Employment & HR

Contract of Employment

The contract carries the commercial and protective terms; the key employment terms carry the statutory particulars. Issue both. Where this contract contains all the prescribed particulars, it can serve as the key employment terms as well — but say so expressly and still issue it within fourteen days of the employee starting work.

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[HEADER — replace with your organisation’s letterhead, if used]

Between [COMPANY NAME] and [EMPLOYEE NAME]

THIS CONTRACT is made on [DATE]

BETWEEN:

(1)[COMPANY NAME], a company incorporated in Singapore with UEN [UEN], having its registered office at [ADDRESS] (the "Company"); and

(2)[EMPLOYEE NAME], holding [NRIC / FIN] number [NUMBER], residing at [ADDRESS] (the "Employee").

IT IS AGREED as follows:

1. Appointment

Item	Detail
Job title	[JOB TITLE]
Department	[DEPARTMENT]
Reporting to	[NAME], [DESIGNATION]
Commencement date	[DATE]
Nature of employment	[Permanent / Fixed term from ______ to ______]
Place of work	[ADDRESS] [/ hybrid — describe / remote — describe]
Working days and hours	[DAYS] days, [HOURS] hours, [TIME] to [TIME]
Rest day	[DAY]
Probation	[NUMBER] months
Notice period — during probation	[PERIOD]
Notice period — after confirmation	[PERIOD]
Employment Act Part IV coverage	[Covered / Not covered — see the notes]
Work pass required	[Not applicable / Employment Pass / S Pass / Work Permit]

1.1The Company appoints the Employee and the Employee accepts appointment on the terms of this contract.

1.2[Where a work pass is required] This contract is conditional on the Employee holding a valid work pass permitting employment with the Company in the stated role. If the pass is not granted, is revoked, expires, or the application is withdrawn or rejected, this contract terminates automatically on that date without notice or payment in lieu, and the Employee will have no claim against the Company other than for sums already accrued.

1.3This contract is further conditional on satisfactory verification of the Employee’s identity, qualifications and previous employment, and on the Employee confirming that no subsisting obligation to a former employer prevents or restricts the performance of the Employee’s duties.

2. Duties

Generated from www.helionerp.com1

6 more pages in the Word file

This is page 1 of the Word document, exactly as it appears when you open it. Fields shown like THIS are placeholders for you to complete.

Notes for use

These notes accompany the template and explain the drafting choices, the compliance points and the mistakes most often made with this document. They appear as a final page in the Word file, intended to be deleted before the document is executed.

Restrictive covenants are enforceable here — but only if reasonable

Singapore follows the common law doctrine of restraint of trade. A post-employment covenant is prima facie void and becomes enforceable only where the employer shows it protects a legitimate proprietary interest and is reasonable between the parties and in the public interest. Recognised legitimate interests include trade secrets and confidential information, trade connection with customers, and maintaining a stable and trained workforce. The burden is on the employer.

An over-broad covenant fails completely

Singapore courts will not rewrite an unreasonable restraint to make it enforceable, and will generally refuse to enforce only the part an employer says it wants. A clause covering a whole industry, or a global area, or an indefinite period, is likely to fail in its entirety — taking with it the protection the employer actually needed. Draft narrowly: the specific activity the employee performed, the geography where the employer actually trades, and the shortest period that protects the interest.

Match the covenant to the seniority of the role

It is far harder to justify restraining a junior employee with no access to confidential information or customer relationships. Applying an identical covenant across the whole workforce is the pattern most likely to be struck down, and it weakens the position for the senior roles where the restraint genuinely matters. Clause 7.5 is drafted to be deleted for junior roles — delete it.

Prefer non-solicitation and non-dealing over non-competition

A non-solicitation or non-dealing covenant protects the customer connection directly and is much more likely to be upheld than a blanket non-compete. Where the concern is customer loss rather than the employee working at all, use Clauses 7.2 and 7.3 and omit 7.5.

Tripartite guidelines are pending

The Ministry of Manpower has been developing tripartite guidelines on restrictive covenants since early 2024, with attention to lower-wage workers and to restraints unconnected to a genuine business interest. As at the time of writing they have not been published. They will not be legally binding but are expected to be persuasive in court and may affect how the Ministry views an employer’s practices. Review covenants when they are issued.

Garden leave is often the better tool

Garden leave keeps the employee bound by duties of fidelity and away from customers while still paid, and is far less vulnerable than a post-employment restraint. Note that a long garden leave period may itself be taken into account in assessing whether a subsequent restraint is reasonable — the two are cumulative in effect and courts look at the total period the employee is kept out of the market.

Make the work pass condition explicit

Clause 1.2 causes the contract to terminate automatically if the pass is refused, revoked or expires. Without it, an employer whose pass application fails may be left with a binding contract it cannot lawfully perform. This clause matters more in Singapore than almost anywhere else given the proportion of the workforce on passes.

Central Provident Fund is not payable for pass holders

Contributions are payable only for Singapore citizens and permanent residents. Making contributions for a pass holder is an offence. Where an employee becomes a permanent resident during employment, contributions begin from the date of status change, initially at graduated rates — update the payroll record on the day, not at year end.

Part IV coverage governs hours and overtime

Part IV of the Employment Act, which covers hours of work, rest days and overtime, applies to workmen and to other employees earning not more than the prescribed monthly basic salary, and does not apply to managers or executives. Overtime for covered employees is 1.5 times the hourly basic rate. Record coverage per role at the point of hire.

Due inquiry, and the limits on suspension

Dismissal for misconduct requires a due inquiry: the allegation put to the employee, a genuine chance to respond, and a decision-maker who is not the complainant. Suspension pending inquiry is limited to one week on not less than half salary, restored in full if misconduct is not established. Both limits are frequently exceeded and both are straightforward to comply with.

Discretionary bonuses can become contractual

A bonus described as discretionary but paid at a consistent level for several years may be argued to have become a term by custom. If the intention is genuine discretion, exercise it — vary the amount, document the assessment, and do not describe an effectively fixed payment as discretionary.

Termination payment timing has three different deadlines

Employer terminates: last day of employment. Employee resigns with notice: within three working days. Employee resigns without notice: within seven days. Applying one settlement timetable to all three means being late in the most common case.

Third party rights

Clause 9.5 excludes the Contracts (Rights of Third Parties) Act generally but preserves the ability of a related corporation to enforce confidentiality and restrictive covenants. Where the group structure means the employee has access to another entity’s information or customers, this is worth keeping.

Wrongful dismissal claims go to the Tribunal

Salary and wrongful dismissal disputes are mediated at the Tripartite Alliance for Dispute Management and, if unresolved, heard at the Employment Claims Tribunal, subject to claim limits. A contractual jurisdiction clause does not displace that route, and Clause 9.6 is drafted accordingly.

Current as of

Reflects Singapore law current as of {{DATE OF USE}}. Central Provident Fund rates and ceilings, Part IV thresholds, notice defaults, leave entitlements and the pending tripartite guidelines on restrictive covenants all change — have this contract reviewed by an employment adviser before use, and note that a major review of the Employment Act is under way with proposals expected in the second half of 2026.

This is a ready-to-use template provided for convenience. Laws and requirements change, and every situation is different — please have it reviewed by a qualified professional (a lawyer, corporate secretary, or accountant as relevant) before you rely on it.