Introduction 

Singapore remains one of the most attractive markets for global businesses - a gateway to Asia with a pro-business environment, world-class infrastructure, and a highly skilled workforce. But while setting up shop in Singapore may feel refreshingly efficient compared to other regions, overlooking local employment law can put businesses at serious risk.

Singapore’s Employment Act has seen several updates in recent years - particularly around fair treatment, working hours, and termination rights. While it remains employer-friendly in many respects, the rules are clear, and enforcement is increasing. As global expansion accelerates and remote hiring becomes the norm, HR teams must be fully briefed on the basics.

Quick Tips

• The Employment Act applies to most employees earning under SGD $4,500/month (and all manual workers).

• Probation is common and should be defined in writing - typically three to six months.

• Termination must follow contractual notice periods or statutory minimums (usually 1 week to 1 month).

• Annual leave minimum is 7 days after 1 year of service - but most employers offer more.

• Foreign workers require proper work passes - hiring without one can lead to jail time and fines.

Clarity on Coverage 

Not every employee in Singapore is covered under the Employment Act - but that doesn’t mean they’re without protection. The Act covers core terms such as hours, leave, and termination for most local employees earning below SGD $4,500/month. For executives or high earners, contractual terms take precedence, but employers are still bound by common law and fair dismissal practices.

The Ministry of Manpower (MOM) has made it clear that regardless of coverage, all workers must be treated fairly - and this includes during redundancies, reassignments, and grievance handling. For example, you must provide reasons for dismissal and allow employees the chance to respond - even outside the scope of the Act.

At ThinkGlobal HR, we often review contracts to ensure senior hires and expatriates still receive clarity and legal assurance - especially in areas like bonuses, data privacy, and non-compete clauses which are more strictly interpreted in Singapore than in some other jurisdictions.

What to Know About Termination and Resignation 

Singapore’s termination rules are straightforward - but failing to document your process or apply it fairly can lead to challenges. A common pitfall is confusion over whether a resignation during probation requires notice. It does - and it should be clearly stated in the contract.

Another nuance? If you terminate an employee without notice, you must provide salary in lieu unless it’s for misconduct (which must be investigated and proven). Disputes that reach the Tripartite Alliance for Dispute Management (TADM) can become costly - especially for foreign companies unaware of these obligations.

I once advised a UK firm whose local manager dismissed a junior employee by WhatsApp. It breached both the Employment Act and local cultural norms, leading to reputational damage. We helped them review their HR policies, retrain managers, and formalise processes to align with Singapore standards.

Work Passes and Foreign Talent: No Room for Error 

Hiring foreign nationals in Singapore requires specific work passes - including Employment Pass (EP), S Pass, and Work Permits. Each has its own criteria, salary thresholds, and quota restrictions. The Ministry of Manpower regularly audits employers and expects accurate records of local versus foreign hires.

It’s not just a formality. Employers caught hiring without valid passes face up to 2 years’ imprisonment and fines up to SGD $20,000 per offence.

When I worked with a scaling tech firm hiring developers from India and Indonesia, we helped them streamline EP applications and align job descriptions with approved occupations. We also advised on fair remuneration structures to pass the Fair Consideration Framework (FCF) - a critical factor for approvals.

If you’re expanding into Singapore or hiring remotely from there, get your employment terms and immigration compliance right from the outset. It’s the one area you can’t afford to get wrong.

Final Thoughts 

Singapore offers huge opportunity - but labour law compliance must be treated as a strategic priority, not an afterthought. Contracts, benefits, and processes must be locally appropriate, culturally sensitive, and legally sound.

What’s next for your global people strategy? 

Book a free compliance check-in or HR audit with ThinkGlobal HR. Whether you’re hiring your first employee in Singapore or scaling a remote team across Asia, we’ll help you get it right - with practical, compliant, and human-centred support that grows with your business.