A Quick Guide to Singapore’s Employment Law

Last updated on October 25, 2024

In Singapore, there are various sources of employment law which govern the rights and obligations of employers and employees. Our employment law framework consists of both binding laws (e.g. the Employment Act, Workplace Safety and Health Act) and non-binding guidelines (e.g. Tripartite Guidelines on Fair Employment Practices).

As a whole, these laws and guidelines cover different areas of Singapore’s employment law framework ranging from hiring practices, payment of salaries, dispute resolution to work injury compensation. For instance, the Employment Act, Singapore’s main employment legislation, covers aspects such as leave entitlements, CPF contributions and salary payments.

The Ministry of Manpower (MOM) is the main enforcer of the Employment Act. Apart from MOM, there are other agencies which have purview over Singapore’s employment laws, such as the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), which was established to advance fair, responsible and progressive employment practices. There is also the Workplace Safety and Health Council, a statutory body under MOM which aims to improve safety and health standards in the workplace.

This article provides an overview of Singapore’s employment law framework for employers and employees. It discusses:

Does the Employment Act Apply to All Singapore Employees?

The Employment Act applies to all employees, including local and foreign employees, who have entered into a “contract of service” with an employer. Foreign companies based in Singapore are also required to comply with our local laws regarding employment.

The types of employees covered under the Employment Act include:

Workmen: This refers to someone whose work consists mainly of manual labour or whose job is identified in the First Schedule of the Employment Act (e.g. construction workers, cleaners, machine operators and bus/train drivers).
Persons in managerial or executive positions (PMEs): These are employees with executive and supervisory functions, and they also include professionals such as lawyers, accountants, doctors and dentists.

However, there are certain exceptions. The Employment Act does not cover the following types of employees:

Seafarers
Domestic workers
Public officers (i.e. civil servants and employees of statutory boards)

For such employees, their employment contract determines the terms and conditions of their employment.

It should also be noted that Part IV of the Employment Act, which relates to specific conditions of service such as rest days, working hours and overtime pay, only applies to the following employees:

Workmen earning a monthly basic salary of $4,500 or below.
Other employees (who are not workmen) but are covered by the Employment Act and earn a monthly basic salary of $2,600 or below.

Part IV does not apply to persons in managerial or executive positions.

What Do the Employment Laws and Various Employment-Related Legislation Cover?

As mentioned above, there are various laws governing employment in Singapore, with the main one being the Employment Act.

What does the Employment Act cover?

The Employment Act stipulates the basic terms and working conditions for employees (including full-time, part-time, contract and temporary employees). Broadly, the Act covers contracts of service, payment of salaries, conditions of service such as working hours and rest days, and annual and sick leave.

Employees who do not fall under the Employment Act (as explained above) may be protected by other forms of legislation. For example, domestic workers are protected by the Employment of Foreign Manpower Act while seafarers are protected by the Merchant Shipping (Maritime Labour Convention) (Seafarer Recruitment and Placement Services) Regulations.

If employers do not adhere to the Employment Act, they may face legal penalties such as fines and/or imprisonment. Examples of breaches of the Employment Act include failure to pay salaries to workers and making employees work excessive hours. The precise penalty imposed on the employer depends on the facts and circumstances of the case.

What do the other types of legislation cover?

Apart from the Employment Act, there are also various other employment-related legislation in Singapore spanning specific aspects of employment law:

Work Injury Compensation Act: This allows employees who have sustained injuries or developed diseases in the course of their work to seek compensation from their employers. Additionally, the Act also covers compensation for accidental deaths that occur during the course of work.
Child Development Co-Savings Act: This sets out the maternity and paternity benefits for employees such as paid maternity leave, childcare leave and adoption leave.
Retirement and Re-Employment Act: This specifies the minimum retirement age and also covers the re-employment of eligible employees past the retirement age.
Central Provident Fund Act: This mandates that companies contribute to their employees’ CPF accounts for retirement purposes.

What Do the Tripartite Guidelines on Various Employment Matters Cover?

Apart from the official laws and legislation described above, there are also non-binding guidelines that cover a wide scope of employment-related matters such as fair employment practices, flexible work arrangements and wrongful dismissal. Here is a brief overview of some of the guidelines:

Tripartite Guidelines on Fair Employment Practices: These guidelines set out fair and responsible employment practices that should be adopted by employers in order to prevent workplace discrimination and cultivate a more progressive working environment for all.
Tripartite Guidelines on Flexible Work Arrangement Requests: These are guidelines on how employees should make formal requests for flexible work arrangements, and how employers should respond to such requests.
Tripartite Guidelines on Wrongful Dismissal: These guidelines provide practical examples of what does and does not constitute a wrongful dismissal.
Tripartite Guidelines on Re-employment of Older Employees: These guidelines set out best practices for employers re-hiring employees beyond the retirement age, such as preparing employees for re-employment, preparing a re-employment contract and recognising the contributions of re-employed employees.
Tripartite Guidelines on Mandatory Retrenchment Notifications: These guidelines set out the procedures that employers have to comply with when conducting retrenchment exercises. Do refer to our article to learn more about employee rights in relation to retrenchment in Singapore.

Additionally, there are also guidelines that complement the legislation. For example, the Workplace Safety and Health Act is accompanied by the Code of Practice for Workplace Safety and Health, which supplements existing regulations on health and safety in the workplace and provides guidance to employers on ensuring compliance with the Workplace Safety and Health Act.

Are the Tripartite guidelines legally binding?

The Tripartite guidelines are not legally binding, unlike the laws and legislation covered in the previous section.

However, this does not mean that there are no consequences if employers fail to comply with the guidelines. On the contrary, MOM has stated that employers are expected to adhere to the guidelines and that non-compliance may result in MOM taking action against employers.

For example, if Company A is in breach of the Tripartite Guidelines on Fair Employment Practices (e.g. by putting out job advertisements indicating a preference for a specific race or hiring based on one’s marital status and family commitments), MOM may place that company on the Fair Consideration Framework Watchlist, which means that Company A’s work pass applications will be scrutinised more carefully for discriminatory hiring practices. Company A may also have to undergo counselling by TAFEP. Recalcitrant employers may even have their work pass privileges suspended.

What Avenues of Recourse Do Employees have Against Employers?

If an employee has a grievance with their employer over the Employment Act, they may turn to the Tripartite Alliance for Dispute Management (TADM), which assists employees with employment disputes such as salary and dismissal-related issues. The TADM provides advisory and mediation services. If mediation fails, employees may file a claim at the Employment Claims Tribunals (ECT).

If employees are facing workplace discrimination, harassment or other unfair practices, they may seek recourse from the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP). Complaints may also be made to MOM, which will then investigate claims of employment infringement. Examples of employment infringement include non-payment of salaries, workplace harassment and wrongful termination.

For a more detailed discussion on the avenues of legal recourse for employees, do refer to our article on common employment disputes and how you can deal with them.

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To conclude, both employers and employees are subject to laws and guidelines that make up Singapore’s comprehensive employment law framework. As shown above, there are a variety of rules to navigate from both the legislation as well as the accompanying guidelines.

An employment lawyer will be able to help employers better understand their legal obligations and ensure that their businesses are run in compliance with the existing regulatory framework to prevent running afoul of the law.

As for employees, an employment lawyer can give you information on how best to protect your interests in the workplace and advise you on the most suitable course of action to take if you have a specific claim that you wish to raise against your employer.

If you are looking for an employment lawyer to consult, here is our guide on how to choose a good employment lawyer in Singapore. Alternatively, you may kickstart your search using our Find a Lawyer service.