Employment Practices To Implement And Streamline After Opening A Business In Singapore

The next step one usually undertakes after opening a business in Singapore would be to prepare for business operations. In recent years, the practice of applying for virtual office address services has become quite a popular option for business owners. But as business grows, so does the difficulty in managing by oneself. There comes a time where business owners will have to decide on hiring employees.


To ensure that this can be accomplished successfully while remaining compliant to requirements from governing sectors, here is what to be aware of:


Employment Act


Before proceeding on, business owners should be aware of the Employment Act- the main labour law of Singapore. The Employment Act contains legal terms for employees at work, outlining the responsibilities and obligations that employers should fulfill.  The Act covers all local and foreign employees that are working under contracts of service with employers.


It is also a compulsory requirement for all employers to create and keep employee records. They are also obligated to offer written records of the Key Employment Terms as well as produce itemised pay slips.


While it can seem tedious, especially when one has limited time to focus on major business processes after singapore company formation, it is a necessary practise. By keeping in compliance with the Act’s requirements, employers are establishing essentially reducing the frequency of misunderstandings and disputes.



Two of the most common leaves taken by employees would be sick leave and annual leave. Employees are entitled to both paid outpatient as well as hospitalisation sick leave after working for a minimum of 3 months with the employer. Employees are entitled to paid sick leave too if they have made attempts to inform the employer within 48 hours of their absence and submit a medical certificate (MC) after they return to work. Employees who have been working for the same employer for over 6 months should receive full entitlement, and their sick leave should not be pro-rated.


All other medical cost reimbursements will depend on medical benefits discussed within the employment contract or the company union. Employees who are on paid hospitalisation leave will also be paid gross payment rates and employees who are on paid outpatient sick leave should also be able to receive the same treatment, excluding shift allowance.

Central Provident Fund (CPF)


Designed and implemented as a compulsory social security savings scheme, CPF is funded by both employer and employee monthly contributions. These CPF contributions are payable for both Singapore citizens and permanent residents who are currently working under a contract of service in Singapore.

Employers are required to make contributions with reference to monthly rates that are stated within the CPF act. The deadline for CPF contributions are usually set at the end of the month. Employers are offered a grace period of up to 14 days to make the contribution.

These are the major employment practices business owners should implement after opening a business in singapore. With this in mind, the process of employing is made easy.

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