Employment Act Singapore 2026: Coverage, Rights & Termination Rules
Updated on 06 January 2026 in Business | Suki Bajaj
For HR professionals in Singapore, navigating the nuances of the Employment Act can feel like threading a legal maze. Especially with the evolving regulations and intricate policies, it’s easy to get lost in it.
Fear not, HR leaders! This blog post is your go-to guide, equipping you with the essential knowledge to confidently manage your workforce. With insights on key areas like employment passes, contract of service, and more, we’re here to help you ensure your company stays compliant and your employees feel protected.
So, buckle up and get ready to explore the landscape of Singapore's employment regulations!
Key Takeaways:
- The Part-time Re-employment Grant has been extended through December 31, 2027, to support flexible work arrangements and career planning for senior workers.
- Effective July 1, 2026, the statutory retirement age officially increases to 64, while the re-employment age for eligible employees rises to 69.
- HR must extend written re-employment offers to eligible staff at least three months before they reach the new retirement age of 64.
- As of January 1, 2026, the COMPASS framework for Employment Passes features updated scoring, including a revised list of top-tier educational institutions.
In this guide, we’ll talk about:
What is the Employment Act Singapore?
As Singapore's central labour law, the Employment Act establishes the fundamental legal framework for companies operating within the country, outlining the legal requirements that companies must adhere to throughout the employment lifecycle, from recruitment and onboarding to employee management and termination.
The Employment Act safeguards the rights of both employees and employers, ensuring fair treatment, transparency, and a stable work environment.
Importance of the Employment Act
Violating the labour laws can result in serious business damages such as government fines, licence revocation, and other disciplinary actions.
Therefore, it’s essential to follow the best practises and ensure the wellbeing of your company and your employees.
Who Is Covered Under Employment Act Singapore?
All local and foreign employees working in Singapore under a contract of service with an employer are protected by the Employment Act. These include full-time, part-time, temporary, and under contract workers.
For employees working less than 35 hours a week, they're considered part-time workers and they're covered by the Employment (Part-Time Employees) Regulations.
Note: The Part-time Re-employment Grant will be extended until December 31, 2027, to encourage employers to offer part-time re-employment, other flexible work arrangements, and structured career planning to senior workers.
Increased Retirement and Re-employment Ages
Effective July 1, 2026, the statutory retirement age increases from 63 to 64, and the re-employment age increases from 68 to 69. HR must ensure internal policies are updated and re-employment offers are extended to eligible employees at least three months before they turn 64.
Read our latest guide on Retirement Age in Singapore to learn more about the phased increases as well as MOM, CPF, and IRAS regulations on managing retirement and re-employment in Singapore.
Meanwhile, seafarers, domestic workers, and statutory board employees or civil servants aren't covered by the Employment Act. Their terms and conditions of employment will be based on the specific employment contract.
Take note that term contract employees are still a significant part of an organisation’s workforce. Employers are encouraged to follow the Tripartite Advisory on Employment of Term Contract Employees.
Keep your employment policies compliant and up-to-date with the latest MOM regulations.
Start your 14-day FREE trial today!Who Is Covered under Part IV of the Employment Act?
Part IV of the Employment Act, which provides for the rest days, work hours, and other conditions of service, is only applicable to workmen (doing manual labour) who are earning a basic monthly salary of up to $4,500 as well as non-workmen who are earning a basic monthly salary up to $2,600.
Note: The above amount excludes overtime payments, bonus payments, annual wage supplements, productivity incentive payments, and any allowance.
Managers and executives who have direct authority in business management are excluded from Part IV of the Employment Act. These also include professionals who carry out the same responsibilities as managers or executives such as lawyers, accountants, dentists, and doctors.
What Needs to Be Included in An Employment Contract?
The contract of service sets out a specified list of the terms and conditions of the working arrangement between the employee and the employers. To prevent any possible disputes, it's strongly advised to prepare a written document for the contract.
Employers are required to issue key employment terms (KETs) in writing to all employees who meet all the following requirements:
- Enter to a contract of service on or after 1 April 2016.
- Are covered by the Employment Act.
- Are employed for 14 days or more (refers to the length of the contract, not the number of days of work)
The contract must include (KETs) and essential clauses such as:
- Employer's Full Name
- Employee's Full Name
- Job title, description of the scope of duties and responsibilities
- Start date of employment
- Duration of employment (if an employee is on a fixed-term contract)
- Working arrangements including daily working hours, working days per week, and rest days
- Salary period.
- Basic salary for hourly, daily or piece-rated workers, employers must also indicate the basic rate of pay
- Fixed allowances
- Fixed deductions
- Overtime payment period (if different from item 7 salary period)
- Overtime rate of pay.
- Other salary-related details like bonuses and incentives
- Type of leave, such as annual leave, outpatient sick leave, hospitalisation leave, maternity leave, and childcare leave
- Medical benefits, such as insurance and dental benefits
- Probation period
- Notice period
- Place of work (optional) (strongly encouraged to include this detail)
For professionals, managers, and executives whose overtime pay doesn't apply, there's no need to include items 11 (OT period) and 12 (OT pay).
Common KETs like leave policy and medical benefits can also be provided in employee handbooks.
Smart Tip: QuickHR can now automatically generate and store KETs, streamlining the process for HR and employees.
Work Passes and Permits
When it comes to hiring foreign employees, there are a lot of processes involved and factors to consider. It is important to make sure that they have the appropriate work visa that authorises them to work in Singapore.
The three most common visas required are the following:
Employment Pass
For foreign professionals, managers and executives. Candidates need to earn at least $5,600 a month and pass the Complementarity Assessment Framework (COMPASS).
S Pass
For skilled workers. Candidates need to earn at least $3,300 a month.
Foreign Work Permit
For skilled and semi-skilled migrant workers in the construction, manufacturing, marine shipyard, process or services sector.
Revised COMPASS Framework for Employment Passes (EP)
As of January 1, 2026, the Complementarity Assessment (COMPASS) framework has updated its scoring criteria. HR must verify the new list of "top-tier" institutions (Criterion 2) and the revised Shortage Occupation List (Criterion 5), which now includes more healthcare roles but has removed several digital and cybersecurity positions.
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Frequently Asked Questions
The Employment Act Singapore is the country’s main labour law governing basic employment terms and working conditions. It applies to local and foreign employees working under a contract of service and sets minimum standards for salary payment, working hours, leave, termination, and employee protection.
The notice period under the Employment Act depends on what is stated in the employment contract. If no notice period is specified, statutory notice periods apply, ranging from one day to four weeks based on the employee’s length of service.
The Employment Act covers key employment matters including contracts of service, salary payment, working hours, rest days, leave entitlements, termination notice, and employee rights. Additional protections apply under Part IV for eligible employees based on job role and salary thresholds.
Part IV of the Employment Act provides additional protections related to working hours, overtime pay, and rest days. It applies to workmen earning up to SGD 4,500 and non-workmen earning up to SGD 2,600 per month, excluding managers and executives.
Section 18A of the Employment Act requires employers to issue Key Employment Terms (KETs) in writing to eligible employees. These terms include salary details, working hours, leave entitlements, notice periods, and other essential employment conditions to improve transparency.
An employer may terminate an employment contract without giving a reason if contractual or statutory notice is provided. However, termination must not be wrongful, discriminatory, or retaliatory, and employers must comply with fair employment and wrongful dismissal guidelines.
The five principles of fair employment promote merit-based hiring, equal opportunity, non-discrimination, workplace fairness, and responsible employment practices. Employers are expected to treat employees fairly regardless of age, nationality, gender, race, religion, or marital status.
The Employment Act covers both local and foreign employees working in Singapore under a contract of service, including full-time, part-time, temporary, and contract staff. Certain groups such as domestic workers, seafarers, and civil servants are excluded.
Yes. The Employment Act applies to foreign workers employed under a contract of service in Singapore, unless they fall under excluded categories. Foreign employees are entitled to the same basic protections as local employees, subject to work pass and regulatory requirements.
The Employment Act may apply to interns if they are employed under a contract of service rather than a training arrangement. Coverage depends on the nature of the internship, duration, remuneration, and whether the intern is considered an employee under the law.
Under the Employment Act, termination must follow contractual or statutory notice requirements. Employers must ensure termination is not wrongful and that final salary, unused leave, and other entitlements are paid within the legally required timeframe after termination.
The Employment Act Singapore PDF can be accessed through official government resources or reputable HR platforms. Employers and employees are encouraged to refer to the latest version to ensure compliance with current employment laws and regulatory updates.