With the deepening of globalization, when enterprises expand their business in multiple countries, cross-border labor compliance has become one of the most complex and severe challenges. To help enterprises systematically address this issue, we have collaborated with top labor lawyers from over 50 major jurisdictions worldwide (all recommended by Chambers, The Legal 500, or equivalent institutions) to jointly compile a Chinese-English labor & employment compliance guide exceeding 1 million words, and we will continuously update relevant key points.

This article publishes the key points of labor & employment compliance by September 2025 in Singapore. 

01 Overview of the Labor Law System

1.Legal System

There are three primary sources of law in Singapore. The Constitution is the supreme law. The second source of law is legislation / statutes. The third source is common law.

2.Resources and Agencies

The main statute governing employment in Singapore is the Employment Act 1968 (the “EA”). The EA sets out terms and conditions at work for employees working under a contract of service with an employer, including local and foreign employees.

The primary government agency that regulates employment law in Singapore is the Ministry of Manpower (“MOM”). The MOM enforces the EA and the EMFA.

02 Employment Qualifications and Classification

1.Employment Age

Children below the age of 13 cannot be employed. For persons between 13 and 16 years old, the type of work they may perform and the hours of work, are limited. Employers need to make the necessary notifications to MOM before employing such persons.

The retirement age is 63 for Singapore Citizens and Singapore Permanent Residents, and provided the employee joined the employer before turning 55. From 1 July 2026 onwards, the retirement age is 64.

2.Qualifications for Foreign Employers

Foreign businesses with no presence in Singapore cannot use an Employer of Record (“EOR”) to apply for work passes for foreigners to work in Singapore. Work passes can only be granted to foreigners working for Singapore-based companies. EORs who engage foreigners in the aforesaid behaviour would be committing an offence.

3.Classification of Employment

The types of employment relationships include:

• Contract of service;

• Contract for service;

• EOR.

4.Foreign Workers

All foreigners working in Singapore must have a valid work pass.

For professionals:

• Employment Pass;

• EntrePass;

• Personalised Employment Pass;

• Overseas Networks & Expertise Pass.

For skilled and semi-skilled workers:

• S Pass;

• Work Permit for migrant worker.

03 Recruitment and Employment Contracts

1.Background Examination

There is generally no express restriction or prohibition against background checks on applicants in Singapore. However, employers should note that the Personal Data Protection Act 2012 ("PDPA") provides that on or before collecting, using or disclosing an individual's personal data for the purpose of entering into an employment relationship with the individual, the organisation is to inform the individual of that purpose.

2.Contract Types

Employees can be employed on any of the following terms:

• Full-time;

• Part-time (i.e. work less than 35 hours per week);

• Temporary;

• Contract.

3.Probationary Period

There is no stipulated customary or maximum probationary period permitted by law, but probationary periods generally tend to range between 1 to 6 months, depending on the seniority and role carried out by the employee. Employers may retain the discretion to extend probationary periods if necessary. These terms should be reflected in the employee’s employment contract.

04 Working Standards

1.Remuneration

Typically, an employee’s remuneration may include various components such as salary, allowances, bonuses, Central Provident Fund (“CPF”) contributions, etc. Singapore does not have a universal minimum wage, but it enforces sector-specific minimums through the Progressive Wage Model (“PWM”) and Local Qualifying Salary (“LOS”) for local workers.

2.Statutory Benefits and Social Security

The CPF is a mandatory social security savings scheme funded by employers and employees. CPF only applies to Singapore Citizens and Singapore Permanent Residents.

3.Working Hours

There are restrictions on the number of working hours for employees covered under Part 4 of the EA, but not in respect of other employees. Part 4 of the EA applies to workmen earning a salary not exceeding $4,500 per month, and employees earning a salary not exceeding $2,600 per month. For all other employees, they may agree on working hours with their employers, including having flexible working hours.

4.Rest and Leave

For Part 4 employees, they are entitled to 1 rest day per week. For all other employees, the normal working hours are set out in the employment contract, which are typically Monday to Friday, between 9am to 6pm, subject to work exigencies.

The key statutory leave entitlements provided under the EA:

• Annual leave;

• Public holidays;

• Sick leave;

• Maternity leave;

• Paternity leave;

• Shared parental leave;

• Childcare leave;

• Unpaid infant care leave.

05 Occupational Health and Special Protection

Employers must:

• Conduct risk assessments to identify hazards and implement effective risk control measures;

• Make sure the work environment is safe;

• Make sure adequate safety measures are taken for any machinery, equipment, plant, article or process used at the workplace;

• Develop and implement systems for dealing with emergencies;

• Ensure workers are provided with sufficient instruction, training and supervision so that they can work safely.

06 Personal Information and Privacy

1.General Rules

The PDPA governs the collection, use and disclosure of personal data in Singapore. Personal data refers to data that can be used to identify an individual, whether true or not (e.g. medical history, education background, employment history, etc.), with or without other information which the organisation is likely to have access. There are several key obligations to be borne by the employer in respect of personal data.

2.Transnational Transfer

To transfer employees' personal data overseas, an employer must take appropriate steps to ascertain whether, and ensure that, the overseas recipient is bound by legally enforceable obligations to provide the transferred personal data with a standard of protection that is comparable to the protection under the PDPA.

07 Anti-Discrimination and Anti-Harassment

1.General Rules

The WFA requires employers to put in place grievance handling procedures, mandates confidentiality in grievance processes and in the identity of the whistleblower, and expressly prohibits retaliation against whistleblowers. This creates official channels for employees to report workplace misconduct and ensures that employees who whistleblow are accorded protections, allowing employees to raise their complaints without fear of reprisal.

2.Protective Characteristics

The upcoming WFA prohibits employers from making adverse employment decisions based on protected characteristics across 5 broad categories:

• Age;

• Nationality;

• Sex, marital status, pregnancy status, and caregiving responsibilities;

• Race, religion, and language;

• Disability and mental health conditions.

08 Internal Policies

1.Applicability

It is common for employers to develop internal policies to regulate various employment issues faced by employees. The types of policies that are commonly covered in an employee handbook include workplace conduct, leave benefits, anti-discrimination and anti-harassment, investigation and disciplinary procedures, data privacy, social media, termination, and IT.

2.Validity

Generally, employers can establish their own internal policies that apply to employees without having to seek approval or consent from other organisations or authorities. While approval or consent need not be sought from authorities, employers should ensure that their internal policies comply with the relevant legislation and laws, and are aligned with best practices.

3.Whistleblowing

Singapore does not have overarching whistleblower protection legislation.

09 Transactions

1.Employment Relationship

If a business is transferred from one person to another, such transfer does not terminate the employment contract of the transferred employees, and the employment contracts continue to have effect after the transfer as if it was originally made between the employee and the transferee.

2.Compensation

There is generally no statutorily mandated compensation to be awarded to employees following an M&A or equity/ asset transfer.

10 Termination of Employment

1.Termination Grounds

Pursuant to the EA, an employer may dismiss an employee with notice or on grounds of misconduct. Employers are not required by law to provide a reason for terminating the employment of an employee.

2.Termination Procedure

Where dismissal is with notice, a notice of termination in writing must be issued to the employee prior to / at the time of dismissal. Employers need not specify the reason for termination. If an employee resigns, he/she must provide a resignation in writing and serve the contractual notice period stipulated in the employment contract, or pay the employer salary in lieu of notice. On the other hand, if the employer terminates employment, the employer will either serve the contractual notice period, or be paid salary in lieu of notice by the employer.

3.Termination Protection

Employees are protected from dismissal in the following circumstances, including:

• When the dismissal is based on discriminatory grounds, when the dismissal is for depriving the employee of an employment benefit, or when the dismissal is for punishing an employee for exercising his / her statutory right;

• Employers are prohibited from dismissing employees on maternity leave;

• Employers are prohibited from dismissing employees below 63 on the sole ground of age.

4.Severance and Compensation

There is no legislation establishing the right to severance pay upon termination of employment.

5.Wrongful Termination

If an employee succeeds in a claim for wrongful termination, the employer may be liable to compensate the employee for any salary in lieu of notice owed to the employee, reinstate the employee’s employment, or nominal damages. Whether the employer or employee will succeed in a wrongful dismissal claim depends on the facts and evidence of the case.

6.Mass termination and Layoffs

Employers which are unionized should also consult with the union prior to retrenching employees. It is mandatory for employers with at least 10 employees to notify the MOM of any retrenchment exercise. The notification must be made within 5 working days of the employee being informed of the retrenchment.

11 Confidentiality, Non-Compete, and Non-Solicitation

1.Confidentiality

It is important for employment agreements to contain confidentiality clauses in order to prevent unauthorised disclosure of confidential information of the business to third parties. Note that there are some exceptions to the confidentiality obligation, such as where the law requires disclosure, or when the information has become publicly available through other means.

2.Non-Compete and Non-Solicitation

Under Singapore law, a restrictive covenant is not automatically enforceable. The Courts do not enforce a restrictive covenant which merely protects the employer by way of a bare and blatant restriction of the freedom to trade.

The employer who wishes to enforce the restrictive covenant against the employee will need to show that the restrictive covenant (i) protects a legitimate proprietary interest of the employer; and (ii) the restrictive covenant is reasonable in the interests of the parties and the public.

12 Work Representation and Trade Unions

1.Work Representation

The Trade Unions Act regulates trade unions in Singapore. A trade union is an association of workers or employers, whose primary goal is to regulate relations between employers and workers to (i) promote strong industrial relations; (ii) improve working conditions and the economic and social status of workers; and (iii) increase productivity for the benefit of the workers, employers, and economy.

2.Trade Unions

A primary trade union in Singapore is the National Trades Union Congress (“NTUC”), which consists of 58 affiliated unions, 7 affiliated associations, 12 social enterprises, and 6 related organisations. Singapore also practises tripartism, where unions, employers and the Government collaborate to promote shared economic and social goals. MOM, NTUC, and the Singapore National Employers Federation (“SNEF”) are the tripartite partners.

13 Dispute Resolution

1.Procedures & Enforcement

Prior to filing a claim before the ECT, it is compulsory to undergo mediation at the TADM. For wrongful dismissal claims, the limitation period is 1 month from the last day of work.

For pregnant employees who have been wrongfully dismissed without being paid maternity benefits, the limitation period is 2 months from the date of confinement.

2.Waiver & Enforcement

An employee may waive contractual rights to potential employment claims, but he/she cannot waive statutory rights conferred by the EA.

14 Others

1.Latest Development & Trends

It is anticipated that a Tripartite Guidelines on Restraint of Trade Clauses in Employment Contracts will be released in due course. The guidelines aim to set out how and when restrictive clauses in employment contracts can and should be used, based on established principles set out by the Courts.

2.Cultural and Religious Considerations

In conjunction with the TG-FWAR, international investors should also be sensitive and considerate in deciding on FWA requests, especially during major religious or racial festivals. It is not uncommon for companies to allow celebrating employees to be offered a half day off prior to the festival, for employees to prepare for the festivals. Employers may also consider offering flexible working hours for employees who fast during Ramadan.

* To avoid ambiguity, this article should not be regarded as legal advice.

Authors

Amarjit Kaur is a partner in the litigation and arbitration team, and head of the employment practice at Withers KhattarWong in Singapore. She specializes in crisis management and strategic global mobility. She advises clients across the spectrum of contentious and non-contentious employment issues. She has steered companies, founders and senior executives through complex employment issues arising out of investigations, reduction in force exercises, business transfers, employment incentives in the cryptocurrency era, enforcement of restrictive covenants, and M&As.

Translator

Jin Dongjie, Master of Laws, associate at Anli Partners. Area of expertise: Labor Law, ESG Compliance, Dispute Resolution.