Hiring in Singapore gives you access to a skilled, educated workforce. With a strong economy, high standard of living and business-friendly environment, Singapore is the perfect destination for global expansion. But to ensure smooth operations and avoid legal headaches, understanding the Singapore Employment Act and other labour laws is important for any foreign employer. This article covers the key employment laws in Singapore and how to hire while staying compliant.
Content Outline
Key Takeaways
Understanding Employment Laws
Singapore’s Employment Act serves as the primary legislation governing employment terms, ensuring fair treatment and outlining employer obligations. Familiarity with this Act is essential for compliance.
Statutory Entitlements
Employees are entitled to specific benefits, including regulated working hours, overtime pay, annual leave, sick leave, and maternity/paternity leave. Ensuring these entitlements are met is crucial for employers.
Hiring Considerations
Singapore’s multilingual workforce offers advantages for businesses. However, employers should be mindful of cultural nuances, health benefit expectations, and the overall employment cost structure.
Compliance Strategies
: Given the complexities of Singapore’s labour laws, partnering with an Employer of Record (EOR) like FastLaneRecruit can be advantageous. An EOR manages employment responsibilities, ensuring adherence to local regulations and simplifying the hiring process.
Key Labour Laws in Singapore
Singapore’s employment is governed by several key laws that cover employee rights and employer obligations. The main piece of legislation is the Singapore Employment Act which sets out the basic employment terms for all employees. It applies to all employees under a contract of service except for seafarers, domestic workers and public servants.
Other laws include:
- Common Law: Employment contracts and workplace disputes.
- Child Development Co-Savings Act: Parental leave.
- Employment of Foreign Manpower Act: Foreign worker employment.
- Work Injury Compensation Act (WICA): Workplace injuries and compensation.
- Workplace Safety and Health Act (WSHA): Safe working conditions.
Uniform Singapore Employment Laws
Unlike many countries with state or regional employment laws, Singapore has a national-level employment law. This makes compliance simpler as businesses only need to follow one set of laws. The Singapore Employment Act is a one-stop shop, making it easier for foreign employers to be compliant with labour laws across the whole country.
Employers must comply with key areas such as working hours, leave entitlements and employee benefits. For example, the Employment Act regulates overtime pay, working hours and rest days which must be included in employment contracts.
Hiring Singaporean Employees: What to Consider
When hiring in Singapore, businesses must consider several key points. Singapore’s workforce is multilingual, with English, Mandarin, Malay and Tamil being the most spoken languages. This cultural and language diversity can be an advantage for businesses looking to expand into Asia.
Health benefits are another important aspect as 90% of Singaporean employers offer supplementary health insurance. Understanding Singapore’s tax and employment cost structure is crucial for budgeting purposes. For example, use a PEO/EOR Cost Calculator to estimate total employment costs.
If you don’t have a legal entity in Singapore, working with an Employer of Record (EOR) with us is a solution. An EOR manages employment responsibilities on your behalf including payroll, taxes and compliance so you meet all legal requirements without setting up a local entity.
Statutory Employment Entitlements
Employees in Singapore have statutory entitlements that employers must comply with. Singapore does not have a minimum wage but has the Progressive Wage Model for certain sectors like cleaning and security to ensure minimum pay for those industries.
Other key entitlements include:
- Working hours: Employees cannot work more than 12 hours a day and overtime pay is at 1.5 times the basic hourly rate.
- Leave entitlements: Employees are entitled to annual leave, sick leave and maternity or paternity leave under the Child Development Co-Savings Act.
- Discrimination and probation periods: Although there is no anti-discrimination law yet, employers are encouraged to follow Tripartite Guidelines for fair employment practices. Probation periods are not mandatory but typically range from 3 to 6 months.
Employers should also be aware of Singapore’s Work Injury Compensation Act (WICA) which covers workers’ claims for work-related injuries. For local and foreign workers performing manual or non-manual work below a certain salary, employers are required to provide mandatory insurance.
Simplified Hiring with FastLaneRecruit’s Employer of Record
Singapore’s labour laws can be complicated especially for foreign employers who are not familiar with the local regulations. FastLaneRecruit offers full Employer of Record (EOR) services to simplify the hiring process and be compliant with Singapore employment laws.
Let FastLaneRecruit handle all your HR responsibilities from payroll management and tax filing to employee benefits and offboarding. Whether you are hiring local talent or expanding your global workforce, our customised solutions will get you hired smoothly and compliant with the Employment Act Singapore. Get in touch with FastLaneRecruit today for an EOR solution tailored to your business needs.
