In Singapore, for employment to be valid there must be a contract that has been agreed upon between the employers and the employee/s. In principle, employer and employee could enter into contractual obligations without a written contract. According to Sharon Bernhardt, that Singapore is known for its thriving business economy as well according to the WEF Global Competitiveness Report, Singapore is the most competitive economy in Asia, ranking third in the world and following only Switzerland and the United States. It is a common practice in Singapore for businesses to utilize employment contracts with their employees. There are no specific guidelines for employment contracts in the Employment Act. However, a contract in Singapore typically contains information about duties, salary, work hours, benefits and termination. Employment contracts are also typically documented in writing to preserve documentation.
I. The Employment Act
Labour Laws in Singapore is stated through the Employment Act. As stated in the AGC Singapore site, that “the Employment Act covers every employee (regardless of nationality) who is under a contract of service with an employer”, except: a. Any person employed in a managerial or executive position b. Any seaman; c. Any domestic worker; and d. Any person employed by a Statutory Board or the Government.
It is also stated that part IV of the Act, which provides for rest days, hours of work and other conditions of service, applies only to: a. Workmen earning not more than $4,500 basic monthly salaries and b. Employees earning not more than $2,000 basic monthly salaries.
A. Managers & Executives under this Employment Act
In Singapore, managers and executives are employees with executive or supervisory functions. These functions include the authority to influence or make decision on issues such as recruitment, discipline, termination of employment, assessment of performance and