Before Signing an Employment Contract

The employment contract should include your place of work, the daily working hours and number of working and rest days per week. For instance, will you be working a five- or six-day work week? If you are required to work on shift, what are the typical shift work hours, and do you have sufficient break time and rest days?

Did you Know?

If you are covered under Part IV of the Employment Act, your hours of work are regulated and you are entitled to breaks, overtime pay and rest day. You are generally not required to work for more than six consecutive hours without a break. However, if the nature of work requires you to work continuously for up to eight hours, breaks must be provided for meals and should be at least 45 minutes; and you should have one rest day per week².

4. Salary, Bonus and Reimbursement

While you may have negotiated and agreed on the salary when an offer is made, you should still check that the agreed amount is accurately reflected in the contract. Other information to look out for include:

• What is the frequency of salary payment? Are there any payment conditions on any particular salary elements such as allowances?
• What is the overtime rate of pay and frequency of payment, if applicable?
• What is the commission structure like, if applicable?
• Are you entitled to any bonuses, annual wage supplements and other incentives?
• Are you entitled to any reimbursements of expenses incurred for work (g. travel expenses incurred during employment)?

Did You Know?

If you are covered under the Employment Act³, your employer must pay your salary at least once a month and within seven days after the end of the salary period. Some exceptions include overtime pay and resignation without notice⁴.

5. Leave and Other Benefits

Your employment contract should state the following:

• Number of days of annual leave you are entitled to;
• Policy on carrying forward your annual leave and how unused annual leave is treated upon resignation or termination;
• Public holidays (e.g. Are you given a day’s pay or a day off if you work on a public holiday or the public holiday falls on a non-working day?);
• Maternity, paternity and childcare leave entitlements, if applicable;
• Medical benefits, sick leave and hospitalisation entitlements.

Did You Know?

In accordance with the Employment Act, you are entitled to paid annual leave and sick leave if you have worked for your employer for at least 3 months⁵. The Act stipulates the minimum leave entitlements and those beyond what is stated in the Act will have to be mutually agreed between the employer and employee, and documented in the employment contract⁶.

6. Probation Period

Probation period is a common practice and usually lasts for three to six months or longer depending on the complexity of the role and industry. It gives both you and your employer the opportunity to assess suitability and job fit in the job role and company culture. Employees assessed well after the probation period will be confirmed and those who are not may have their probation period extended.

Do check:

• What is the duration of probation if any?
• How will you be assessed during the probation? Typically, companies will review your performance and issue a confirmation letter upon completion of the probation.

7. Termination

Either you or your employer can end an employment relationship by terminating the contract. In your contract, look out for:

• The requisite notice period for termination of contract for both you and your employer, before and after confirmation of employment.
• The option to terminate the contract by paying salary in lieu of notice.
• Restraint of trade clauses restricting your employment in a similar position in other companies or industry when you leave the company.
• Other penalty clauses (e.g. for early termination of contract).

If there are other penalty clauses, always clarify what these are and how they will be administered. Do not sign the contract if you are uncomfortable with the employer’s explanation.

Did You Know?

The length of notice period must be the same for the employer and employee. If there is unequal notice period or no prior agreement between your employer and yourself, the notice period in the Employment Act will apply, and it will be based on length of service⁷.

So before you sign the next contract, check the terms and conditions to ensure you fully understand them and they meet the minimum requirements of the Employment Act (if you are covered), clarify when in doubt, and capture all agreed terms in the contract to avoid potential disputes.

If there are any terms, they should not be included in the contract. For more information on employment contracts, visit tafep.sg or mom.gov.sg.

If you need assistance on employment disputes, you may approach the Tripartite Alliance for Dispute Management for advisory and mediation services⁸.

For employers who need advice on how to apply the Employment Act, Advisories or Guidelines, you may contact the Employer Advisory Service (paid services¹⁰.

The Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) helps employees are respected, valued and able to achieve their fullest potential, for the success of the organisation. Employers can approach TAFEP for tools, resource materials and assistance to implement fair and progressive practices at their workplaces. Employees or individuals who encounter workplace discrimination or harassment can seek assistance and advice from TAFEP. For more resources and events from TAFEP, visit tafep.sg.