Avail Asiabiz Personalised Singapore Employment Act

Singapore Employment Act and common practices applied to employment contracts, wages, and benefits when hiring employees in Singapore. The best employees must be recognized and rewarded by an effective compensation and employee benefit plan. Successful employee benefits strategies raise productivity, increase employee retention, and have a positive impact on the bottom line. It is often difficult for small-to-mid-size companies (SMEs) in Singapore to match the benefits package of bigger companies. Every small company must see to it that its benefits package meets the needs of its employees and can compete with what other SME companies offer.

Who Does Employment Act Apply To?

The relationship between employer and employee in Singapore is regulated largely by the contract of employment between them. As a general rule, the parties are free to enter into employment contracts with each other, subject only to the limits provided by the Employment Act and other certain limits. The Singapore Employment Act does not apply to all employees. Only those employees defined under the Act are covered. Thus, the Employment Act does not apply to the following persons:

* Managerial & Confidential Positions this position covers those persons who have direct authority or influence in the hiring, firing, promotion, transfer, reward or discipline of other employees
* Domestic Workers
* Seamen
* Most of the Government Staff

Importance of Employment Contract

Employment Contract is also known as Employment Agreement, Appointment Letter, Offer Letter, etc. An Employment Contract is an agreement between an employee and employer that specifies the terms and conditions of employment. It is advisable to have a written employment contract in Singapore. Typically, only senior management employees might have the option of negotiating their employment contracts. If an employer or employee violates one or more of the terms in an employment contract, he is considered to have committed a breach of contract. Important clauses included in most employment contracts are:

* Appointment position
* Duration of employment contract, if applicable
* Date of employment commencement
* Renumeration package
* Hours of work
* Employee benefits
* Probation clause, if applicable
* Code of conduct
* Termination

The terms and conditions of the employment contract cannot be less favorable than what is stipulated in the Employment Act. Employee benefits are often called fringe benefits or perks. There are various types of compensations provided to employees in addition to their normal salaries. These other employee benefits include the following: sick leave, annual leave, maternity leave, incentives & bonuses, relocation assistance; health care benefits, retirement fund contributions, housing allowance, allowance for childrens education, childcare benefits, and transportation reimbursements.