In Singapore, after you set up your business, you need to hire employees to help you operate the business. In other words, the phase of getting workers is a crucial one because it entails detailed decision-making to ensure you are on the right track. Therefore, the process has laid out legal rules and regulations which the employer and employees must put into consideration.
Employees in Singapore have excellent knowledge of their rights under the Singapore Employment Act. In addition, the Singapore Employment Act is regulated by the Ministry of Manpower (MOM). For instance, they understand what is rightfully theirs and what action they can take in some different instances. For this matter, as the employer, you need to learn about all the legal requirements to keep your business operations safe.
Read and understand the correct procedure to take while hiring employees in Singapore.
Consider the followings on Hire Employees:
Now that you have your business ad you are searching for employees think of the following questions first.
- What are the rules of hiring contractual, full-time, or part-time workers?
- For instance, what legal matters related to labor do I need to consider for my business and my employees?
- Does Singapore have any guidelines for the hiring process I should know?
- For instance, what if I need to hire both foreign and local employees? What formalities should I follow? Do they have some restrictions on foreign employees?
- The costs of hiring employees. In other words, are there any fund contributions or levies I should pay?
- What other standard practices do investors in Singapore follow in case there is no statutory requirement?
If you have no answers to the above questions and have other pressing questions, this guide will give you all the details you need to know about hiring Singapore employees. You must follow detailed hiring guides and labor legislation when recruiting local and foreign employees in Singapore. This article is for the newly set-up companies in Singapore that are yet to hire workers for the first time.
Note: Where necessary, seek professional advice from the relevant authorities. This guide gives the general information which companies follow during the recruitment process.
The Employment Act Overview
The employment act document plays a significant role in the hiring process. It explains all the terms and conditions that both the employer and the employee must adhere to when hiring. It has all the responsibilities, rights, and duties of employees and employers.
The first step when searching for Singapore workers is to know whether the employment act protects your employee.
When the employee is covered with the employment act, similarly, you must consider all the terms and conditions in the document. Setting your terms won’t be of any significance to the employee.
However, when the employee is not covered in the Employment Act, the employer and the employee can negotiate the terms and conditions and agree to an employment contract. The contract protects both the employer and the employee.
Hire Employees covered by the Employment Act
There are some employees who the Employment Act doesn’t cover. They include the following.
The executives and those managerial positions. A person in such posts can hire, fire, promote, transfer, discipline, and reward hire employees. They have direct powers and influence from the authorities. They run and manage essential activities related to the business.
The employment act doesn’t cover other top professionals with adequate knowledge and education skills who carry out managerial duties. Such professions include doctors, lawyers, dentists, and accountants.
The other people who don’t use the employment act include some government staff, domestic workers, and seamen.
Note: The Employment Act applies to hire employees in various categories in terms of their monthly earnings. The group includes those earning less than SGD 2,000 monthly and those making more than SGD 2,000 monthly.
In the case of workers getting less than SGD 2,000 monthly, they have more protection in terms of
- Retirement benefits
- Off days
- Working hours and overtime
- Sick Leave
- Public Holidays
- Annual Leave
- Annual wage supplement
- Retrenchment benefits.
Features of Employment Act
| Features | Executives / managers | Employees getting over 2,000 monthly | Employees getting less than 2,000 monthly |
| Max working hours weekly | According to the contract
Normal activities:40 to 50 hours |
According to the contract
Regular activities: 40 to 50 hours |
44 hours |
| Max working days weekly |
Normal activities: 5 days |
2. According to the contract
Normal activities: 5 days |
Six days |
| Extra working time | According to the contract
Usual activities: Not applicable |
According to the contract | 72 hours max monthly
Paid at 1.5 of the basic rate per hour |
Features of Employment Act – CPF Contribution, Bonus & Leave
| (CPFC)- central provident fund contribution for citizens from Singapore and PRs |
|
Similarly, compulsory | Similarly, compulsory |
| Yearly Bonus | According to the contract
Regular activities: equivalent to 1-4 months of salary |
According to the contract
Expected activities: equivalent to 1-4 months of salary |
Similarly, As per contract |
| Annual Leave; paid | For instance, according to the contract
Typical activities: 15 days |
For instance, according to the contract
Typical activities: 15 days |
In other words, 1styear – 7 days
2nd year – 8 days 3rd year – 9 days (annual increase up to a max. 14 days) |
| Sick Leave; paid | For instance, according to the contract
Expected activities: 14 days per annum |
For instance, according to the contract
Regular activities: 14 days yearly |
Similarly, 5-14 outpatient days (depending upon the period of employment served)
Hospitalization: 15-60 days (depending upon the period of employment served) |
| Maternity Leave; paid if entitled | 16 weeks
1st eight employers payable for first two confinements |
Similarly, 16 weeks
1st eight employers payable for first two confinements |
Similarly, 16 weeks
1st eight weeks employer payable for the initial two confinements |
| Annual Childcare (up to 7 years) Leave; paid if eligible | Six days
First 3 days employer payable |
Similarly, six days
First 3 days employer payable |
Similarly, six days
First 3 days employer payable |
| Infant care (up to 2 years) Leave; unpaid if eligible | Six days | Similarly, six days | Similarly, six days |
Features of Employment Act – Public Holiday, Probation & Termination Period
| Public Holidays; paid | 11 days | Similarly, 11 days | Similarly, 11 days |
| Probation time | For instance, according to the contract
Normal activities: 6 months |
Similarly, according to the contract
Normal activities: 6 months |
For instance, as per contract
Common practice: 3-6 months |
| Notice for Termination period | For instance, according to the contract
Normal activities: 1-3 months |
Similarly, according to contract
Common practice: 1-3 months |
For instance, as per contract
Common practice: 1 month |
| Retrenchment | For instance, According to the contract | Similarly, according to the contract | In other words, eligible to:
– receive a salary on the last working day – receive retrenchments benefits – serve the notice period |
| Insurance for medical | For instance, according to the contract | Similarly, according to the contract | For instance, according to the contract |
Conclusion on Hire Employees
If you have a company set up in Singapore, you need to get familiar with all the requirements. Take note of the above information and stay within the legal requirements for your company’s safety and you hire employees.
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