What should an employment contract settle?
Record the job, reporting line, working arrangements, salary, benefits, variable pay, leave, probation and notice in language that matches how the role will actually operate. Policies and handbooks should align with the signed terms.
The Employment Act supplies statutory protections within its scope. A contract can add rights, but a term that is less favourable than an applicable statutory minimum may not achieve its intended effect.
Employment contracts
How is the employment contract being used?
The practical question changes according to whether the contract is being offered, renegotiated or relied on in a dispute. Identify the clause and the outcome you need.
- Employee
- Identify the proposed term, change or obligation causing concern and any signing deadline.
- Employer
- Explain the role, intended responsibilities and the commercial interest a clause should address.
- Documents
- Gather the contract, amendments, incorporated policies and relevant incentive terms.
- Current dispute
- Connect the wording to the conduct, payments or communications now in question.
Which key employment terms must be recorded?
MOM lists required key employment terms for employees within the statutory criteria, including names, duties, start date, work arrangements, salary components, leave, medical benefits, probation and notice.
Use the MOM list as a compliance floor. Add deal-specific terms for authority, incentives, confidentiality, intellectual property, data, expenses and reporting.
How should bonus and commission terms work?
State whether payment is contractual, formula-based or discretionary; define measurement, approval, payment date and treatment on notice or termination.
A discretion should still be exercised consistently with the contract and law. Records should show targets, changes, results and the reason for the decision.
How should performance and misconduct be handled?
Define expectations and connect the contract to applicable policies. Keep contemporaneous records of feedback, support, warnings, investigations and decisions.
MOM states that an employer terminating for misconduct must hold an inquiry before disciplinary action. The process and evidence matter.
What protection can apply after employment?
Confidentiality, intellectual property, non-solicitation and restraint clauses protect different interests. Their scope should reflect the role, information and relationships actually at risk.
A broad restraint is not automatically effective because it appears in a signed contract. Duration, geography, activity and legitimate interest require careful review.
How should termination be documented?
The contract should state notice, salary in lieu, leave, garden leave, handover, property return, access removal and final payments. MOM requires notices of termination to be in writing.
The reason and process may matter where misconduct, poor performance, redundancy, discrimination or retaliation is alleged.
Where can a dispute be addressed?
Depending on the issue, routes may include internal resolution, TADM, the Employment Claims Tribunals, negotiation or civil proceedings. Jurisdiction and time limits should be checked promptly.
Evidence should be organised by issue: contract formation, pay, performance, investigation, termination and post-employment conduct.
How can Justin Chan Chambers help?
A drafting or review exercise can align the contract with the role and the employer’s policies. In a dispute, the review can identify the controlling terms, evidence and available forum.
Provide the signed contract, policies, pay records, incentive documents, material correspondence and any notice or investigation papers.
What should you prepare for an initial review?
- Signed contract and amendments
- Handbook, policies and job description
- Payslips, bonus and commission records
- Performance and investigation records
- Notice, termination and handover documents
- Confidentiality, IP and restraint material
Frequently asked questions
MOM explains that a contract may be written, verbal, express or implied, while written key employment terms are required for employees who meet the statutory criteria. Written terms reduce uncertainty.
MOM states that employers cannot change terms and conditions without the employee’s consent. Proposed changes should be negotiated and documented.
Yes. MOM states that notice of termination by either party must be in writing.
No. The wording, scheme rules, communications and past implementation determine whether a payment is contractual, formula-based or subject to discretion.
No. Their effect depends on the legitimate interest protected and whether the restriction is reasonable in scope.
The route depends on the claim. TADM and the Employment Claims Tribunals address specified employment claims; other contractual or urgent matters may follow different processes.
Primary Singapore sources
The following official sources were checked on 18 September 2026. They provide general information and may change.
Discuss the clause and its practical effect
Tell us whether the contract is proposed or signed, and whether you are the employer or employee. Bring relevant policies, amendments and bonus, commission or termination correspondence. Statutory coverage and enforceability require fact-specific advice.