6 Non-negotiable Terms HR Must Comply

Aug 3 2021
6 Non-negotiable Terms HR Must Comply

It is important for employers to know about compliance to avoid unnecessary disputes with their employees or related authorities. To help employers, we have curated useful information which serves as a refresher, and it can be a good reference for start-ups especially.







Have a written Contract or Key Employment Terms (KETs)


It is important to provide employees with their KETs in writing. With the written KETs, employees will have a better understanding of their employment terms and benefits. This will also foster trust between employers and employees, and minimise misunderstandings and disputes.

  • The Employment Act requires employers to issue written KETs to all employees who are hired on or after 1 April 2016, and who are employed for consecutively 14 days or more
  • KETs should be issued to employees within 14 days after the first day of employment
  • KETs may be issued as soft or hard copy



Keep record of employees’ work hours


Clocking work hours can bring a host of benefits to the employers and employees, and it is an essential step in the human resource administrative process. It allows employers to manage employees' work schedules, and record and track their work hours (including over-time work).

  • An employee can only work up to 72 overtime hours in a month
  • Contractual work hours (exclude break time and overtime) cannot exceed eight hours a day or 44 hours a week
  • Calculation of overtime work on rest days and public holidays (this is automated in the HRMS system)




Pay employees on time


According to the Singapore Employment Act, salaries and over-time pay must be paid on time. It is an offence not to pay your employees, full-time or part-time.

  • Salaries must be paid within seven working days after the stipulated salary disbursement period
  • Overtime pay must be made within 14 days after the end of the salary period
  • Part-time employees are also entitled to be paid for overtime work, just as full-time employees



Provide employees with itemised payslip


Since 1 April 2016, all employers must issue itemised pay slips to employees who are covered by the Employment Act. An itemised payslip may be issued as hard or soft copy.

This will minimise disputes over calculation errors, delayed pay issuance, and additional hours clocked in and paid.

  • An itemised payslip should include these items, whichever applicable.
  • Employers must keep a record of all pay slips issued for at least two years




Make statutory contributions


The Singapore Government mandates that employers and/or employees contribute to applicable ethnic-related and provident funds.*

*New CPF contribution rate from January 2022.




Generally the types of statutory contributions in Singapore are (subject to applicability & criteria):

  • Central Provident Fund (“CPF”)
  • Skill Development Levy (“SDL”)
  • Self-help Groups*
  • Foreign Workers Levy

*Chinese Development Assistance Council (“CDAC”) Fund, Eurasian Community Fund (“ECF”), Mosque Building and Mendaki Fund (“MBMF”), Singapore Indian Development Association (“SINDA”) Fund

• Employers must keep proper records and accounts of all employees' incomes for a period of five years



Ensure public holidays and leave entitlements are granted


Employees are entitled to paid non-work days, such as public holidays and annual leave.

  • Annual leave entitlement should not be less than seven days for all full-time employees
  • Part-time employees are also entitled to employment benefits, such as paid public holidays and annual leave
  • An extra work day’s salary or an off in lieu should be granted to employees should they be required to work on a non-work day, such as a public holiday

Assurance Health-Check

Additional assurance required? PayrollServe has a dedicated team to perform a health-check on your present or past year records. We examine the following areas where errors and omissions are likely to occur:

  • Monthly Payroll Records
  • Wage Classification
  • CPF Computation
  • Treatment of Taxable Items
  • IRAS Reporting and Tax Clearance
  • Review of Other Statutory Board Submissions

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