The following labour laws apply to all employees:
- The Employment Act
This Act protects local and foreign employees except Managers or executives with monthly basic salary of more than $4,500, Seafarers, Domestic workers and Government employees.
- Work Injury Compensation Act
This Act protects all employees engaged under a “contract of service” or “contract of apprenticeship” with an employer, regardless of salary level.
- Employment (Part-Time Employees) Regulations
This Act protects local and foreign part-time employees who work less than 35 hours a week.
- Maternity Leave
Maternity leave benefits are set out under Government-Paid Maternity Leave.
- Paternity Leave
Paternity leave benefits are set out under Government-Paid Paternity Leave and in the Employment Act.
- Shared Parental Leave
Working fathers are also entitled to share 1 week of the 16 weeks of maternity leave if the mother qualifies for Government-Paid Maternity Leave.
The following labour law applies only to local employees:
- Retirement and Re-employment Act
This Act protects full-time and part-time employees who are Singapore Citizens or Permanent Residents.
The following labour law applies only to foreign employees:
- Employment of Foreign Manpower Act
This Act protects foreign employees holding work passes.
Labour Laws And Employment Contracts
- Singapore's labour laws impose certain terms and conditions for hiring employees.
- The Employment Act for instance states clearly the maximum hours of work and when the employer has to pay overtime.
- When drafting the employment contract, the terms must clearly follow the labour laws if your employee comes under these laws. Otherwise, they will be considered illegal.
- If your employee is not protected under any of the labour laws, the rights and obligations of all parties are stated in the contract.
- The Employment Act does not, for example, protect employees who are managers. This means that the required terms on maximum work hours do not apply. You must therefore state clearly in the contract what the employee's working hours are.
Other Responsibilities Of Employers
The following responsibilities apply to all employees:
- Skills Development Levy (SDL)
Employers must pay SDL for all employees working in Singapore.
- Employee Tax Forms
You need to prepare tax returns for all your employees.
The following responsibility applies only to local employees:
- Central Provident Fund (CPF) Contributions
You have to make CPF Contributions for all Singapore Citizens and Permanent Residents who earn more than S$50 a month.
The following responsibilities apply only to foreign employees:
- Foreign Worker Levy
You must pay the Foreign Worker Levy at the prevailing rate if your foreign employee holds a Work Permit or an S Pass.
- Tax Issues For Foreign Employees
You must seek clearance for foreign employees leaving Singapore.
You may deduct expenses relating to recruitment and relocation of foreign employees.