1. Overview of the Employment Law Framework
Singapore is globally recognized for its efficient, transparent, and business-friendly regulatory environment. Employment relationships in Singapore are governed by a legal framework designed to balance the needs of employers with the rights of employees. These laws apply across both local and foreign hires and are stringently enforced by the Ministry of Manpower (MOM).
2. Primary Employment Statutes and Regulatory Bodies
The following laws form the backbone of employment governance in Singapore:
- Employment Act (Cap. 91)
- Employment of Foreign Manpower Act (EFMA)
- Workplace Safety and Health Act (WSHA)
- Industrial Relations Act
- Child Development Co-Savings Act
The primary regulator is the Ministry of Manpower (MOM), supported by enforcement divisions such as the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) and the Tripartite Alliance for Dispute Management (TADM).
3. Employment Contracts: Legal Requirements
While Singapore does not mandate written contracts for all employees, employers are required to issue Key Employment Terms (KETs) in writing within 14 days of employment commencement. These must include job scope, salary, working hours, leave, and notice period. Employers who fail to issue KETs may be fined up to SGD 5,000 per infraction.
4. Working Hours and Overtime: Statutory Standards
Under Part IV of the Employment Act, for eligible employees:
- Max 44 hours/week (8 hours/day over 5.5 days)
- Minimum 1 rest day per week
- Overtime rate: 1.5x hourly rate
- Max overtime: 72 hours/month
Employers failing to comply face fines or even imprisonment for repeat offences.
5. Wages and Payroll Compliance
There is no universal minimum wage in Singapore, except for specific sectors under the Progressive Wage Model (PWM). Employers must:
- Pay salaries within 7 days after each salary period
- Provide itemized payslips
- Retain salary records for 2 years
- Avoid unauthorized deductions
- Failure to do so may result in penalties and debarment from hiring foreign workers.
6. Foreign Worker Regulations and Employer Duties
Employers must apply for the correct work pass for foreign hires:
- Employment Pass (EP): For professionals. From 2025, new applications must meet a minimum salary of SGD 5,600/month. Renewals in 2025 remain at SGD 5,000. From 2026 onwards, all applications must meet the SGD 5,600 threshold, which will increase progressively with age and may vary by sector.
- S Pass: Mid-level skills with separate quota and levy
- Work Permit: For semi-skilled workers, subject to strict controls
Employers are responsible for: - Providing medical insurance and acceptable accommodation
- Ensuring repatriation of workers upon contract end
- Compliance with quotas, levies, and reporting
Violations under the EFMA may result in fines, jail terms, and blacklist from future hiring.
7. Labor Inspections and Enforcement Risks
MOM conducts routine and unannounced inspections. These may include:
- Workplace audits for safety and lawful employment
- Review of employment records and payroll
- Employee interviews
Non-compliance may result in warnings, financial penalties, suspension of work passes, or prosecution in serious cases.
8. How AYP Helps You Stay Compliant
AYP’s Employer of Record (EOR) services ensure that:
- Employment contracts comply with legal standards
- All work pass applications meet MOM guidelines
- Payroll and wage practices are compliant
- Companies avoid Permanent Establishment (PE) and labor risks
Our legal team tracks law changes so you don’t have to.
9. Contact Us
Hiring in Singapore? Let AYP manage your employment compliance, HR documentation, and payroll — so you can scale without legal risk.
👉 Contact us today to learn more.
