Employment law in Singapore

Employment law in Singapore is governed by a combination of statutory laws, common law principles, and government regulations, with the Employment Act being the central legislation that governs the rights and obligations of employees and employers. Singapore’s employment laws aim to protect workers' rights, ensure fair working conditions, and promote a harmonious relationship between employers and employees.

Here’s an overview of the key aspects of employment law in Singapore:

1. Employment Contracts

Types of Employment Contracts:

Indefinite-term contracts: This is the most common form of employment contract, where there is no fixed end date, and the contract continues until either party terminates it.

Fixed-term contracts: These contracts are for a specified duration. They automatically expire when the agreed period ends, but if they are continuously renewed, they may be considered as indefinite-term contracts under certain circumstances.

Written Contracts: While written contracts are not mandatory for all employees, it is highly recommended that employers provide a written contract, particularly for employees who are covered by the Employment Act. The contract should clearly outline the employee's role, salary, working hours, benefits, and other key terms.

Probationary Period: Probationary periods are common in Singapore, generally ranging from 3 to 6 months. During this period, either the employer or employee may terminate the contract with a shorter notice period.

2. Wages and Salaries

Minimum Wage: Singapore does not have a statutory minimum wage across the board. However, certain groups of workers, such as cleaners, security officers, and landscape workers, are covered under the Progressive Wage Model (PWM), which ensures a minimum wage linked to skill development and productivity.

Payment of Wages: Wages are typically paid monthly but can be paid more frequently by agreement between the employer and employee. Employers must pay wages in legal tender (Singapore Dollar) and on or before the 7th day of the following month.

Overtime: Employees who are classified as workmen or are earning less than a certain salary threshold (currently S$2,600 per month) are entitled to overtime pay. Overtime is paid at 1.5 times the employee’s hourly rate for hours worked beyond the normal workweek (usually 44 hours per week).

3. Working Hours

Standard Working Hours: The standard workweek in Singapore is 44 hours. This can be spread across 5 or 6 days, with a maximum of 9 hours per day (excluding breaks). Work hours can be extended by mutual agreement between the employer and employee, but such hours are subject to overtime compensation.

Rest Periods: Employees are entitled to a break of at least 45 minutes after every 6 hours of work. In addition, employees are entitled to a weekly rest day, typically on Sundays.

Overtime: Employees who work beyond their normal working hours are entitled to overtime pay, as mentioned earlier, at a rate of 1.5 times their hourly wage.

4. Leave Entitlements

Annual Leave: Employees who have completed 1 year of service with the same employer are entitled to 7 to 14 days of paid annual leave, depending on the length of service. The entitlement increases with years of service, with a maximum of 14 days after 8 years of service.

Sick Leave: Employees are entitled to paid sick leave if they are certified by a doctor. Employees who have been employed for at least 3 months are entitled to 14 days of paid outpatient sick leave per year, and 60 days of paid inpatient sick leave.

Maternity Leave: Female employees are entitled to 16 weeks of maternity leave, with 8 weeks of paid leave provided by the employer and the remainder covered by the Government Paid Maternity Leave Scheme.

Paternity Leave: Fathers are entitled to 2 weeks of paid paternity leave under the Government Paid Paternity Leave Scheme, provided certain conditions are met (e.g., the child is a Singaporean citizen).

Childcare Leave: Parents are entitled to 6 days of paid childcare leave per year if they have a child under the age of 7 years. This is for employees who are citizens of Singapore and have worked for at least 3 months with the employer.

Public Holidays: Employees are entitled to 11 paid public holidays each year. If an employee is required to work on a public holiday, they must be compensated with either a day off in lieu or 1.5 times their normal salary.

5. Social Security and Benefits

Central Provident Fund (CPF): The CPF is Singapore's mandatory social security savings scheme. Employers and employees contribute to the CPF to save for retirement, healthcare, and housing needs. The contribution rates vary based on the employee’s wages and age.

Contribution Rates: Both employers and employees make contributions to the CPF. For example, for employees under 55 years old, the total contribution rate is 37%, with the employer contributing 17% and the employee contributing 20%.

Maternity, Sick, and Retirement Benefits: CPF contributions also cover benefits such as maternity and sick leave, as well as retirement benefits. Employees can use their CPF balances for medical expenses, home purchases, and other approved uses.

6. Health and Safety

Workplace Safety and Health Act: Employers are required to ensure that their workplace is safe and complies with the Workplace Safety and Health Act. Employers must conduct risk assessments and provide appropriate training and protective equipment to employees.

Accidents and Work Injuries: Employees who are injured at work are entitled to compensation under the Work Injury Compensation Act (WICA). The compensation can cover medical expenses, lost wages, and long-term disability benefits.

7. Termination of Employment

Termination by Employer: Employers can terminate employees for reasons such as poor performance, misconduct, or redundancy. Employees are entitled to a notice period, which is typically 1 month for employees under contract or a payment in lieu of notice.

Termination by Employee: Employees who wish to resign must also provide notice, which is usually 1 month (or as per the employment contract).

Severance Pay: Employees who are dismissed for reasons such as redundancy are entitled to severance pay. The amount depends on the terms in the employment contract and the length of service.

Unfair Dismissal: Employees who believe they have been unfairly dismissed can seek redress through the Tripartite Alliance for Dispute Management (TADM) or the Employment Claims Tribunals (ECT).

8. Anti-Discrimination and Equal Treatment

Non-Discrimination: Singapore law prohibits discrimination based on race, gender, religion, age, disability, and other factors. Employers are required to provide equal opportunities to all employees and promote a workplace free of harassment.

Equal Pay: Singapore does not have specific equal pay legislation, but employers are encouraged to follow fair pay practices, ensuring employees performing the same work are paid fairly.

9. Trade Unions and Collective Bargaining

Trade Unions: Workers in Singapore have the right to form or join trade unions. The National Trades Union Congress (NTUC) is the main trade union federation in Singapore.

Collective Bargaining: Employees, through their unions, may engage in collective bargaining to negotiate better wages, benefits, and working conditions. However, industrial actions such as strikes are heavily regulated and must follow strict guidelines.

10. Labor Dispute Resolution

Tripartite Alliance for Dispute Management (TADM): TADM helps resolve employment disputes through mediation. Employees and employers are encouraged to use this service before escalating matters to the Employment Claims Tribunals (ECT).

Employment Claims Tribunals (ECT): The ECT is a forum where employees can seek compensation for unpaid salaries, wrongful deductions, and other employment-related claims. Claims must be filed within 1 year of the issue arising.

11. Foreign Workers

Work Passes: Foreign workers must hold a valid work pass to work in Singapore. There are different types of passes depending on the employee's qualifications and the job type, including Employment Passes, S Passes, and Work Permits.

Foreign Worker Rights: Foreign workers are generally entitled to the same working conditions as Singaporean workers, including wages, rest periods, and leave entitlements. However, certain restrictions may apply depending on the type of work pass.

Conclusion

Employment law in Singapore is designed to protect workers' rights while promoting a flexible and efficient labor market. Key protections include provisions for fair wages, working hours, leave, health and safety, and dispute resolution mechanisms. The Employment Act, along with other laws such as the CPF Act and Work Injury Compensation Act, ensures a comprehensive legal framework for employment in Singapore.

 

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