5 things Singapore bosses must know when drafting an employment contract

As a first-time director or a manager in medium-sized companies who’s on a hiring spree, you’re thinking: “What clauses should a Singapore employment contract constitute?” There are five key considerations when drafting one.

Employment contracts differ for each region or country; cultural and social factors being the main elements that affect clauses. Currently, the employment laws in Singapore, guided by the Singapore Employment Act, covers all mid-level working here.

Validity

Any clauses in an employment contract that is more stringent than the provisions under the Act, would be considered null.

Presentation

An employment contract should be on the official stationery of the employing company. As a separate legal entity, the company is considered as entering into a contract with the potential employee when the document of employment is branded with the company’s logo and letterhead.

Minimum terms

An employment contract should cover the following:

·                 Date of employment

·                 Appointment – job title and job scope

·                 Hours of work

·                 Probation period (if any)

·                 Remuneration

·                 Details of leave

·                 Clauses for termination of contract

·                 Code of conduct

Making a claim

Legally an employment contract is validated at the time a potential employee accepts the clauses in the contract and signs his consent. Subsequent to the signing of contract, if the employee declines from the arrangement and does not turn up for work, the employer can pursue a civil claim via a lawyer. There is no protection offered to the employer under the Employment Act since the employment has yet to officially commence.

Amendments

Any changes to an employment contract should be expressly agreed upon between the employer and the employee. The changes should be made in writing and signed by both parties. If the employer changes clauses in an employment contract and subsequently the employee refuses to accept them, the changes are considered invalid.

It is important that an employment contract is prepared or vetted by a professional, familiar with the local employment rules.