Understanding employment law, tax obligations and the regulatory framework, as well as what protections are available for intellectual property, is important for any multinational company planning to expand into new jurisdictions.
This is the third in a three-part series of guides providing basic information on the legal framework for foreign investment and operations in Singapore:
Part 1 – Overview;
Part 2 – Establishing a business in Singapore;
Part 3 – Practical considerations.
Under Singapore law, the employer-employee relationship is regulated by a mixture of statutory law and common law.
In particular, the 1968 Employment Act (EA) is the main piece of employment legislation that regulates employer-employee relations in Singapore. Under the EA, employers are required to provide their employees with certain minimum statutory entitlements in relation to certain aspects of the employment relationship, such as salary payments and leave entitlements.
The EA applies generally to persons who have entered into or work under a contract of service. The exceptions to this are seafarers, domestic workers, and statutory board employees or civil servants.
Generally, employers are free to negotiate the employer-employee relationship by way of contract. In the case of employees who fall under the ambit of the EA, their employment contracts must comply with certain prescribed requirements under the EA.
Other statutes dealing with aspects of employment...
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