The objective of an employment contract is to foster a positive working relationship and atmosphere between the employee and employer. Employment contracts specify the parameters controlling the relationship between an employer and an employee. If an employer does not have a comprehensive employment agreement in place, employers run the risk of recurrent employment disputes over each party’s contractual obligations.
Therefore, it is absolutely necessary that employers in Singapore acquire the services of an experienced employment law practitioner to draft an employment contract based on their instructions.
What is an Employment Contract?
The Employment Act 1968 is a Statute which governs Employment in Singapore and its application applies to all employment contracts and overrides any inconsistent terms in an employment contract.
In Singapore, Employers now have the liberty to opt for a type of employment terms (Subject to the Employment Act 1968) that best suits their needs in terms of productivity and labour. Therefore, as a Employer, it is essential that you consult an expert contract drafting lawyer in Singapore to draft employment contracts available to suit your hiring requirements and to comply with the relevant law under the Employment Act. This will enable you to make informed decisions, meet hiring expectations, and manage employee morale and retention rates as well as clearly specify Employee Obligations and Duties so that there is no misunderstanding.
Some of the most popular and widely used types are,
- Permanent Employee Contracts
- Part Time Employee Contracts
- Fixed-Term Employee Contracts
- Interns, Apprentices, or Trainees Employee Contracts
Employment Law in Singapore: The Employment Act
The Employment Act is a comprehensive regulation governing labour and employment concerns in Singapore. It outlines the fundamental terms and circumstances of employment as well as the rights, responsibilities, and obligations of employers and employees.
According to the Employment Act in Singapore, all employees must ensure their employment contracts meet the minimum standards as stipulated by the act. These include the minimum pay (where applicable) and the paid annual leave, paid medical leave, statutory holidays, and maximum working hours (where applicable) depending on the contract type offered.
What Are Key Employment Terms (KETs)?
As per the Employment Act, all employees are also bound by the law to issue a document containing all Key Employment Terms (KETs). This sets out the mandatory terms of employment.
The KETs will cover the following essentials amongst others,
- Full name of the employer and employee
- Job title, main duties, and responsibilities
- Start date, type, and duration of employment (fixed, casual, permanent…etc)
- Salary and fixed allowances and other benefits (leave, bonuses, incentives)
- And any other terms (non-disclosure/non-competition/code of conduct)
How Can an Employment Contract Drafting Lawyer Help You?
An experienced contract drafting lawyer has a thorough understanding of the employment law in Singapore and will be able to help you meet the necessary legal obligations with the best interest of your business in mind. Furthermore, meeting the regulatory requirements of the Central Provident Fund (CPF) amongst other Statutory Requirements.
By employing a contract drafting lawyer in Singapore, you can,
- set out the clear obligations of parties under the contract
- ensure the contract complies with the law for example the validity of Restraint of Trade Clauses relating to post employment competition and enforcing valid ‘Confidential Information’ Clauses
- avoid future employment disputes and provide for clear grounds for termination of the employment contract
There is no way to know how to appropriately draft a written employment contract to reduce legal risks unless you are a lawyer. Self-drafting the agreement without the advice of a lawyer can result in potentially costly mistakes. Therefore, seek proper legal advice to avoid potential employment contract disputes.
Christopher Bridges Law Firm Contract Drafting Services
At Christopher Bridges, we firmly believe that striking the right balance in protecting the best interests of the employer as well as the employee is the key to a strong, comprehensive, and binding employment contract. With extensive years of experience working with Employers both in multinational conglomerates and small and medium enterprises, and our strong working connections with our ASEAN partners, with whom we have collaborated since 1995, we are adept at what we do. Our expertise springs from our in-depth knowledge of Singapore employment law. We can assist you with the complexities of the Singapore Employment Act, KETs, and the guidelines on fair employment practices. Give us a call at (+65) 6323 2328 or send an email to seccbridges@cbridgeslaw.com for a free consultation session today.
