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The Employment Act

The Employment Act lays down terms and conditions of employment to protect employees against unfair practices.

Who Does The Employment Act Protect?
Who Is An "Employee"?
What Are The Terms And Conditions In The Employment Act?
Where Can I Find More Information?


Who Does the Employment Act Protect?

  • The Employment Act protects all employees regardless of nationality.

  • Employees include workmen involved in manual labour.

  • However, there are some exceptions. The Employment Act does not protect employees who are:

    • employed in a managerial, executive or confidential position
    • seamen
    • domestic workers
    • employed by a Statutory Board or by the Government

  • In deciding whether an employee is in a managerial, executive or confidential position, the law will look at the job duties and not the job title.

    • Illustration: An Office Manager is not automatically considered a "Manager" if his or her duties are merely clerical. A manager is someone who can hire, fire, promote and reward other employees.

  • Employees who are not covered under the Employment Act must rely on the terms in their employment contract.

See: Coverage of the Employment Act

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Who Is An "Employee"?

  • Unlike freelancers and independent contractors who are hired under a contract for service, an employee is someone who works for you under a contract of service.

  • Under a contract of service:
    • You can control the working hours.
    • The person hired is entitled to leave and overtime.
    • You pay a monthly salary instead of a fee for work done.
  • The more control you have over the person hired, the more likely it is an employer-employee relationship. The law will imply such relationship even if your contract is termed "contract for service".
  • It is very important to know the difference between an employee and a freelancer. Employees are entitled to protection under the Employment Act. You also have to contribute CPF for employees, but not for freelancers.
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What Are The Terms And Conditions In The Employment Act?

  • The Employment Act does not cover all terms and conditions of an employment contract. It only covers some of the basic terms and conditions.
  • You will still need to draw up your own employment contracts to spell out the rights and duties of your employees. However, if the employee is protected under the Employment Act, the terms in your contract cannot be less favourable than those in the Employment Act.
  • Here are some of the basic terms covered in the Employment Act:
    • hours of work
    • shift work
    • overtime
    • rate of overtime payment
    • salary and bonus
    • rest days
    • public holidays
    • sick leave
    • annual leave
    • retrenchment benefits
    • retirement benefits
    • maternity benefits
    • childcare leave
    • termination and notice

See: Information on Employment Standards

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Where Can I Find More Information?

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Last updated on 10 November 2009
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