![]() ![]() If either party to an employment contract wishes to terminate an employment, terms stipulated in the employment contract must be followed. Whilst there are many reasons why the terms of an employment contract may be altered (the most common being a change in salary or role), for the sake of clarity and fairness, these amendments should be made in writing and signed off by both the employee and employer. Terms of a contract can only be varied once a contract is formed if both parties agree to the changes. Failure to comply with a MOM order will constitute a criminal offence punishable by fines up to $5000, imprisonment of up to 6 months, or both. Failure to do so could lead to a fine of $100-$200 per incident and/or a an order from the Ministry of Manpower to rectify the breach. Furthermore, employers must note that if the position in question falls under the Employment Act, and the employment is for 14 days or more, the Employment Act mandates that employers must disseminate a written list stipulating key employment terms. ![]() It is important to note that whilst it is not mandatory for employment contracts to be in writing, it is advisable so that both parties are fully informed of their respective obligations and rights. Repeat offenders could face fines of up to $10 000, up to 12 months in prison, or both. If an employment contract does not follow the Employment Act in Singapore even though the said employee is covered by the Act, the employer will be found guilty of a criminal offence which is punishable with a fine of up to $5000, up to six months in prison, or both. The Employment Act also sets out specific mandatory guidelines for employment contracts which include stipulations that salary payments be made at the minimum of once a month and that holiday in lieu are given should work on a public holiday be required. These terms may include salary, overtime, maternity, paternity, annual and medical leave as well as childcare. When drafting an employment contract employers must take care to ensure that in the scenario the position is covered by the Employment Act, all required terms stipulated in the Act are included in the employment contract. The Employment Act covers all persons including foreigners who work in Singapore with the exception of seamen, domestic workers and Government and statutory board employees. Whilst Singaporean law follows a freedom-of-contract approach where both parties are at liberty to include whatever legal terms they please, contracts must still adhere to the Employment Act. Both parties must enter into the contract voluntarily. The terms of the agreement may also be express or implied. This agreement can be made in writing or verbally. An employment contract is in essence, an agreement of a contract of service between a company and its potential employee. ![]()
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