Must You Pay Liquidated Damages to Terminate Your Contract? Once you have found a suitable candidate for the job, you will then negotiate the Key Employment Terms (KETs) and send them an offer letter. 03. Employment of Part-Time Employees Regulations. Employee benefits Employee benefits can consist of provision of meals, healthcare, staff discounts etc. It does not make any distinction between a temporary employee, contract employee, daily-rated employee or employee on tenured employment. Caroline Yap is the editor and intern at iCHEF Singapore. iCHEF If your contract does not include any of these items, you should seek further discussions with your employer. This is to ensure the legal preciseness of the contract, as well as for it to be as comprehensive as possible. We know it's a hassle to switch browsers but we want your experience with CNA to be fast, secure and the best it can possibly be. Employment Contract in Singapore | Download Legal Template (.docx) Employers cannot make changes without the employees consent. How to calculate the persons income and the benefits received? Contact us, READ: TADM recovers S$29m in owed wages; resolves 85% of salary claims within 2 months, READ:Commentary: Tip of the iceberg, when disguised PMEs dont get overtime pay and fair treatment, READ:NTUC eyes new taskforce to protect workers at pre-retrenchment phase, sets 1.5 million membership goal, READ:Enhancements made to Employment Act will see more workers protected. (regardless of their salary levels), as well as all employees. Morality Clauses in Contracts: What is Considered a Breach? Keep in mind that this document is a starting point and not a finished product. Remember to provide your monthly CPF for your employees, follow the rules and regulations to avoid any penalty from the government! Administrative penalties should be imposed on them, added Mr Zainal. For instance, you cannot include duties that are not allowed under your helpers work permit conditions, such as taking care of other households. The following information is included in our Employment Offer Letter: Employee and employer names, length of work terms, employee financial remuneration, yearly leave, and other perks relevant to your firm The letter should include the following fundamental job information: job title, job responsibilities, line responsibility, start date, beginn. Templates and forms for employment agencies For employment agencies (EAs) to download latest templates and forms to comply with the Employment Agencies Act and Licence Conditions. This requirement applies for both local and foreign employees. Non-workmen earning up to $2,600 will be covered under Part IV of the Employment Act. An employment contract refers to an agreement in which one party agrees to hire the other party as an employee; the other party agrees to become an employee and serve the employer. Every month, you must contribute two portions of money to your employees CPF accounts: As an employer, you are permitted to deduct the employees share of the mandatory CPF contributions from their wages if your employees are earning more than $500 per month. For employees covered under the Employment Act, the employment contract should not contain any terms that are less favourable to an employee than any of the conditions of service prescribed by the Act Employment Act. Company Registration Singapore Why Singapore? Can an employer change the terms and conditions of employment? It includes all the essential elements of a typical contract. Code of Practice for Workplace Safety & Health: What Employers Should Know, Retrenched in Singapore? Refer to Annual Leave Eligibility and Entitlement for more information. That said, a well-drafted employment agreement will havetaken such employment law principles into account. Why it pays to understand your employment contract fully and terms to look out for. An eDocument can be considered legally binding provided that certain requirements are satisfied. Employers must contribute to their employees Central Provident Fund and provide related statutory benefits, such as annual leave and sick leave. Who can decide to recruit and dismiss employees? So, how should an employment contract be formulated? Contracts and safety agreement for migrant domestic worker Use of this site constitutes acceptance of our Terms of Service and Privacy Policy. Sign the contract with your eyes open," said SHRIs Ms Low. Every Parents Guide to Childcare Leave in Singapore. For a guide toemploymentagreements in Singapore,click here. Please tick where . The offer can be verbal or in writing, although you are recommended to make a written offer to minimise potential disputes. those not doing manual work and/or earning above the salary threshold of $2,600 or less a month), you have the flexibility to decide whether to purchase insurance for them. The following key changes to the Employment Act took effect from 1 April 2019: All employees are now covered under the Employment Act. The conditions in the employment contract cannot be lower than what is specified in the Employment Act. For the former, these tend to be illegal salary deductions and clauses that exclude them from overtime pay, said Mr Ian Lim, partner and head ofemployment at TSMPLaw. Termination Employers must include the duration of notice that the employee needs to provide in the event of terminating their employment. FOZL will now take you through the formulation of the employment contract. If youre an employer or employee who needs legal advice with regards to drafting a contract, breach of contract, or any other employment contract-related matters, please feel free to contact our employment lawyers for a consultation. (Use the discount code shown when you enter your email address below). In the outsourced service industry, such as cleaning and security, it is quite a standard practice for service buyers to reflect the liquidated damages payable for non-performance issues in the contract. https://www.tal.sg/tafep/employment-practices, https://www.tal.sg/tafep/getting-started/fair/tripartite-guidelines, Guidebook on Changes to the Employment Act, Tripartite Standards Clinic - Grievance Handling, Tripartite Standards Clinic - Recruitment Practices, Essentials in Fair and Responsible Termination of Employment Contracts. How to Issue Payslips to Your Employees in Singapore, An Employers Guide to Reimbursement of Expenses and Claims, Mental Health Policies for Singapore Workplaces (Tripartite Advisory), Work-Life Balance Laws and Policies in Singapore: A Guide, Progressive Wage Model: Minimum Wage Laws in Singapore, CPF-Payable Contributions in Singapore: A Guide for Employers, A Guide to Company Leave Entitlements in Singapore. They are hired under a contract of service for an unspecified period of time, which will run until terminated by either the employer or employee. Ms Amarjit Kaur, partner at Withers KhattarWong, echoed that: The Employment Act provides basic legislative protection to employees and goes into the details for areas like overtime pay, but not everything is prescribed., Referring to the restraint of trade clauses as some of the most onerous clauses that can be found in job contracts here, she added: A lot of it is left to the freedom of contract between the employer and employee.. Copyright 2015-2023 Farallon Law Corporation. The following excerpt is taken from our employment agreement template (which you can purchase at the link below): 6.1. Are They Enforceable in Singapore? There are no contract requirements from the Ministry of Manpower (MOM) in Singapore since the maid's work permit covers the main rights and obligations of both parties. KETs verification tool www.ichefpos.com/zh-tw, August 6, 2020 Who provides workplaces and materials? To hire a Singaporean or Singapore PR employee, you need to apply for a CPF Submission Number (CSN) to make CPF contributions as an employer. If you are an employee , your personal data will be collected and used by us for the following As an employer, you can add provisions in your employment contract stating a specific sum of money to be paid as compensation by the breaching party. with MOM's guidelines, with a reasonable amount of privacy. Many employers include non-compete clauses in employment contracts in a bid to prevent former employees from opening competing business or working for competitors. #22-07 SBF Center Some factors to consider when determining an employment contract include: Who can decide to recruit and dismiss employees? However, unforeseen circumstances (such as the employer no longer meeting the Ministry of Manpower's eligibility requirements) can lead to either party having to cancel the work agreement early. Key employment terms Find out what items must be included in key employment terms. Non-workmen earning up to $2,600 will be covered under Part IV of the Employment Act. Singapore law dictates that if one party does not perform to his or her obligations under a contract, the other party may file a civil suit against the other party for damages for breach of contract. Scope of work, that is, the responsibilities that must be performed Furthermore, employers must note that if the position in question falls under the Employment Act, and the employment is for 14 days or more, the Employment Act mandates that employers must disseminate a written list stipulating key employment terms. Mr Zainal said there is an urgent need for tripartite partners to provide greater clarity and guidance on fair and proper contracting practices, given how workers who are not properly advised of their legal rights are more likely to succumb to the unreasonable demands of their employers. The Employment Act covers all persons including foreigners who work in Singapore with the exception of seamen, domestic workers and Government and statutory board employees. CPF Contribution Drafting an Employment Contract is to safeguard the rights of employees and to ensure fair treatment. They are hired under a contract of service to work less than 35 hours a week and also enjoy protection by the EA through the Employment of Part-Time Employees Regulations. PH pay, COMPASS, Primary Care Plan, myMOM Portal, paying salary, annual leave. Once your offer has been accepted by the job applicant, you will need to sign an employment agreement, also known as a contract of service, which sets out the terms governing the relationship between an employer and an employee. When you hire a first-time or transfer FDW, the safety agreement which relates largely to rules about window cleaning must be signed by the employer and maid during the hiring process, regardless of the maids nationality. We pride ourselves in providing clients with legal and practical solutions for all their matters. If you think it is blatantly unfair, then one can always go to TAFEP and TAFEP will take up the case with the employer.. Free Employment Contract - Create, Download, and Print - LawDepot Nothing on this website constitutes legal advice. 2014-2023 First World Problems Pte Ltd. All rights reserved. These lawyers are selected based on their number of positive reviews and years of experience in this subject you are enquiring about. Death of an Employee in Singapore: What Should Employers Do? An employment contract is an agreement between the two parties (the Employer and the Employee) which govern their relationship and is enforceable by law. Whether the contract will be renewed, or if there are conditions for renewal, For shift work, whether the roster allows sufficient rest days, Number of working days and rest days a week, Policy on carrying forward your annual leave, Policy on encashing unconsumed leave upon resignation or termination, Public holidays (e.g. State the salary rate, and the date for the first paycheck5.2. Employees working less than 35 hours a week are covered under regulations for part-time employees. Drafting Employment Contracts - 3E Accounting Firm Singapore is available on the Ministry of Manpower (MOM) website. Difference between Singapore employment contract and service contract. Here are 5 trusted lawyers you can contact directly for a quote. (a) assessing and evaluating your suitability for employment in any current or prospective position within the organisation; and (b) verifying your identity and the accuracy of your personal details and other information provided. A service contract refers to an agreement that a party accepts a commission and acts as an independent contractor. These experts added that unfair employment contracts affect not just vulnerable workers, such as those earning lower wages, but the professionals, managers, executives and technicians (PMETs) as well. Please check out the IRAS website for the relevant tax forms. Templates and forms for employment agencies - Ministry of Manpower Employment Contract - Incorporate Singapore Company, Book - FOZL , you should assess information only directly related to the qualifications, skills, knowledge, and experience required for the job. The standard duration of foreign domestic worker employment contracts is 2 years in Singapore. You can post advertisements on several online platforms such as MyCareersFuture, LinkedIn, or Indeed. You can also use MOMs KETs verification tool to check if work arrangements, salary and other components meet the EA requirements. Contract of service - Ministry of Manpower You can also use MOMs KETs verification tool to check if work arrangements, salary and other components meet the EA requirements. Remuneration package Under this package, it will include salary, bonus, leave, overtime, public holiday pay etc. gtag('js', new Date()); Duration of employment (if the employee is on a fixed-term contract). Compensation clauses must be well drafted as in recent years courts have held such compensation clauses to be unenforceable as they were disproportionate to the amount of loss actually suffered by the employer. Singapore's Ministry of Manpower has stringent laws regarding hours of work and conditions for working overtime. What are Non-Solicitation Clauses? Plus, contracts can come in handy when applying for work permits and when carrying out other administrative or legal procedures. We are recognized regionally by the world-class quality of legal services that we provide. HelperChoice partners with ethical employment agencies so employers will not be charged for an unreasonable amount. He helped me fight my case even when I wasn't optimistic about it. by Marketing iCHEF. Sign it in a few clicks Draw your signature, type it, upload its image, or use your mobile device as a signature pad. the number of people the company can employ is restricted). 17. However, employers should note that the contract is inferior to the conditions attached to the work permit. Employment Bond: What is It & Can It be Enforced in Singapore? However, some low-wage workers may not be aware of their rights or are afraid to report their bosses for fear of losing their jobs, thus allowing errant firms to get away with these unreasonable practices, said Mr Zainal. The employer must also agree to treat the household service worker in a just and humane manner and to not hold or withhold the Filipino workers passport without consent. Microsoft Word - Singapore -- Standard Employment Contract .doc Author: leeh Created Date: 8/24/2009 6:02:23 PM . Can Your Boss Ask You to Work on a Public Holiday in Singapore? You are also required to purchase work injury compensation insurance for all employees doing manual work (regardless of their salary levels), as well as all employees earning $2,600 or less a month. In the event such terms are present in an employment agreement, they shall be illegal, null and void. (File photo: Marcus Mark Ramos). Phew, it was a long yet fulfilling guide one isn't it? The 3 types of employment pass that are eligible and F&B owners can look out for are: *Source: https://www.mom.gov.sg/passes-and-permits. Know Your Employee Rights, Sick Leave Entitlements for Employees in Singapore. What is the Minimum Legal Age for Working in Singapore? Some also contain catch-all phrases like all the above terms and conditions are subject to changes. You can usesample contracts like the one created by the Association of Employment Agencies of Singapore (AEAS) and CaseTrust. If you are unable to issue both together, then you must give the payslip within 3 working days of issuing the salary. The terms of the agreement may also be express or implied. Additionally, if you require assistance with human resources (HR) and payroll processing issues, you may choose to consult a corporate services firm to ensure that your business runs smoothly. To continue to transact with MOM securely, please follow these steps to enable the Transport Layer Security (TLS) of your web browser, or upgrade to the latest version of your browser. When reviewing resumes or job application forms, you should assess information only directly related to the qualifications, skills, knowledge, and experience required for the job. Who determines the production process, time and production method? If your term contract employee is covered by the Employment Act (EA), and has worked for at least 3 months, you must provide statutory leave benefits such as annual leave and medical leave. A fair employment contract clearly states your rights and obligations as well as the hirer's. FOZL is a Service Provider on the EDB Connections Concierge. The MOM, or the Tripartite Alliance for Dispute Management (TADM), could also consider starting a watch-list of companies found to have unfair clauses in their employment contracts. Without a solid and comprehensive employment agreement in place, employers may find their business mired with ill-disciplined workers and frequent employment disputes. Guide to Writing Fair Employment Contracts | TAFEP Non-Compete Clause Singapore: A Legal Standpoint, Restrictive Covenants In Employment Contracts, Non-Disclosure Agreements In Singapore: A Complete Guide. Who pays the employees salary? Include as much relevant information as possible and make sure that your maid understands the terms before signing. Employment Agreement Template - SingaporeLegalAdvice.com Yes. for the drafting of an employment agreement. Workers possess a valid work permit before the commencement of duties, Only work for the employer and the agreed job scope stated in the contract (No moonlighting). PDF Sample of Employment Agreement - LawOnline Singapore If an employment contract does not follow the Employment Act in Singapore even though the said employee is covered by the Act, the employer will be found guilty of a criminal offence which is punishable with a fine of up to $5000, up to six months in prison, or both. Among the most important things to include in the employment contract are: Remember that your maid should also have a say in the contract, which should only be finalised and signed after reaching a mutual agreement. You are using a version of browser which will not be supported after 27 May 2018. To continue to transact with MOM securely, please follow these steps to enable the Transport Layer Security (TLS) of your web browser, or upgrade to the latest version of your browser. It is therefore important as an employer to include your desired notice period when drafting an employment contract. Singapore law dictates that if one party does not perform to his or her obligations under a contract, the other party may file a civil suit against the other party for damages for breach of contract. Termination is to be carried out via written notice, and the length of which is to be determined either by the terms of the contract or in proportion to the length of employment, under the Employment Act (EA). There are no restrictions as to the types of confidential information that is protected under an NDA. *Source: https://www.smeportal.sg/content/smeportal/en/bizguides/human-resources/2017/guide-to-hiring-staff-in-singapore.html. It also keeps you aware of your rights and obligations as an employee of the organisation. Every employee shall be allowed in each week a rest day without pay of one whole day which shall be Sunday or such other day as may be determined from time to time by the employer. The MP also suggested a cooling off period, up to five working days for example, to allow workers to rescind an employment contract they have signed without penalty. An employment contract refers to an agreement in which one party agrees to hire the other party as an employee; the other party agrees to become an employee and serve the employer. For example: After 1 month of service, Jack is required to give the 1 months notice to terminate his employment.Click here for the sample of employment contract. Sample Part-Time Employment Contract This sample contract is designed to help you draft an employment agreement. 136, Sec. The payslips should include information such as your employees basic pay, overtime pay, bonuses, CPF deductions and other salary-related matters. Does the Employment Act cover temporary and contract employees. Managed by the SkillsFuture Singapore Agency (SSG), these funds will be used to support workforce upgrading programmes under the national Continuing Education Training (CET) system. Job aspects, work conditions or performance targets that require your attention. Repeat offenders could face fines of up to $10 000, up to 12 months in prison, or both. To continue, upgrade to a supported browser or, for the finest experience, download the mobile app. Can an employer change an employee's terms and conditions of work? Need a template for an employment agreement? Whilst Singaporean law follows a freedom-of-contract approach where both parties are at liberty to include whatever legal terms they please, contracts must still adhere to the Employment Act.