages for:

• absence from work;
• damage to or loss of goods or money entrusted to an employee if directly attributable to the employee’s neglect;
• the actual cost of meals supplied by the employer at the employee’s request;
• housing supplied by the employer;
• such amenities and services supplied by the employer as the commissioner for labor may authorize, but not including the supply of tools and raw materials required for employment;
• recovery of advances or loans or for adjustment of overpayments of salary, subject to the limitation that no deduction may exceed 25 percent of salary;
• income tax payable by the employee;
• contributions payable by an employer on behalf of an employee in accordance with the provisions of the Central Provident Fund Act;
• contributions requested by the employee to a retirement fund;
• contributions made with the written consent of the employee to a cooperative society and
• other reasons approved by the minister of manpower.

Mandatory Bonuses

Singapore’s labor code does not address bonuses, although it is common for employers to voluntarily provide an extra month’s wage payment.

Reference Citations

Hours of Work: Employment Act, Chapter 91, 1968, § 38

Overtime: Employment Act, Chapter 91, 1968, § 38

Wage Payment: Employment Act, Chapter 91, 1968, §§ 21, 25, 27, 56

Benefits

Vacation

Employees who have worked for an employer for at least three months are entitled to seven days’ paid annual leave and accrue one additional day for each subsequent year of service after the first up to a maximum 14 days of paid annual leave. An employee who has completed at least three months of service in a given calendar year is entitled to leave in proportion to the number of months of service completed in that year.

An employee forfeits annual leave if absent from work without the employer’s permission or without a reasonable excuse for more than 20 percent of the working days in the months or year in which the entitlement to leave accrues.

The employer must allow the employee to take leave within 12 months of its accrual. Any leave not taken within 12 months of accrual is forfeited.

Holidays

Under the Holidays Act, employers are required to provide paid time off to employees for the following public holidays:

• Jan. 1: New Year’s Day
• Chinese New Year (two days)
• Good Friday
• May 1: Labor Day
• Vesak Day (Buddha’s birthday)
• Aug. 9: National Day
• Hari Raya Puasa (End of Ramadan)
• Deepavali (Hindu New Year)
• Hari Raya Haji (Feast of Sacrifice)
• Dec. 25: Christmas Day

When a holiday falls on a Sunday, the next day that is not a holiday is celebrated as the holiday. If two holidays fall on the same date, the president may declare any other day in that year a public holiday.

If a public holiday falls on an employee’s rest day, the next working day will be a paid holiday for that employee.

An employee who is absent from work on the day before or after a holiday without the consent of the employer or without reasonable excuse will not be paid for the holiday.

An employee required to work on a holiday is entitled to an extra day’s salary or a full-day off.

Maternity Leave

Female employees are entitled to 16 weeks of paid maternity leave if they have worked for their employer for at least three months and the child is—or will be—a Singapore citizen. The first eight weeks of leave are paid by the employer; the remaining eight weeks are paid by the government. The paid benefit is capped at S$10,000 per month.

A woman qualifies for only 12 weeks’ leave if she has worked for her employer less than three continuous months or if her child is not a Singaporean citizen. She will receive eight weeks’ pay from her employer if she has fewer than two living children of her own at the time of delivery. The remaining four weeks are unpaid.

If a mother seeks to use maternity leave and the father, with the mother’s agreement, seeks to use shared parental leave for the same child, the mother’s total number of available weeks of maternity leave would be reduced by the number of shared paternal leave taken by the father.

If at least one week’s notice of intent to take maternity leave is not given, leave payment is halved.

An employer may not require an employee to work at any time during the first four weeks after childbirth. With the consent of the employer, the final eight weeks of maternity leave may be taken on a flexible basis at any time before the child’s first birthday.

Employees cannot be dismissed while they are on maternity leave.

Paternity Leave

Working fathers who have been continuously employed for at least three months are entitled to two weeks of government-paid paternity leave if:

• they are married to the child’s mother, and
• the child is a citizen of Singapore or will become a citizen of Singapore by the time he or she is one year old.

The two weeks of leave can be taken:

• in a continuous block within 16 weeks of the child’s birth; or
• within 12 months from the birth of the child (subject to an agreement with the employer).

Working fathers are also entitled to share 4 weeks of their wife’s 16 weeks of government-paid maternity leave.

Sick Leave

Following an examination at the employer’s expense by a medical practitioner of the employer’s choosing, an employee with at least six months’ service is entitled to paid sick leave up to 14 days per year if no hospitalization is required. If hospitalization is required, sick leave is limited to the lesser of 60 days or 14 days plus the number of days the employee was hospitalized. An employee with at least three months’ service but less than six months’ is entitled to sick leave proportionate to the time worked.

An employee whose sick leave has not been certified by a medical practitioner or who has failed to notify the employer within 48 hours of beginning sick leave is deemed to be away from work without permission and without a reasonable excuse.

Other Leave

Adoption leave. Adoptive mothers of children under 12 months old are entitled to 12 weeks’ paid leave. To qualify, the woman must have worked for her employer at least three months immediately prior to the adoption and the child must be a Singapore citizen. If the child is a foreigner, one of the adoptive parents must be a Singapore citizen and the child must become a Singapore citizen within six months of adoption.

Adoption leave must be concluded prior to the child’s first birthday. The paid benefit is capped at S$10,000 per month. The first four weeks of the leave period are paid by the employer; the remaining eight weeks are paid by the government.

Adoptive fathers of children under 12 months old are entitled to two weeks’ paid leave. To qualify, the father must have worked for his employer at least three months immediately prior to the adoption and the child must be a Singapore citizen. If the child is a foreigner, one of the adoptive parents must be a Singapore citizen and the child must become a Singapore citizen within six months of adoption.

Child care leave. An employee who has at least three months’ service with an employer is entitled to six days per year of leave to care for a child younger than seven years old. To qualify, the child must be a Singapore citizen. The first three days of child care leave are employer-paid, and the last three are paid by the government.

Pensions and Social Security

The minimum legal retirement age is 62, although effective July 1, 2017, employers must offer re-employment to retired employees up to the age of 67.

The Central Provident Fund (CPF) provides four types of individual accounts for its members. These are:

• an ordinary account to finance the purchase of a home, make approved investments or continue education;
• a special account for retirement and retirement-related investments;
• a Medisave account for certain medical expenses, including maternity and
• a retirement account set up at age 55 to finance periodic payments during retirement.

Workers’ Compensation

The Work Injury Compensation Act (WICA) allows employees to make claims for work-related injuries or diseases without having to file a civil suit under common law. WICA covers any local or foreign employee who is under a contract of service or contract of apprenticeship, regardless of salary, age or nationality.

WICA allows individuals to make a claim for compensation even if:

• they no longer work for the employer or their work pass is cancelled;
• the accident happened while they were on an overseas assignment; or
• the accident happened while on a flexi-work arrangement that they agreed with their employer.

If an employee suffers a specified occupational disease or a work-related injury, the employer must pay compensation, unless the disease or injury:

• is directly attributable to the employee’s use of alcohol or a prescription drug not prescribed by a doctor; or
• resulted from deliberate self-injury or aggravation of an accidental injury.

In the case of temporary incapacity, the employee is entitled to full pay for 60 days if hospitalized, 14 days if not hospitalized, plus a further payment of two-thirds of salary during the period of incapacity or for one year, whichever is shorter.

If the employee dies or suffers permanent total or partial incapacity as a result of a work-related disease or injury, the employee or the employee’s dependents are entitled to lump-sum compensation based on the employee’s age, earnings and degree of disability.

Amendments to WICA in 2020 increased the salary threshold for non-manual employees requiring work injury compensation insurance to S$2,600 and expanded the scope of compensation to include light duties. The maximum compensation amount also increased to S$225,000 for death and S$289,000 for total permanent incapacity.

Reference Citations

Vacations: Employment Act, Chapter 91, 1968, § 43

Holidays: Employment Act, Chapter 91, 1968, § 88; Holidays Act, 1998, No. 8, § 4

Maternity Leave: Employment Act, Chapter 91, 1968, §§ 76-81

Paternity Leave: Child Development Co-Savings Act, Ch. 38A, § 12H-12I; Ministry of Manpower, Responsible Reemployment

Sick Leave: Employment Act, Chapter 91, 1968, § 89

Other Leave: Child Development Co-Savings Act, Chapter 38A, § 12B

Pensions and Social Security: Central Provident Fund Act, ch. 36, § 77

Workers’ Compensation: Work Injury Compensation Act, Ch. 354, §§ 3(5), 4(1)

Labor Relations

In General

An employment contract may not restrict the right of an employee to join a registered trade union, to participate in the activities of a registered trade union or to associate with other persons for the purpose of forming a trade union.

A trade union must register with the Registrar of Trade Unions within one month of the date the union is established.

A registered trade union recognized by an employer may serve on that employer a notice of proposals for a collective bargaining agreement relating to any industrial matters, subject to certain limitations, and inviting the employer to negotiate. The employer may also serve notice on the trade union.

Right to Organize

An employment contract may not restrict the right of an employee to join a registered trade union, to participate in the activities of a registered trade union or to associate with other persons for the purpose of forming a trade union.

It is a criminal offense punishable by a fine or a term of imprisonment to induce or attempt to induce a person to refrain from joining or to resign from a trade union.

A trade union must register with the Registrar of Trade Unions within one month of the date the union is established.

An application for registration must be signed by at least seven members of the union and be accompanied by the prescribed fee, a copy of the rules of the union and a statement by the members making the application and the officers of the union.

The registrar may issue a certificate of registration if satisfied that:

• the union has complied with the provisions of the Trade Unions Act;
• the objects, rules and constitution of the union are lawful and not oppressive or unreasonable;
• the union is not likely to be used for unlawful purposes or for purposes inconsistent with its objects and rules and
• the union is not likely to be used against the interests of the employees in the particular trade, occupation or industry the union represents.

The registrar may decline to issue a certificate of registration if the trade union has failed to meet any of these requirements or if there is an existing trade union registered to represent the particular trade, occupation or industry for which registration of the applicant union is being sought.

If a union fails to make a timely application for registration or if registration is refused, withdrawn or cancelled, the union is deemed an unlawful association and may not represent its members in any dispute.

A registered trade union recognized by an employer may serve on that employer a notice of proposals for a collective bargaining agreement relating to any industrial matters, subject to certain limitations and inviting the employer to negotiate. The employer may also serve notice on the trade union.

The following matters may not be the subject of collective bargaining:

• the promotion of any employee,
• the transfer of an employee unless the transfer results in a detrimental change to the terms of employment,
• the hiring of an employee to fill a vacant position,
• the termination of an employee because of downsizing or reorganization,
• the dismissal and reinstatement of an employee under specific circumstances or
• the assignment by an employer to an employee of duties consistent with the terms of employment.

A collective bargaining agreement must be in writing and signed by the parties. The officers of a union have the authority to bind the union’s members to a collective bargaining agreement without obtaining ratification by the members. The agreement must specify its duration, which must not be less than two years or more than three years, and make provision for the resolution of disputes, including arbitration.

A copy of the agreement must be submitted within a week of its signing to the Registrar of the Courts for certification.

A certified collective bargaining agreement is binding on:

• the parties to the agreement;
• any successor to the business of an employer bound by the agreement, including any corporation that acquires the employer;
• any successor to a trade union that was a party to the agreement and
• any person or trade union upon whom it is declared to be binding by order of the minister of manpower.

An employee may apply to the employer for leave to tend to union business, which the employer must grant if the time requested is reasonable. The leave will be without pay unless its purpose is to represent members of the trade union in matters concerning the employer.

Works Councils

There is no provision in the law for works councils in Singapore.

Dispute Resolution

If an employer or a union does not accept within seven days a notice of invitation to negotiate a collective bargaining agreement, the party that served the notice may notify the commissioner for labor, who will attempt to persuade the recalcitrant party to negotiate. If there is continued refusal to negotiate, the commissioner will notify the minister of manpower and the Registrar of the Courts that a trade dispute exists.

If a notice of invitation to negotiate a collective bargaining agreement is accepted but no agreement reached within 14 days, any party to the negotiations may notify the commissioner, who will consult with the parties and attempt to assist them in reaching an agreement by conciliation. If there is a continued failure to reach an agreement, the commissioner will notify the minister of manpower and the registrar that a trade dispute exists.

The commissioner’s notice of the existence of a trade dispute will identify the parties, the matters in dispute and the reasons for the failure to negotiate. Upon receiving notice of a trade dispute, the registrar will immediately bring it to the notice of the president. The minister may direct the parties to engage in further conciliation to attempt to settle the matter.

When a court has jurisdiction, it must expeditiously settle the trade dispute through arbitration, taking into account not only the interests of the parties but those of the community as a whole, as well as the condition of the economy and any recommendations from the minister. A court may not consider a dispute relating to the dismissal or reinstatement of an employee except when the employee’s termination is in relation to union activity.

On April 1, 2017, Singapore launched the Employment Claims Tribunal (ECT), which aims to provide speedy resolution to relatively low value salary disputes. The ECT covers all statutory salary-related claims up to a maximum claim amount of S$20,000 (or up to S$30,000 for claims which have undergone mediation through the Tripartite Mediation Framework or mediation assisted by unions recognized by the Industrial Relations Act).

Strikes and Lockouts

A union may not commence, promote, organize or finance any strike or any form of industrial action affecting any of its members without first obtaining the consent by secret ballot of a majority of the affected members.

Employees may not strike or engage in any other form of industrial action to:

• support a dispute involving other workers,
• support a dispute that has been submitted to the Industrial Arbitration Court or
• put pressure on the government either directly or indirectly.

According to the International Trade Union Confederation, strikes in Singapore rarely occur, with only two officially recorded days of strike action since 1978.

Picketing in Singapore is lawful unless it involves intimidation, obstruction or breach of the peace.

Successorship Clauses

A change in ownership of a business does not terminate existing employee contracts, which continue in effect as though they had been entered into by the new owners.

Any employment prior to the transfer of ownership is considered to be service with the new owners without a break in continuity. The new owner assumes all rights, powers, duties and liabilities of the prior owner under the existing employment contracts, and all acts of the prior owner in relation to the employment contracts are considered to be acts of the new owner.

As soon as possible before a transfer of ownership takes place, the prior owner must notify affected employees and any trade union representing them of the date of the transfer, the reasons for it, the implications of it for employees and any acts the prior owner or new owner expects to take with respect to the employees as a result of the transfer of ownership.

If the previous owner has recognized a registered union prior to transfer of ownership, the validity of the collective agreement will be extended for 18 months beyond the date of transfer or until the expiration of the collective agreement, whichever is later.

Reference Citations

Right to Organize: Employment Act, 1968, ch. 91, § 17; Trade Unions Act, 1940, ch. 333, § 8; Industrial Relations Act, 1960, ch. 136, § 18

Dispute Resolution: Industrial Relations Act, 1960, ch. 136, § 30E

Strikes and Lockouts: Trade UnionsAct, 1940, ch. 333, § 27

Successorship Clauses: Industrial Relations Act, 1960, ch. 136, § 25(5A)

Safety, Health and Security

In General

Every employer must take all necessary measures to ensure the safety and health of its employees at work, including maintaining a safe work environment, ensuring that adequate safety measures are taken and ensuring that employees have adequate instruction, information, training and supervision in performing their work.

Workplace Safety and Health

Every employer must, as far as is reasonably practicable, take all necessary measures to ensure the safety and health of its employees at work and to ensure the safety and health of all other persons who are affected by the employer’s business. Such necessary measures include:

• providing and maintaining a work environment that is safe and without risk to health and has adequate facilities and arrangements for employee welfare;
• ensuring that adequate safety measures are taken with respect to any machinery, equipment, plant, article or process used by employees;
• ensuring that employees are not exposed to hazards from the arrangement, disposal, manipulation, organization, processing, storage, transport, working or use of things in the workplace or near the workplace and under the control of the employer;
• developing and implementing procedures for dealing with emergencies that may arise at work and
• ensuring that employees have adequate instruction, information, training and supervision in performing their work.

Employers must report to the Ministry of Manpower all work-related medical leave or employees placed on light duties.

Drug and Alcohol Use

Smoking in Singapore is prohibited in nearly all indoor locations open to the public, as well as in offices and factories. An employer may, however, designate an enclosed area in an office as a smoking area, provided it is independently ventilated, is not required to be used by any employee for the performance of employment duties and is not a pantry or other common area to which employees have access.

Reference Citations

Workplace Safety and Health: Workplace Safety and Health Act, 2009, ch. 354A, § 12

Termination

Termination by Employer

Either party to an employment contract may at any time give notice to the other party of intent to terminate the contract. Notice of termination must be in writing.

Unless the notice period is specifically set forth in the contract, the following notice must be given:

• one day’s notice if the period of employment is less than 26 weeks,
• one week’s notice if the period of employment is at least 26 weeks but less than two years,
• two weeks’ notice if the period of employment is at least two years but less than five years and
• four weeks’ notice if the period of employment is five years or more.

Either party may choose to waive the right to receive notice.

In lieu of providing the requisite notice, the terminating party may pay the other party an amount equal to the wages the employee would have earned during the notice period.

An employment contract may be terminated without notice under the following conditions:

• The right to receive notice has been waived.
• The terminating party has paid the other party an amount equal to the wages the employee would have earned during the requisite notice period.
• The other party has willfully breached a condition of the contract.
• The employer has breached the contract by failing to pay salary.
• The employee has breached the contract by being continuously absent from work for more than two days without permission from the employer, reasonable excuse or attempt to inform the employer of the reason for absence.
• After due inquiry, the employer determines that the employee engaged in conduct inconsistent with the fulfillment of the express or implied conditions of service. If the employee believes the termination to be without just cause, he or she may apply for reinstatement in writing within one month of dismissal to the minister of manpower. The decision of the minister is final and may not be challenged in court.
• The employee or a dependent is immediately threatened by danger of violence or disease that was not anticipated when the employee entered into the employment contract.

An employer may not:

• give notice of dismissal to an employee on maternity leave;
• terminate an employee because of the employee’s union activities or
• terminate an employee who is under the prescribed retirement age because of that employee’s age.

Dismissal with notice will be deemed wrongful when the dismissal is:

• for discriminatory reasons,
• aimed at depriving the employee of benefits or entitlements he would have already earned,
• designed to punish the employee for exercising an employment right, or
• for a different reason other than what the employee was told.

Plant Closings and Mass Layoffs

The nonbinding Tripartite Guidelines on Managing Excess Manpower strongly encourage companies to consider mass layoffs only as a last resort. To help save jobs, the guidelines encourage companies to consider cost-cutting measures in lieu of layoffs, redeploying employees to perform different work, reducing wages where possible and implementing shorter workweeks, flexible workweeks or temporary layoffs.

When layoffs are unavoidable, the guidelines encourage employers to notify the Ministry of Manpower as soon as possible to allow time for the ministry and other relevant agencies to help employees find alternative employment and/or provide them with vocational training.

Payment on Termination

Total salary and any other amounts due to a terminated employee must be paid on the date of dismissal or at the latest within three business days thereafter.

Payment of wages to an employee who has resigned with the requisite notice must be made on the date the employment contract is terminated. When an employee resigns without proper notice, payment of wages must be within seven days of resignation. The employer may deduct from the salary due the amount the employee is liable to pay in lieu of proper notice.

Unless terminated for cause, an employee is entitled to be paid for all accrued leave.

An employee who has been in continuous service with an employer for at least two years and is laid off because of the employer’s downsizing is entitled to a “retrenchment benefit,” the amount of which is determined by negotiation. According to the nonbinding Tripartite Guidelines on Managing Excess Manpower, the prevailing norm for a retrenchment benefit is between two weeks’ and one month’s salary per year of service.

Unemployment Insurance

Singapore law does not provide for unemployment compensation.

Reference Citations

Termination by Employer: Employment Act, 1968, ch. 91, §§ 10-14

Plant Closings and Mass Layoffs: Tripartite Guidelines on Managing Excess Manpower and Responsible Retrenchment, 2016

Payment on Termination: Employment Act, 1968, ch. 91, §§ 22-23, 45

Personal Taxes

Residency Requirements

An individual is considered a resident for tax purposes if he or she is normally present in Singapore with only temporary absences, is a permanent resident who has established a permanent home in Singapore or is a foreigner who has stayed or worked in Singapore for 183 days or more in the year before the yearly assessment.

Taxable Income

Residents are taxed on their worldwide income, nonresidents only on Singapore-source income. Taxable income includes all income from employment, including salary, bonuses, director’s fees, commissions, gains from stock, retrenchment and retirement benefits and income received from any overseas pensions.

Tax Rates

Residents are taxed at progressive rates ranging from 0 percent to 22 percent based on income. Nonresidents are taxed on wages and salary at 15 percent or the resident rate, whichever is higher.

Generally, all employees who are Singapore citizens or Singapore permanent residents are required to participate in a compulsory, government-administered, social security savings plan known as the Central Provident Fund (“CPF”). Both employers’ and employees’ contribution rates will depend on a number of factors such as the employee’s citizenship status and age. The applicable employers’ rate ranges from 5.625 percent to 17 percent, subject to certain contribution ceilings. Employees contribute 20 percent of earnings, subject to certain limits.

Reference Citations

Residency Requirements: Income Tax Act, 1947, ch. 134, § 2 (“resident in Singapore”)

Tax Rates: Income Tax Act, 1947, ch. 134, § 40B

Web References

Law and Regulation

Employment Act

Industrial Relations Act

Singapore Statutes Online

Trade Unions Act

Tripartite Guidelines on Managing Excess Manpower and Responsible Retrenchment, 2016

Government Websites and Publications

Industrial Arbitration Court

Ministry of Manpower

Singapore Government Online

Singapore Public Holidays