Comply with Singapore employment laws and issue compliant employment contracts for employees working in Singapore using our PEO services.
When expanding into a new country, it is vital that you comply with said country's employment laws and build a happy, committed workforce. Drawing up a suitable employment contract is a sure-fire way to achieve both of these goals.
An employment contract, otherwise known as a contract of service, is legally required in Singapore and must be provided within 14 days after the start of employment. While verbal or implied contracts are accepted it is widely recommended that a written contract is established to avoid any disagreements or misunderstandings. As outlined on the Singapore government website, a contract of service must contain key employment terms (KETs) including:
- Full names of the employer and employee
- Start date of employment
- Duration of employment (if on a fixed-term contract)
- Job title, main duties and responsibilities.
- Working arrangements, e.g., working hours, days and rest days
- Basic salary
- Overtime payment period (if different from item 7 salary period).
- Overtime rate of pay
- Bonuses and incentives
- Leave including annual leave, sick leave, hospitalisation leave, maternity leave, childcare leave
- Probation and notice period
All KETs outlined in a contract of service must follow the Employment Act, an act that outlines Singapore's employment laws. While the Singapore government provide an online tool to check if work arrangements comply with the Employment Act and to calculate the daily and hourly rate of pay, compiling a contract of service can still be highly complex and requires a huge amount of resource. Failure to dedicated sufficient resource to employment contracts can lead to non-compliance which in turn can result in unhappy employees and even legal disputes. Therefore, it is key to provide the right employment terms in an employment contract. Read on to find out all you need to know about creating a compliant written statement of employment particulars and how our PEO services can help you achieve this.
Types of Singapore employment contracts
A contract of service is the main form of employment contract in Singapore. As with many other countries, this can be either fixed term or indefinite.
There can however be some confusion between a contract of service and contract for service. Put simply, a contract of service is an agreement between an employer and employee. A contract for service meanwhile is where an independent contractor is engaged to complete a set amount of work for a company.
While the differences between the two seem pretty clear cut it is worth considering the multiple benefits and drawbacks of each contract type for both employers and employees or contractors as well as the legalities of both.
Can I change a contract of service?
A contract of service can be amended, however any changes can only be made with the consent of both the employee and employer. Failure to gain consent can lead to disputes and unhappy employees.
Do I need to translate a contract of service?
When recruiting in Singapore it is important that employment contracts are translated. Some terms, especially legal discourse, can be lost in translation leading to misunderstandings, risks and even legal proceedings further down the line.
Plus, in Singapore, legal documents that need to be used in court must be served in English therefore it is prudent to get these translated ahead of time.
How to I write a contract of service?
The Singapore government provides a clear outline of what must be included in contracts of service. However, writing a compliant contract is not as simple as just including these points. Every term included in a Singapore contract of service must comply with the Employment Act. Failure to do so can result in fines and legal action against your business.
Meanwhile, with contracts of service required to be presented to employees within 14 days of their employment starting, time is really of the essence when producing these contracts. However, the deep understanding of employment laws cannot be rushed, causing a problem for employers. This is where our PEO Services come in.
Why use a PEO partner to produce a contract of service?
Producing and issuing compliant Singapore contracts of service is not just a complex process but also one that is laden with risk. Failure to comply with the Employment Act or to state employment terms and benefits correctly can cause disagreements. In turn, this runs a huge risk of fines, employee lawsuits and can jeopardise your new expansion into Singapore. Not to mention that employment contracts are only one task of many to overcome when expanding your business. Businesses also need to consider payroll, tax, national insurance contributions, recruitment and work visas to name but a few.
A PEO partner can take all of this from your shoulders, allowing you to focus on your company's expansion knowing that employee contracts are taken care of compliantly. At Leap29 our PEO team are up to date with the Employment Act and contract requirements meaning we can issue contracts compliantly, promptly and with key employment terms clearly outlined.
If you want to find out more about how our PEO Services in Singapore can support your global expansion, call our experts today on +65 3129 8575 or email firstname.lastname@example.org.
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