Understanding the Singapore Employment Act Basics

The Employment Act is the key piece of legislation governing employment practices in Singapore. It lays out essential rules and obligations for both employers and employees, ensuring fair treatment and consistency in the workplace. Whether you are a business owner establishing new employment policies or an employee seeking to understand your rights, it is important to know the Act’s scope and coverage. Understanding these fundamentals can help you stay compliant, create a healthier work environment, and prevent unnecessary disputes. The Ministry of Manpower (MOM) provides comprehensive information on these requirements, which can serve as a useful starting point to evaluate and strengthen your organisation’s employment practices.

The Employment Act covers most employees under a contract of service, with exceptions for specific categories such as seafarers or domestic workers governed by separate laws. It standardises obligations across different types of employment and ensures that every worker benefits from legally enforced terms of employment.

• Applies to both local and foreign employees.
• Ensures basic employment rights and benefits.
• Governs terms like salary, contract, rest days, and holidays.

Understanding working hours and rest days is central to compliance with the Employment Act. Employers must ensure fair scheduling and provide sufficient rest to maintain employee well-being and productivity.

• Normal working hours are generally up to 44 per week.
• Employees are entitled to one rest day each week.
• Overtime pay must be given for eligible employees working beyond stipulated limits.

Leave entitlements aim to promote work-life balance and safeguard employees’ welfare. Employers should offer leave benefits as set out in the Act to avoid disputes and ensure lawful employment practices.

• Annual leave increases with years of service.
• Paid sick and hospitalisation leave is provided for medical needs.
• Compulsory public holidays must be granted or compensated if employees work on those days.

Written employment contracts are fundamental for setting clear expectations between employers and employees. These contracts should cover roles, pay terms, working hours, and termination conditions.

• Contracts must comply with minimum standards under the Act.
• Notice periods and final salary payment timelines must be observed.
• Proper documentation helps prevent disputes and misunderstandings.

Complying with the Employment Act is not only about meeting legal requirements but also about nurturing a fair and transparent working environment. Employers who align their policies with the Act build trust and promote long-term sustainability. Employees who understand these rules can make informed decisions and safeguard their interests at work. For detailed information and updates, visit the Ministry of Manpower’s Employment Practices webpage to ensure your organisation remains compliant and up to date with Singapore’s labour standards.