Most employers in Singapore have an employment contract template — one that has been used for years, tweaked occasionally, and assumed to be “fine.”
But here is the thing: employment law in Singapore has been updated more than once in the past few years. And the Employment Act does not just ask that you have a contract. It asks that your contract covers specific terms, in a specific way, within a specific timeframe.
If you have not reviewed your template lately, you might be more exposed than you think.
What Are Key Employment Terms (KETs)?
Since 1 April 2016, Singapore employers are legally required to issue Key Employment Terms (KETs) in writing to employees covered under the Employment Act.
This is not optional documentation. It is a statutory obligation.
KETs must be given to the employee before their first day of work, or within 14 days of starting employment — whichever is earlier. If you are issuing offer letters weeks after someone has already started, you may already be outside the window.
Who Is Covered?
The Employment Act covers all employees under a contract of service, except domestic workers, seafarers, and statutory or uniformed personnel.
Part IV provisions — which govern overtime, rest days, and hours of work — apply to workmen earning up to S$4,500/month, and non-workmen earning up to S$2,600/month.
If your employees earn above these thresholds, Part IV does not apply — but the core provisions still do. This distinction matters when drafting overtime and rest day clauses.
What Must Be in a Compliant Employment Contract?
Under MOM’s KETs requirements, your contract must clearly state:
| Term | What to include |
|---|---|
| Full name of employer and employee | Legal names, not nicknames or shortened forms |
| Job title and main duties | Specific enough to reflect actual scope |
| Start date | And end date, if fixed-term |
| Working hours and days | Including whether shift work applies |
| Salary and payment frequency | Basic salary, payment cycle (monthly or bi-weekly) |
| Fixed allowances | Separately itemised from basic salary |
| Leave entitlements | Annual leave, sick leave, and any additional leave |
| Probation period (if applicable) | Duration and notice period during probation |
| Notice period | For both resignation and termination |
| Other benefits | Bonus, medical, insurance — if promised, it should be documented |
Missing even one of these does not just create ambiguity — it creates a gap that can work against you in a dispute.
Where Most Contracts Fall Short
1. Probation clauses that do not match statutory requirements
Probation is not defined under the Employment Act — the duration is up to the employer. But notice during probation is still required unless your contract explicitly states a shorter notice period. Many contracts say “1 week’s notice during probation” without specifying whether this applies to both parties. That vagueness has cost employers in wrongful dismissal cases.
2. Leave entitlements stated as a fixed number — permanently
The Employment Act requires annual leave to increase by 1 day per year of service, up to 14 days. If your contract states “7 days annual leave” with no mention of progression, you are not documenting entitlements correctly for longer-serving employees.
3. No mention of itemised payslips
Since 1 April 2016, all employers covered by the Employment Act must issue itemised payslips to employees — either on payday or within 3 working days. Payslips must include: basic salary, allowances, deductions, overtime pay, and net take-home pay.
This is one of the most frequently overlooked requirements among small businesses. If you are handing over a bank transfer and calling it done, there is a gap.
4. Overtime clauses that do not distinguish employee categories
Not all employees are entitled to overtime pay under the Act. But if your contract promises overtime pay to employees above the threshold — or does not address it at all — you may be creating expectations that differ from what the law requires.
A Quick Self-Check
Before your next hire, or the next time you renew a contract, ask yourself:
- Is this contract issued before or on the first day of work?
- Does it cover all the KETs items listed above?
- Are leave entitlements clearly stated with annual progression?
- Does the probation clause specify notice for both parties?
- Are you issuing itemised payslips every pay cycle?
If you hesitated on any of these, it is worth a proper review — not just a quick edit.
Why This Matters More Than You Think
An employment contract is not just internal paperwork. In the event of a dispute — whether over termination, non-payment, or unfair treatment — MOM and the Employment Claims Tribunal will refer directly to what is written in your contract.
Gaps in your contract do not just create administrative problems. They can shift liability in directions you did not anticipate.
Most employers discover their contracts are not compliant when a dispute is already in progress. By then, the options are narrower.
Not sure if your contracts cover what they should? A structured review can catch gaps before they become problems.