Employer of Record Guide in 

Singapore

Annual Leave

Minimum Entitlement:

• 7 days after 12 months of service
• Increases to 14 days after 8 years of service
• Pro-rated for part-year service

Accrual Rules:

• Must be taken within 12 months of entitlement
• Maximum carry-over varies by company policy
• Must be paid out upon termination

Sick Leave

Paid Sick Leave:

• 14 days per year for outpatient treatment
• 60 days per year for hospitalisation
• Medical certificate required for absences over 3 days

Eligibility:

• Available after 3 months of employment
• Pro-rated based on length of service

Maternity Leave

Duration: 16 weeks (increased from 12 weeks in 2023)

• First 8 weeks: Fully paid by employer
• Remaining 8 weeks: Paid by government

Eligibility:

• Must be employed for at least 180 days
• Applies to both citizens and permanent residents

Paternity Leave

Duration: 2 weeks of paid paternity leave

• Can be taken within 16 weeks of child's birth
• Fully paid by government

Shared Parental Leave:

• Up to 4 weeks can be shared between parents
• Must be taken within first 12 months

Childcare Leave

Annual Entitlement:

• 6 days per year for each parent
• Children must be under 7 years old
• 2 days paid by employer, 4 days unpaid

Other Statutory Leave

Compassionate Leave:

• Not mandated by law but commonly provided
• Typically 1-3 days for immediate family bereavement

Marriage Leave:

• Not legally required
• Commonly provided as company benefit

Summary

Termination Types

Summary Dismissal (With Cause):

• Immediate termination without notice
• Serious misconduct required
• No compensation due

Termination Without Cause:

• Requires notice or payment in lieu
• Most common form of termination

Mutual Agreement:

• Both parties agree to end employment
• Terms negotiated between parties

Notice Period Requirements

Notice periods depend on length of service:

Payment in Lieu:

• Employers may pay salary instead of working notice
• Calculated based on basic salary plus allowances

Retrenchment Benefits

When terminating due to redundancy:

• 0-2 years service: 2 weeks' salary per year
• 2-5 years service: 2.5 weeks' salary per year
• 5+ years service: 3 weeks' salary per year

Note: These are statutory minimums; many employers provide more generous packages.

Final Pay Requirements

Timeline: Within 3 days of termination Components:

• Outstanding salary
• Unused annual leave
• Any other contractual payments

Probationary Periods

• Standard Duration: 3-6 months
• Notice Requirements: 1 day's notice during probation
• Performance Standards: Must be clearly communicated

National Public Holidays (2024)

Note: When public holidays fall on Sunday, the following Monday becomes a public holiday.

Holiday Pay Eligibility

To qualify for public holiday pay, employees must:

• Have worked at least 3 months
• Work the day before and after the holiday (unless on approved leave)
• Be entitled to the day off

Working on Public Holidays

Compensation:

• Non-shift workers: Extra day's salary plus substitute holiday
• Shift workers: Extra day's salary (no substitute day required)

Religious Observances

Singapore recognises major religious festivals as public holidays, reflecting its multicultural society:

• Chinese: Chinese New Year
• Muslim: Hari Raya Puasa, Hari Raya Haji
• Hindu: Deepavali
• Christian: Good Friday, Christmas Day
• Buddhist: Vesak Day

Required Documents for Employment

Employment Contract:

• Job title and description
• Salary and benefits
• Working hours and location
• Termination clauses
• Confidentiality agreements

Government Forms:

• IR8A: Employee details for tax purposes
• CPF registration: For social security contributions
• Work pass documentation: For foreign employees

Identity Verification:

• NRIC (for citizens/PRs)
• Passport and work pass (for foreigners)
• Educational certificates

Work Pass Requirements

Foreign Employee Categories:

• Employment Pass (EP): Professionals, managers, executives
• S Pass: Mid-skilled workers
• Work Permit: Lower-skilled workers in specific sectors

Application Process:

• Employer must apply before employee arrives
• Medical examination required
• Security bond may be required

Language Requirements

• Official Languages: English, Mandarin, Malay, Tamil
• Business Language: English is the primary working language
• Documentation: Employment contracts typically in English

Background Checks

Permitted Checks:

• Criminal record verification
• Employment history
• Educational qualifications
• Professional certifications

Restrictions:

• Must be job-relevant
• Require employee consent
• Subject to Personal Data Protection Act (PDPA)

Data Protection Compliance

Personal Data Protection Act (PDPA) Requirements:

• Obtain consent for data collection
• Notify employees of data usage
• Implement security measures
• Appoint Data Protection Officer if required

Onboarding Timeline

What the EOR Handles

Borderless AI manages:

• Employment contract preparation
• CPF registration and contributions
• Tax compliance and IR8A filing
• Work pass liaison (where applicable)
• PDPA compliance
• Local payroll processing

Worker Classification

Employee vs. Contractor Distinction: Singapore uses multiple tests to determine worker classification:

Employee Indicators:

• Works under employer's control and direction
• Integrated into business operations
• Receives regular salary and benefits
• Uses employer's equipment and facilities

Contractor Indicators:

• Operates independently
• Provides own tools and equipment
• Bears financial risk
• Can engage substitutes

Note: Misclassification can result in penalties and back-payment of CPF contributions.

Employment Pass Quotas

Dependency Ratio Ceilings (DRC):

• Limits on foreign worker ratios vary by industry
• Services: 40% foreign workers maximum
• Manufacturing: 60% foreign workers maximum
• Construction: Varies by sub-sector

Collective Agreements

Union Representation:

• About 25% of workforce is unionised
• Collective agreements override individual contracts
• Tripartite approach involving government, employers, unions

Key Sectors:

• Public service
• Transportation
• Healthcare
• Education

Cultural Considerations

Workplace Harmony:

• Emphasis on maintaining racial and religious harmony
• Respectful communication across cultural lines
• Accommodation for religious practices

Work-Life Balance:

• Growing emphasis on flexible work arrangements
• Government initiatives promoting family-friendly policies
• Mental health awareness increasing

Remote Work Framework

Flexible Work Arrangements:

• Supported by government initiatives
• Requires clear policies and agreements
• Must comply with employment law regardless of location

Cross-Border Considerations:

• Tax implications for remote work from other countries
• Work pass requirements still apply
• Data protection compliance across borders

Technology Requirements:

• Employer responsibility for necessary equipment
• Cybersecurity measures for remote access
• Performance management adaptations