Hire in Singapore

The common practice for working hours in Singapore typically ranges from 40 to 44 hours per week, usually spread over five days. Prior to the commencement of the contract, both employers and employees agree upon the working hours, which constitute one of the key terms of employment.

Here are the guidelines regarding working hours:

– For employees working five days or fewer per week, contractual work hours can extend up to nine hours per day or 44 hours per week.
– For employees working more than five days per week, contractual work hours are typically up to eight hours per day or 44 hours per week.

Overtime work in Singapore is defined as any work performed beyond the normal hours of work, excluding breaks. Employees eligible for overtime payment include non-workmen earning up to S$2,600 and workmen earning up to S$4,500.

For non-workmen, the overtime rate is capped at a maximum salary level of S$2,600 or a maximum hourly rate of S$13.60. Employers must pay overtime at a rate of at least 1.5 times the hourly basic rate of pay.

Payment for overtime work must be disbursed within 14 days following the last day of the salary period. Additionally, overtime hours cannot exceed 72 hours per month. If employers require employees to work beyond 12 hours per day or 72 overtime hours per month, they must apply for an overtime exemption.

The Annual Wage Supplement (AWS), often known as the 13th-month payment, is a single annual payment made on top of an employee’s total annual wage. AWS is typically capped at one month’s salary and is commonly paid in December.

While AWS is not compulsory, it is a common practice among employers in Singapore. On the other hand, annual bonuses are typically paid after the company’s financial year closing, once the performance of the company can be accurately assessed.

If either party wishes to terminate the employment contract, they must provide written notice of termination, typically in the form of a termination letter or resignation letter. This written notice is mandatory and ensures clarity and formal documentation of the termination process.

Even if a termination letter is provided, the employee remains considered an employee of the company until the effective termination date specified in the notice.

Upon termination, the treatment of unused annual leave varies. If the employee’s contract is terminated, they may either encash their unused leave or take it as part of their notice period. If encashed, the unused leave should be calculated at the gross rate of pay based on the employee’s last drawn salary. However, if the termination is due to employee misconduct, any unused leave may be forfeited.

Employers with at least 10 employees must notify the Ministry of Manpower of retrenchments, regardless of the number of employees affected. This notification must be submitted within five working days after the affected employee has been notified of the retrenchment.

The notice period specified in an employment contract must be uniform for both the employer and the employee. This means that the duration of the notice period should align with the terms stipulated in the written contract or verbal agreement if no written contract exists.

Typically, the notice period is set at one month, although it may be longer for senior or higher-level positions. However, this can vary based on industry practices and specific contractual agreements.

Both the employer and the employee have the option to mutually agree to waive the notice period. This agreement should be documented in writing to ensure clarity and avoid any disputes.

Employees who have completed at least two years of service with the company are entitled to receive severance payment, commonly known as retrenchment benefits. For those who have served less than two years, the company may offer an ex-gratia payment as a gesture of goodwill.

The specific amount of severance payment is typically outlined in the employment contract or collective bargaining agreement (CBA) for unionized companies. If no such provision exists, negotiations between the employees (or their union) and the employer will determine the amount. Generally, retrenchment benefits range from two weeks to one month’s salary per year of service, with factors such as the company’s financial standing and industry standards taken into consideration.

In unionized companies governed by a CBA, the standard retrenchment benefit is usually set at one month’s salary for each year of service.

Payslips must be provided monthly and can be accessed through a website, in PDF format, or as a hard copy.

Employees are entitled to paid annual leave if they have been employed for more than three months. The minimum annual leave entitlement is seven days for the first year of service, and this increases by one day for each additional year of service, up to a maximum of 14 days.

For hospitalization leave, an employee is considered hospitalized if certified by a doctor to require hospitalization, without the necessity of being warded in a hospital.

1. 16 weeks of maternity leave  if the following conditions are met:

• The child holds Singapore citizenship.
  The mother has completed at least three months of service with her employer before the child’s birth.
• The mother has provided her employer with at least one week’s notice before commencing maternity leave.
• During the first eight weeks of maternity leave, the mother’s salary is paid by her employer, while the government covers the last eight weeks.

2. 12 weeks of maternity leave for female employees who do not qualify for the Child Development Co-Savings Act Scheme, provided they meet the necessary criteria. Payment during the last four weeks depends on the terms of the employment contract.

3. Upon mutual agreement with the employer, an employee can opt to take the last eight weeks (ninth to 16th week) of maternity leave flexibly over a 12-month period following the child’s birth. This flexible period can be up to 48 days, equivalent to eight weeks of working days.

During the leave period, the employer pays the usual monthly salary and can subsequently claim reimbursement from the government under the Government-Paid Maternity Leave (GPML) scheme, with reimbursement rates of 50% for the first two children and 100% thereafter.

Furthermore, from January 1, 2017, eligible working fathers, including self-employed individuals, are entitled to two weeks of paid paternity leave. Funding for this leave is provided by the Government, subject to the agreement of the mother. Eligibility criteria under the Child Development Co-Savings Act include:

– The child is a Singapore citizen born on or after January 1, 2017.
– The father is/was legally married to the child’s mother between conception and birth.
– The father has completed a continuous period of at least three months of service with his employer before the child’s birth.

Under the regulations of the Child Development Co-Savings Act, eligible working parents of Singaporean citizen children are granted six days of paid childcare leave annually, provided they meet the following requirements:

1. The child holds Singapore citizenship.
2. The youngest child is under 7 years old.
3. The parent has completed at least three months of continuous service with the employer.

Parents of non-citizen children can avail themselves of two days of childcare leave per year, as per the provisions of the Employment Act.

Extended childcare leave, also governed by the Child Development Co-Savings Act, grants eligible working parents of Singaporean citizen children two additional days of paid leave per year. To qualify for extended childcare leave, the following criteria must be met:

1. The child is a Singaporean citizen.
2. The youngest child falls within the age range of 7 to 12 years.
3. The parent has served the employer for at least three months continuously.

For parents with children spanning both age groups (i.e., under 7 years and between 7 and 12 years), the total paid childcare leave entitlement for each parent is capped at six days per year.

In Singapore, there are a total of eleven public holidays throughout the year. These holidays reflect the cultural diversity and multi-ethnic nature of the country, with each major local race and religion having two holidays dedicated to them. Additionally, there are secular holidays such as New Year’s Day, Labor Day, and National Day.