The short answer
The Employment Act 1968 is Singapore’s main employment statute. Its core protections cover most employees working under a contract of service, whether local or foreign, and at any salary level. The main exclusions are seafarers, domestic workers, statutory board employees and civil servants. Employers who ignore the Act face MOM enforcement, employee claims at TADM and the Employment Claims Tribunals, and in some cases prosecution. Employees who do not know what the Act gives them often go without pay and protections they were entitled to claim.
What must every employer provide?
- Key Employment Terms (KETs) in writing within 14 days of starting work, for employees hired for 14 days or more, covering essentials such as job scope, salary, hours and leave.
- Itemised payslips given together with each salary payment, or within 3 working days of it where that is not possible, showing basic pay, allowances, deductions and overtime.
- Timely salary. Salary must be paid within 7 days after the end of the salary period. Where employment ends, the Act sets its own timelines for the final payment, and which one applies depends on how the employment came to an end.
- CPF contributions for employees who are Singapore citizens or permanent residents, at the prescribed rates and deadlines.
- Statutory leave. Paid annual leave for any employee with at least 3 months’ service, managers and executives included, starting at 7 days and rising with service to a maximum of 14 days. Paid sick leave and hospitalisation leave, subject to the eligibility rules. Eleven paid public holidays. Maternity, paternity and childcare leave under the Employment Act and the Child Development Co-Savings Act 2001.
Who gets the extra Part 4 protections?
Part 4 of the Employment Act, which governs rest days, hours of work and overtime pay, applies only to workmen with a basic salary of up to S$4,500 a month and other employees with a basic salary of up to S$2,600 a month. The test is basic salary, not gross pay, so overtime, bonuses, annual wage supplements, productivity incentive payments and allowances are left out of the calculation. Employees outside Part 4, including most professionals, managers and executives, are governed by what their contract says about hours and overtime. That makes the contract worth reading closely before it is signed.
What are the rules on termination?
Either side may terminate with the contractual notice, or with salary in lieu of notice. Notice must be given in writing. Where the contract is silent, the Employment Act supplies a minimum by length of service: 1 day for under 26 weeks, 1 week for 26 weeks to under 2 years, 2 weeks for 2 to under 5 years, and 4 weeks for 5 years or more. An employer may dismiss without notice only for misconduct, and only after a due inquiry, meaning a fair internal hearing at which the employee is told what is alleged and given the chance to answer it. An employee dismissed without just or sufficient cause can bring a wrongful dismissal claim. Whether a dismissal was wrongful is judged against the Tripartite Guidelines on Wrongful Dismissal. The claim must be brought within one month of the last day of employment. Employers should record performance and misconduct issues at the time they arise. Employees should keep their contracts, payslips and correspondence.
What is changing with the Workplace Fairness Act?
The Workplace Fairness Act, expected to take effect in 2027, will prohibit adverse employment decisions based on protected characteristics such as age, nationality, sex, race, religion and disability. It will sit alongside the existing Tripartite Guidelines. Employers should start reviewing their hiring, appraisal and grievance processes now. There is a separate guide to the Workplace Fairness Act on this site.
Frequently asked questions
Does the Employment Act apply to managers and executives?
Yes, for the core provisions such as salary protection, KETs, payslips, leave and wrongful dismissal. One qualification applies to wrongful dismissal claims. A manager or executive dismissed with notice, or with salary in lieu of notice, must have served that employer for at least 6 months before a claim can be filed. That qualifying period does not apply where the dismissal was without notice, and in that case the employer must show that the dismissal was not wrongful. The additional Part 4 protections on hours and overtime do not apply to managers and executives.
Can my employer deduct my salary for mistakes or damage?
Only within the narrow grounds and limits the Act allows. Deductions made outside those grounds are among the more common claims brought at TADM, and among the more likely to succeed.
Are non-compete clauses enforceable in Singapore?
Only if they protect a legitimate proprietary interest and are reasonable in scope, duration and geography. Blanket restraints are unenforceable. This is an area Johnathan Lee handles regularly, both for employers drafting covenants and for employees seeking to move.
What records must employers keep?
Employers must keep records for every employee, including salary and leave records, and must produce them if MOM inspects. The Act prescribes how long those records must be kept, so check the current requirement before clearing old files. Poor records make disputes far harder to defend.
About the author
Johnathan Lee is an Advocate and Solicitor practising at Fong & Fong LLC. He served as a prosecutor at the Ministry of Manpower before moving into private practice, where he now acts for both employers and employees in MOM investigations, employment offences and workplace disputes.
He holds a Juris Doctor, awarded cum laude, from Singapore Management University, and a Bachelor of Arts in Sociology with a second major in Communication Studies, awarded Second Class Upper Honours, from Nanyang Technological University. He teaches business negotiations at James Cook University, Singapore Campus, as a sessional associate educator.
Get your employment framework right
Johnathan Lee advises employers on contracts, handbooks, KETs and MOM compliance, and employees on their rights and exits.
Johnathan Lee, Advocate & Solicitor · 21 Merchant Road #04-00 Unit 502 Singapore 058267
This article is for general information only and is not legal advice. The law stated is as at July 2026.