The Employment Act in Singapore: Coverage, Core Provisions, and What Has Changed

The Employment Act 1968 is Singapore's general employment statute. It sets out minimum terms of employment that override any less favourable contractual terms. Where the contract is more generous than the Act — longer notice, more leave, higher retrenchment benefits — the contract prevails.

The Act is administered primarily by the Ministry of Manpower (MOM). Disputes are mediated at the Tripartite Alliance for Dispute Management (TADM) and adjudicated at the Employment Claims Tribunals under the Employment Claims Act 2016, or in the State Courts and the General Division of the High Court for higher-value or specialist matters.

The Act is not the entirety of Singapore employment law. The relationship is also governed by:

• The employment contract itself — express terms on remuneration, duties, notice, restrictions;
• Common-law implied terms — trust and confidence, fidelity, reasonable care;
• The Workplace Fairness Act 2025 — Singapore's first dedicated anti-discrimination statute in employment;
• The Employment of Foreign Manpower Act 1990 — work-pass framework for non-residents;
• The Industrial Relations Act 1960 — trade unions and collective bargaining;
• The Protection from Harassment Act 2014 — harassment in and outside the workplace; and
• The Tripartite Guidelines on Fair Employment Practices (TGFEP) and the Tripartite Guidelines on Wrongful Dismissal — soft-law standards backed by MOM and TAFEP enforcement.

The Act has been amended multiple times since 1968. The most significant recent change was the 2019 amendment, which removed the salary cap on coverage and brought all employees within the Act's basic protections.

Before April 2019, the Employment Act excluded "executives" earning above a defined monthly threshold, leaving them to rely principally on their employment contracts. The 2019 amendments expanded coverage so that the Act now applies to all employees in Singapore under a contract of service, regardless of salary, sector, or nationality.

Who is included

• Local employees (Singapore citizens and permanent residents);
• Foreign employees holding a valid work pass (Employment Pass, S Pass, Work Permit);
• Part-time and full-time employees;
• Fixed-term and permanent employees;
• Executives, managers, and professionals at all salary levels.

Who is excluded

• Seafarers — covered by the Merchant Shipping (Maritime Labour Convention) Act 2014;
• Domestic workers — foreign domestic workers are covered by the Employment of Foreign Manpower Act 1990 and the MOM standard employment contract;
• Statutory board employees — covered by their own employment frameworks;
• Public officers (civil servants) — covered by the public service framework.

Independent contractors — genuinely self-employed individuals working under contracts for service rather than contracts of service — are outside the Act. The dividing line between employee and contractor is fact-specific and is occasionally tested at the ECT and the courts, applying the multi-factor test familiar from common-law jurisdictions: control, integration, mutuality of obligation, provision of equipment, financial risk, and so on. Mislabelling employees as contractors to avoid Employment Act obligations is a recurring enforcement concern.

The 2019 expansion meant that, for the first time, every employee — including the most senior executive — had at least the Act's baseline statutory protections. The smaller residual category of carve-outs from particular provisions (rather than from the Act as a whole) is now Part IV.

Part IV of the Employment Act adds further protections on top of the general framework, but applies only to two narrower groups:

• Workmen earning a monthly basic salary of not more than S$4,500 (as at 2026); and
• Non-workmen earning a monthly basic salary of not more than S$2,600 (as at 2026).

These thresholds are reviewed periodically by MOM. Employers should confirm the current thresholds on the MOM website when reviewing payroll structures.

What Part IV adds

• Hours of work. Limits on daily and weekly working hours and on consecutive hours without a break;
• Overtime pay. Statutory entitlement to overtime at 1.5 times the hourly basic rate, with a monthly cap of 72 overtime hours;
• Rest days. One rest day per week, normally Sunday, with rules on compensation if the employee is required to work on the rest day;
• Shift work. Rules on shift patterns and rest between shifts;
• Public holiday pay. Enhanced rules on compensation where work is required on a public holiday.

"Workman" is defined in section 2 of the Act and broadly captures manual workers — including those operating machinery, performing manual labour, or driving — irrespective of salary, subject to the salary threshold for Part IV.

Employees outside Part IV remain entitled to the general provisions of the Act (salary payment, leave, notice, retrenchment benefits) but their working-hours arrangements are governed by their contracts. Many employers contractually extend Part IV-style protections (overtime pay, rest days) to staff outside Part IV as a matter of policy; the Act does not require this.

Salary

The Employment Act regulates how and when salary is paid. Section 21 requires salary to be paid within seven days after the end of the salary period (usually one calendar month). On termination, outstanding salary must be paid on the last day of employment, or within three working days for termination at the employer's initiative.

Deductions from salary are tightly regulated. Permitted deductions include statutory CPF contributions, agreed deductions for accommodation or amenities provided by the employer, and deductions for absence from work. Disciplinary deductions are subject to limits — typically not exceeding 25 per cent of one month's salary, and only after due inquiry.

Annual leave

An employee who has been in continuous service for at least three months is entitled to paid annual leave, starting at seven days per year for the first year and increasing by one day per year up to a maximum of 14 days. Many contracts provide more generous leave (16 to 25 days is common for executives) and the contractual entitlement prevails where it is more favourable.

Public holidays

Employees are entitled to 11 paid public holidays per year, as gazetted under the Holidays Act 1998. Where a public holiday falls on a rest day, the next working day is the substitute public holiday. Work on a public holiday entitles the employee to extra pay (for Part IV employees) or to a substitute day off (for employees outside Part IV).

Sick leave

After at least three months of continuous service, employees are entitled to paid outpatient sick leave (up to 14 days per year) and paid hospitalisation leave (up to 60 days per year, inclusive of outpatient leave). Both must be supported by a medical certificate from a registered Singapore medical practitioner.

Family-related leave

Singapore's family-related leave framework is set out in the Child Development Co-Savings Act 2001 (paid maternity, paternity, shared parental, childcare, and adoption leave). These statutory entitlements are co-funded by the Government and are administered through MOM.

The Employment Act sets default notice periods where the contract is silent:

• Less than 26 weeks' service: one day;
• 26 weeks to less than two years: one week;
• Two years to less than five years: two weeks;
• Five years or more: four weeks.

Where the contract provides for a longer notice period (one, two, or three months is typical for managerial and executive roles), the contractual notice prevails. Either party may make payment in lieu of notice at the agreed daily or pro-rata rate.

Summary dismissal

Section 14 of the Employment Act permits an employer to dismiss an employee summarily for misconduct, but only after due inquiry. The inquiry must be procedurally fair: the employee must be informed of the allegations, given an opportunity to respond, and the decision must be supported by findings. The seniority and nature of the role affects the level of formality expected, but the basic structure — notice of allegations, opportunity to respond, documented decision — is constant.

Constructive dismissal

An employee who resigns in response to a fundamental breach of contract by the employer (such as a unilateral salary cut, demotion, or relocation in breach of contract) may treat the resignation as a constructive dismissal and pursue remedies as if dismissed by the employer. The Tripartite Guidelines on Wrongful Dismissal acknowledge this framework.

Wrongful dismissal

"Wrongful dismissal" is a defined concept under the Tripartite Guidelines on Wrongful Dismissal. A dismissal is wrongful where it is made on a prohibited discriminatory ground, to deprive the employee of statutory benefits, to punish the exercise of an employment right, or summarily without just cause. Claims are channelled through TADM mediation and the Employment Claims Tribunals (cap S$20,000, or S$30,000 after mediation), or for higher-value claims through the State Courts or the High Court.

Retrenchment is a particular form of termination — dismissal on the ground of redundancy or reorganisation. The Employment Act 1968 provides that an employee with at least two years of continuous service is entitled to retrenchment benefits, without prescribing the amount.

The Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment sets the soft-law benchmark of between two weeks' and one month's salary per year of service. Employers must also notify MOM where five or more employees are retrenched within any six-month period, via the mandatory retrenchment notification, within five working days of giving notice.

The interaction of the Employment Act 1968, the Tripartite Advisory, and the Workplace Fairness Act 2025 means that retrenchment exercises must be objectively justified, fairly selected, properly notified, and adequately supported. Detailed guidance on the retrenchment framework is set out separately on this site.

Re-employment after 63

The Retirement and Re-employment Act 1993 provides separate protections for older workers, with the statutory retirement age at 63 and the re-employment age at 68 (as at 2026), set to rise further. Employers must offer re-employment to eligible employees who turn 63, subject to the criteria set out in the Act.

Enforcement of the Employment Act runs principally through three channels: MOM administrative action, TADM mediation, and the Employment Claims Tribunals.

MOM administrative enforcement

MOM investigates complaints, conducts payroll audits, and issues compounded fines for offences such as failure to pay salary, failure to maintain employment records, and failure to issue itemised payslips and key employment terms (KETs) — both of which are mandatory under MOM's framework for employees covered by the Act.

TADM mediation

TADM provides mandatory mediation for salary-related claims and wrongful dismissal claims. Mediation is low-cost and conducted by trained officers. Many claims are resolved at this stage.

Employment Claims Tribunals

The ECT, established under the Employment Claims Act 2016, hears claims up to S$20,000, or S$30,000 after TADM mediation. Procedure is streamlined, hearings are typically completed within months, and Tribunal Magistrates' decisions are enforceable as State Courts judgments.

Higher courts

Claims exceeding the ECT cap, or involving complex restraint-of-trade injunctions, executive separation, or large bonus and equity disputes, proceed in the State Courts (up to S$250,000) or the General Division of the High Court under the Rules of Court 2021.

The general limitation period under the Limitation Act 1959 is six years for contractual claims. ECT-specific time limits are shorter — typically one year from the cause of action. Employees and employers should not delay obtaining advice.

This page is general information, not legal advice. Always consult a Singapore-qualified lawyer holding a current Practising Certificate before acting. For an initial directory enquiry, see Singapore employment lawyers, or browse find a lawyer.