SINGAPORE Law and Practice Contributed by: Kelvin Tan, Benjamin Gaw and Lim Chong Kin, Drew & Napier LLC
Any term of an employment contract which is less favourable than the conditions of service prescribed by the Employment Act for an employee covered under the Act is deemed to be illegal, null and void to the extent that it is less favourable. Terms Implied in Law In addition to the agreed employment terms, there is some indication that the Singapore courts are likely to recognise that an implied duty of mutual trust and confidence exists between employer and employee. 1.3 Working Hours Working Hours and Overtime Regulations Employees whose terms of employment are protected by the Employment Act (see 1.1 Employee Status ) are not required to work more than: • six consecutive hours without a period of leisure; or • eight hours a day, or more than 44 hours a week. If an employer requires a protected employee to work overtime, the employer has to pay the employee at least 1.5 times the employee’s hourly basic rate of pay. In addition, a protected employee is not allowed to work overtime for more than 72 hours in a month. Working on a rest day or public holiday does not count towards the 72-hour overtime limit except for work done beyond the usual daily working hours on those days. Part-Time Employment An employee who is required to work fewer than 35 hours a week is considered a part-time employee. Part-time employees covered under the Employment Act are entitled to the same rights and benefits as full-time employees, but their statutory entitlements (eg, to annual leave, sick leave and maternity leave) are prorated. Flexible Working Arrangements The Tripartite Alliance for Fair and Progressive Employ - ment Practices (TAFEP) – a body with representatives from the government, trade unions and employers – encourages employers to enable flexible working arrangements, which have become more accepted in the workplace.
In April 2024, the Ministry of Manpower (MOM) announced that all ten recommendations by the Tripar - tite Workgroup on the Tripartite Guidelines on Flexible Work Arrangement Requests (the “FWA Guidelines”) have been accepted by the government. Employers are expected to abide by the mandatory FWA Guide - lines, which came into effect on 1 December 2024. The FWA Guidelines are aimed at making it easier for employees to request flexible work arrangements, while acknowledging that employers continue to have the prerogative to decide on work arrangements. The FWA Guidelines establish how formal flexible work arrangements requests should be made, how employers should consider such requests in a proper manner, and the requirement for employers to com - municate decisions on such requests in a transparent and timely manner. 1.4 Compensation No Minimum Wage – Progressive Wage Model There is no general minimum wage in Singapore. However, employers in certain prescribed sectors which employ low-wage employees are required to implement a progressive wage model (PWM). In respect of each sector, the PWM provides minimum basic wage requirements, minimum annual increases as well as the necessary certifications and qualifica - tions that employees in these sectors would need to secure a higher minimum wage under the PWM. The Singapore government is seeking to expand the PWM to cover more sectors over time. National Wages Council The National Wages Council is a tripartite body com - prising representatives from employers, trade unions and the government. It formulates wage guidelines in line with Singapore’s long-term economic growth, which are used by both unionised and non-unionised companies as a framework or reference point to deter - mine wage increases for their employees. The guide - lines are recommendations, not legal requirements. Bonuses Bonuses are payable depending on contractual terms and employers’ discretion.
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