Running a business in Singapore? Then you know that staying compliant with the Employment Act isn't just another box to tick – it's the foundation of healthy employer-employee relationships. Whether you're an experienced HR professional or a first-time business owner trying to navigate Singapore's employment laws, we've got you covered with this comprehensive guide.
Why Is the Employment Act So Important in Singapore?
Think of the Employment Act as the ultimate rulebook for workplace relationships in Singapore. Just like how a good referee ensures fair play in sports, the Employment Act ensures both employers and employees know their rights and responsibilities. It's not just about following rules – it's about creating a workplace where everyone knows what to expect and what's expected of them.
Did you know? The Employment Act has been the backbone of Singapore's employment framework since 1968! With regular updates to keep pace with our evolving workforce, it continues to set the gold standard for fair employment practices in Singapore.
Who Falls Under the Employment Act's Protection?
The Employment Act casts a wide protective net, but there are some exceptions. Let's break it down:
✅ Who's Covered:
- Almost all employees working under a contract of service
- Both local and foreign employees
- Full-time, part-time, and contract workers
❌ Who's Not Covered:
- Seafarers (they're protected under other maritime regulations)
- Domestic workers (covered by separate employment rules)
- Statutory board employees and civil servants (governed by specific government regulations)
- Managers and executives earning more than S$4,500 per month (for certain provisions)
Understanding Part IV of the Employment Act: Special Provisions
Part IV is like a safety net with extra padding for more vulnerable employees. But who exactly gets this extra protection?
🎯 Eligible Employees:
- Workmen earning up to S$4,500 per month (think construction workers, technicians)
- Non-workmen earning up to S$2,600 per month (like retail staff, admin assistants)
- All employees (excluding managers and executives) earning up to S$2,600 per month
These employees receive additional protection regarding working hours, rest days, and overtime pay – because everyone deserves fair treatment, regardless of their salary bracket!
Key Statutory Requirements and Common Practices
From working hours to retirement benefits, these twelve essential regulations form the foundation of fair employment practices in Singapore.
1. Minimum Age Requirements
Singapore takes youth employment seriously! Here's what you need to know:
- Minimum working age: 13 years
- Special restrictions for those under 16
- No hazardous work for anyone under 16
2. Minimum Wage Guidelines
While Singapore doesn't have a one-size-fits-all minimum wage, specific sectors have Progressive Wage Models (PWM):
- Cleaning sector
- Security sector
- Landscape sector
- Lift and escalator maintenance sector
- Retail sector (from September 2022)
- Food services sector (from March 2023)
- Occupational PWs for administrators and drivers (from March 2023)
- Waste management sector (from July 2023)
3. Working Hours Under the Employment Act
Time is money, but proper rest is priceless! Here's what the law says:
- Standard working hours: Up to 8 hours per day
- Maximum weekly hours: 44 hours
- Contractual working hours: Can be flexible but must comply with the Act
- Break times: Employees should have a break every 6 consecutive hours of work. But for special cases, employees should have a break for at least 45 minutes for every 8 hours of work
- Maximum overtime: 72 hours per month
Learn more : Working Hours in Singapore: A Comprehensive Guide
4. Rest Day Entitlements
Everyone needs a break! Here's how rest days work:
- One rest day per week (usually Sunday, but can be any day)
- For shift workers, the rest day can be a continuous period of 30 hours.
- Work on rest days under employer’s request requires extra compensation
- Up to half day's work: 1 day's salary
- More than half day: 2 days' salary
5. Public Holiday Benefits
Singapore celebrates 11 paid public holidays annually:
- Full paid day off for all employees
- Double pay or replacement leave for working on public holidays
- Special rules when public holidays fall on rest days
- Pro-rated entitlement for part-time employees
Learn more: Singapore Public Holidays 2025: Your Ultimate Guide to Planning & Payroll
6. Annual Leave Entitlements
The longer you stay, the more leave you get:
- Year 1: 7 days
- Year 2: 8 days
- Year 3: 9 days
- And so on, up to 14 days. (Pro tip: Many companies offer more than the minimum to stay competitive!)
Learn more: Complete Guide to Singapore's Annual Leave Rules
7. Sick Leave Under Singapore Employment Act
Because health comes first:
- Up to 14 days outpatient leave
- Up to 60 days hospitalization leave
- Must be certified by company-approved doctors
- Full pay during sick leave
- Pro-rated for new employees
Learn more: Guide to Sick Leave Entitlement and Eligibility in Singapore
8. Maternity & Parental Benefits
Singapore supports working parents with:
- 16 weeks paid maternity leave for citizens
- 4 weeks paid paternity leave
- Shared parental leave options
- Adoption leave provisions
- Childcare leave entitlements
- Unpaid infant care leave
Learn more: Singapore Maternity Leave 101: What Employers Need to Know
Learn more: Paternity Leave in Singapore: A Comprehensive Guide
9. Overtime Regulations
Extra work deserves extra pay:
- Minimum 1.5 times hourly basic rate
- Maximum 72 overtime hours per month
- Special calculations for rest days and holidays
- Must be properly documented and compensated
Learn more: A Comprehensive Guide to Calculate Overtime Pay in Singapore
10. Retirement and Re-employment
Age is just a number:
- Minimum retirement age: 63 years old
- Re-employment up to 68 years old
- Flexible work arrangements for seniors
- Annual review of re-employment terms
11. Retrenchment Guidelines
When downsizing becomes necessary:
- Fair selection criteria must be used
- Notice period requirements apply
- Retrenchment benefits (if qualifying)
- MOM notifications required
- Proper communication with affected employees
12. Termination Procedures
Parting ways professionally: Notice periods based on service length:
- Less than 26 weeks: 1 day
- 26 weeks to 2 years: 1 week
- 2-5 years: 2 weeks
- More than 5 years: 4 weeks Payment in lieu of notice is allowed
Learn more: Navigating Employment Termination in Singapore: A Guide for HR and Employers
Penalties for Non-compliance
Breaking the Employment Act isn't just bad practice – it's expensive:
- Fines up to S$5,000 for first offence.
- Fines up to S$10,000 for any subsequent offence.
- Imprisonment for serious violations
- Higher penalties for repeated offenders
- Damage to company reputation
- Potential legal proceedings
Smart Strategies for Employment Act Compliance
Stay ahead of employment regulations with these practical tips covering documentation, policy updates, team training, and technology solutions.
1. Stay Updated
Knowledge is power:
- Subscribe to MOM newsletters
- Attend employment law seminars
- Join HR professional networks
- Follow reputable HR blogs and updates
2. Document Everything
Paper trails protect everyone:
- Maintain detailed employment records
- Keep attendance and leave records
- Document workplace policies
- Store records for at least 2 years
3. Regular Policy Reviews
Prevention is better than cure:
- Annual employment contract audits
- Update HR policies regularly
- Conduct compliance checks
- Review and update employee handbooks
4. Invest in HR Technology
Modern problems need modern solutions:
- Automate leave management
- Track working hours accurately
- Generate compliance reports
- Store employment records securely
Making Compliance Easier with Swingvy’s HR Software
Why struggle with manual processes when you can automate? With Swingvy's all-in-one HR platform, you can:
- Automate leave management
- Track working hours effortlessly
- Generate statutory reports
- Store employee documents securely
- Stay updated with employment law changes
- Process payroll accurately and on time
Don't let Employment Act compliance be your headache. Try Swingvy today and experience how easy HR management can be!
.png)
--
Sources:
.png)
