Reviewing a job offer or employment contract? Let Caira spot the issues first.
Caira analyses Singapore employment contracts for non-compete validity, missing statutory entitlements, problematic IP assignment clauses and EA compliance — all within seconds, without any need for an appointment.
Analyse My Employment Contract with Caira →

1. The Legal Foundation: Employment Act (Cap. 91A)

Singapore’s employment framework is governed primarily by the Employment Act (Cap. 91A), which was significantly expanded in 2019 to cover all employees except public officers and domestic workers. This was a major shift — previously, only rank-and-file employees (those earning below SGD 2,600/month) were fully covered. From 1 April 2019, all employees (including PMETs — Professionals, Managers, Executives and Technicians) are covered by the core provisions.

The Employment Act sets out minimum statutory entitlements that cannot be contracted away. Any contract clause that provides less than what the Act requires is automatically void to the extent of the inconsistency — the statutory minimum applies regardless. This means you cannot, for example, agree in writing to waive your entitlement to annual leave or to accept payment below the minimum notice periods.

2. Key Employment Terms (KETs) — Mandatory Since April 2016

Under the Employment (Key Employment Terms) Regulations, employers must issue written Key Employment Terms (KETs) within 14 days of the employee starting work. Failure to issue KETs is a violation punishable by the Ministry of Manpower. The KETs must cover:

• Full name of employer and employee

• Job title, main duties and responsibilities

• Start date (and end date if fixed-term)

• Duration of probationary period (if any)

• Working hours and rest days

• Salary, payment frequency and date

• Annual leave entitlement

• Medical benefits (outpatient and hospitalisation)

• Other relevant entitlements (e.g. maternity, paternity)

• Notice period for termination by either party

3. Statutory Minimum Entitlements — EA Employees

⚠️ CPF Contributions — An Employer’s Mandatory Obligation: Employers must contribute to CPF for all Singapore Citizens and Permanent Residents earning more than SGD 50/month. The combined contribution rate is 37% of wages (employer 17% + employee 20%) for employees under 55, reducing progressively for older workers. Failure to make CPF contributions on time is a criminal offence, and employees can file a complaint with the CPF Board. Work Pass holders (EP, S-Pass) are not entitled to CPF contributions.

4. Restrictive Covenants — What Is and Isn’t Enforceable

Singapore courts apply the doctrine of restraint of trade: a restrictive covenant is only enforceable if it protects a legitimate proprietary interest and is reasonable in scope. Key principles:

• Non-compete clauses: Enforceable if reasonable in duration (typically 6–12 months), geographic scope (limited to where the employer actively operates), and the type of restricted activity. A blanket “no working in any technology company” clause would likely fail.

• Non-solicitation of clients: Generally upheld if the employee had direct access to clients and the restriction is time-limited (usually 12 months).

• Non-solicitation of staff: Similarly upheld if targeted at senior employees with specific influence over team members.

• Garden leave clauses: An employer may direct an employee to stay home during their notice period, continuing to pay salary. This is a legitimate alternative to a post-employment restrictive covenant.

Unlike some jurisdictions, Singapore courts do not require financial compensation to be paid in exchange for a restrictive covenant being valid. However, the reasonableness test still applies strictly.

Case Study: Wei Ling’s Employment Contract at a Singapore Fintech

Background: Wei Ling (29) receives a job offer as a Data Analyst at a Singapore fintech startup: SGD 6,500/month basic, 3-month probation, 12-month non-compete restricted to “the APAC financial technology sector”, and an IP assignment clause covering “all inventions made during or outside working hours.”

Issues identified by Caira:

• Overly broad non-compete: “All of APAC fintech” with no geographic limitation or specific role exclusion is arguably wider than necessary to protect the employer’s interests. Caira flagged this as potentially unenforceable and recommended negotiating it down to “Singapore and [specific country/client list]” with a 6-month duration.

• IP clause: “Outside working hours” language could capture personal projects Wei Ling develops at home unrelated to the employer’s business. Caira recommended adding a carve-out for inventions made outside working hours, without using company resources, and unrelated to the company’s business.

• Annual leave: The contract provided only 10 days leave in year 1. While above the statutory minimum of 7 days, Caira noted the contract didn’t specify whether unused leave could be carried over or encashed — an important gap for an employee who travels frequently.

• Outcome: Wei Ling used the Caira analysis to negotiate the IP clause carve-out and a narrower geographic scope for the non-compete. The employer agreed to both changes.

5. Employment Contract Template (Microsoft Word / PDF)

Copy the template below into Microsoft Word, complete all bracketed fields, print two copies and have both parties sign. Store a PDF copy for records. Note: this template must be supplemented with a signed KET document within 14 days of employment commencement.

📋 Copy Template → Paste into Word 📄 Copy Plain Text

This template is for permanent, full-time employment. Verify CPF contribution rates and statutory entitlements against current MOM guidelines before use.

EMPLOYMENT CONTRACT
<p>This Employment Contract is entered into on [Date] between:</p>
<p>Employer:<br>Company Name: [Full Company Name]<br>UEN No.: [UEN Number]<br>Registered Address: [Address]<br>Represented by: [Name and Designation]<br>(hereinafter "the Company")</p>
<p>Employee:<br>Full Name: [Full Legal Name]<br>NRIC/Passport No.: [Number]<br>Address: [Address]<br>Nationality: [Nationality / Singapore Citizen / PR / EP Holder]<br>(hereinafter "the Employee")</p>
<ol>
<li>
<p>COMMENCEMENT AND NATURE OF EMPLOYMENT<br>1.1 The Employee will commence employment with the Company on [Start Date].<br>1.2 The Employee is employed as [Job Title], reporting to [Name/Title of Reporting Manager].<br>1.3 The main duties and responsibilities of the role include: [Brief description of key duties].</p>
</li>
<li>
<p>PLACE OF WORK<br>2.1 The Employee's primary place of work shall be at [Address].<br>2.2 The Employee may be required to travel to other locations or work remotely as directed by the Company from time to time.</p>
</li>
<li>
<p>PROBATIONARY PERIOD<br>3.1 The Employee will serve a probationary period of [1/3/6] months from the commencement date.<br>3.2 Either party may terminate this contract during the probationary period with [X days] written notice.<br>3.3 At the end of the probationary period, employment will be confirmed in writing or the probation may be extended once for a further [X] months at the Company's discretion.</p>
</li>
<li>
<p>SALARY AND BENEFITS<br>4.1 The Employee's basic monthly salary shall be SGD [Amount] (Singapore Dollars [Amount in words]).<br>4.2 Salary shall be paid on or before the [last working day / 25th] of each month via bank transfer to the Employee's designated account.<br>4.3 [Variable Bonus: The Employee may be eligible for a discretionary annual bonus of up to [X] months' salary, subject to Company performance and individual performance assessment.]<br>4.4 [Annual increment reviews will take place in [Month] of each year.]</p>
</li>
<li>
<p>WORKING HOURS AND REST DAYS<br>5.1 Normal working hours are from [e.g., 9:00am to 6:00pm], Monday to Friday, with [one hour] for lunch.<br>5.2 The Employee may be required to work reasonable overtime as necessary for the business without additional payment, as this is reflected in the overall remuneration package.</p>
</li>
<li>
<p>ANNUAL AND OTHER LEAVE<br>6.1 Annual Leave: [X] days per calendar year (pro-rated in the year of joining/leaving).<br>6.2 Sick Leave: As per the Employment Act (up to 14 days outpatient leave and 60 days hospitalisation leave per year upon certification by a registered doctor).<br>6.3 Public Holidays: All Singapore gazetted public holidays.<br>6.4 Maternity/Paternity Leave: As stipulated under the Child Development Co-Savings Act.</p>
</li>
<li>
<p>CPF CONTRIBUTIONS<br>The Company shall make CPF contributions for Singapore Citizens and Permanent Residents in accordance with the CPF Act and prevailing CPF Board contribution rates.</p>
</li>
<li>
<p>CONFIDENTIALITY<br>The Employee agrees to keep confidential all proprietary information, trade secrets and business information of the Company, both during and after employment.</p>
</li>
<li>
<p>INTELLECTUAL PROPERTY<br>All inventions, works and developments created by the Employee within the scope of their employment, during working hours or using Company resources, shall vest in and belong to the Company.</p>
</li>
<li>
<p>RESTRICTIVE COVENANTS (if applicable)<br>10.1 Non-compete: For a period of [6/12] months following termination of employment, the Employee shall not be employed by or directly compete with the Company in [Singapore / specified geography] in the capacity of [specific roles / business area].<br>10.2 Non-solicitation of clients: For [12] months post-employment, the Employee shall not solicit clients with whom they had direct business dealings in the 12 months prior to leaving.<br>10.3 Non-solicitation of staff: For [12] months post-employment, the Employee shall not solicit or induce any Company employee to leave the Company.</p>
</li>
<li>
<p>NOTICE PERIOD<br>11.1 Following confirmation of employment, either party may terminate this contract by giving [1 month / X weeks] written notice, or by paying salary in lieu of notice.<br>11.2 The Company reserves the right to terminate for cause (gross misconduct, dishonesty, serious breach of contract) without notice.</p>
</li>
<li>
<p>GOVERNING LAW<br>This agreement shall be governed by and construed in accordance with the laws of Singapore.</p>
</li>
</ol>
<p>Signed by the Employer:                          Signed by the Employee:</p>
<hr>
<p>[Name and Designation]                          [Employee Name]<br>Date: ____________________________    Date: ____________________________</p>

6. Frequently Asked Questions (FAQ)

Q: Am I protected by the Employment Act if I earn above SGD 4,500/month?
A: Yes — since the 2019 expansion, all employees (including high earners) are protected by the Employment Act’s core provisions. However, certain protections like overtime pay and rest day pay only apply to employees earning up to SGD 2,600/month basic (formerly SGD 2,600 in 2021, limits may be updated). Check the MOM website for current thresholds. The protection against wrongful dismissal applies to all employees covered by the Act.

Q: Can my employer deduct salary without my consent?
A: Salary deductions are strictly controlled under the Employment Act. Permissible deductions include CPF contributions, income tax, authorised loan repayments to the employer, and agreed deductions for damage or loss. Arbitrary deductions are illegal, and the total of permissible deductions (other than CPF) cannot exceed 50% of one month’s salary.

Q: Is a non-compete clause in my contract automatically enforceable?
A: No. In Singapore, a non-compete clause is only enforceable if it passes the restraint of trade reasonableness test. Courts will assess whether it genuinely protects a legitimate proprietary interest (e.g., confidential client relationships, trade secrets) and whether its scope (duration, geography, activity) is proportionate to that interest. Overly broad clauses are routinely struck down or modified by the courts.

Q: What can I do if my employer fails to pay my salary on time?
A: Under the Employment Act, salary must be paid within 7 days after the end of the salary period. If your employer is late, you can file a salary claim with the Employment Claims Tribunal (ECT) via iECT online. Claims of up to SGD 20,000 (or SGD 30,000 with union assistance) can be resolved through this cost-effective tribunal without complex litigation.

Official Sources

• Employment Act (Cap. 91A) — Singapore Statutes Online: sso.agc.gov.sg

• MOM — Key Employment Terms: mom.gov.sg

• CPF Board — Employer Obligations: cpf.gov.sg

• Employment Claims Tribunal: ecttribunal.gov.sg

This article is based on Singapore law as of 2026 and is provided for informational purposes only. Use Caira to analyse your specific employment contract before signing.