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Home / Business / What is an employment contract? What should you know about the termination and breach of employment contract in Singapore?

What is an employment contract? What should you know about the termination and breach of employment contract in Singapore?

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An employment contract is an agreement between employer and employee, which maintains the relationship between them and is obligated by the law. This contract may not be fully written. It may be partially oral or partially written. Many things need to consider before making a contract. For both employee and employer, it is necessary to read the contract carefully. Let us talk about the view of the court on this act and breach of employment contract singapore.

View of Singapore court on the employment contract.

Employment act says employers need to make salary payments at least once a month. Employers also need to pay the employee if they work on a public holiday. In Singapore, the employment act follows the freedom of contract approach. It means both the parties are free to introduce any new term into a contract unless not illegal.

What is the term an employer keeps in mind before drafting a contract?

Employers need to include:

  1. Salary

How much money is paid to an employee by the employer for their work is its salary. It is based on their work. It is paid based on days, months, or any custom amount of time. It also paid for the amount of work.

  1. Qualification and requirements.

It includes how qualified the employee is needed for the work. For different posts, qualification criteria for the employees differ before accepting the contract employer can verify all the qualifications by themself. If any of them are not valid, employers have the right to terminate the contract; this should be mentioned.

There are also beginning of work, schedule, job scope, number of working hours, all types of leaves, and termination. Apart from these, employers can further add anything according to the employee requirements.

Employment act in Singapore covers salary, overtime, leaves, annual, medical Maternity/paternity, childcare, national service.

Breach of employment contract in Singapore.

Employee or employer both terminate the contract under some rule. Like in Singapore, the employee works on a probationary period; only after working the whole probationary period can they be permanent. If any of them are not satisfied with their work, they can leave it.

Breach of contract

  • By employee

The employer has the right to terminate the employment contract if the employee breaches it. Contract breached when the employee absences from the work for more than two consecutive days. Employers can terminate the contract without giving notice or paying a salary.

  • By employer
  • Same as the employer, employees also have the right to terminate the contract. Suppose employees are breached when the employer fails to pay the employee’s salary with the first seven days.
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