“Small businesses, in particular, may find it challenging to absorb these additional costs,” says employment lawyer

Singapore’s Employment Act is set for a comprehensive overhaul, with significant changes anticipated in key areas such as leave entitlements, salary thresholds, rest day protections, employment transfers and dismissal procedures.

According to Peter Doraisamy, managing partner at PD Legal, these adjustments are likely to reshape employer obligations and worker rights in material ways.

One of the more visible changes is expected to be an increase in statutory leave entitlements, with the rising emphasis on employee well-being and work-life balance being drivers behind this development.

“The review of the Employment Act is expected to result in several key changes that will have meaningful implications for employers and employees in Singapore,” he says.

The salary thresholds under Part IV of the Act—currently set at $4,500 for workmen and $2,600 for non-workmen—are also on the chopping block.

“As median wages have risen, these thresholds may no longer reflect the realities of the labour market,” he says.

Adjusting these limits would extend protections such as rest days, overtime pay and limits on working hours to a broader segment of the workforce.

Termination transparency and the push to modernize employment protections

Employers may also face increased regulatory scrutiny in how they handle dismissals. The government is considering requiring employers to state...

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