Employment Act Unpacked: What every worker needs to know

Did you know that your salary must be paid within seven days after the pay period ends? You also need to get at least seven to 14 days of annual leave each year. And you can't be fired on the spot unless you’ve done something wrong or broken company rules.

Well, if you don’t know these common rules, read on to understand your basic rights in the workplace. After all, if you are hustling for many hours a week, you’ll want to make sure you’re treated right.

These rules are covered under the Employment Act (EA), Singapore’s main labour law that oversees the rights and duties of all employees and employers in the country. Think of it as the minimum terms and conditions of your employment, including your salary, working hours, leave entitlements, and termination.

Enacted in 1968, the law has been protecting workers for nearly 60 years now. Over the years, it has been reviewed by Singapore’s tripartite partners, comprising the Government, NTUC and the Singapore National Employers Federation (SNEF).

As the workers’ representative, NTUC is determined to ensure the law’s continued relevancy, clarity and importance in protecting workers while preserving flexibility for employers. NTUC Members of Parliament, most prominently Patrick Tay, have been calling for updates throughout the years due to workforce changes, such as trends, demographics, and economic situations.

Mr Tay, who is also the Assistant Secretary-General of the trade union body, proposed changes to remove the $4,500 salary cap for PMEs, improve how workplace problems are settled, and include proper measures to handle dismissals.

Today, the EA serves to safeguard all workers, including PMEs earning $4,500 and above. It also has an improved problem-solving framework.

Ready to learn more about your rights at work? Here’s what you should know:

1. Who it Covers

The EA applies to all salaried workers, including PMEs, part-time, temporary, and contract employees. The law complements your employment contract and/or employee handbook for more holistic protection.

2. Employment Contract

Your employer must give you a written contract within 14 days of being hired. This contract should include details about your salary, working hours, leave, and termination. It protects you by helping avoid misunderstandings about these basic terms and making clear what you are entitled to.

3. Leave Entitlements

Under the law, if you’ve served the company for three months, you should be getting at least seven days of paid leave. After that, you’ll earn one extra day of leave for each year you work, up to a maximum of 14 days. If your employer offers you more leave than this, you can take it!

If you fall ill, you are entitled to medical leave at the three-and-six-month points of employment.  Your employer must pay for your medical expenses if a Government or company-approved doctor issues the MC.

• Three months: Five days of outpatient leave; up to 14 days of hospitalisation leave.
• Six months: 14 days outpatient leave; 60 days of hospitalisation leave annually. 

You should already know that you don’t have to work on the 11 public holidays in a year. However, what you may not know is this: If you work on a public holiday, or if the holiday falls on your rest day, you should be compensated with either extra pay or a day off.

4. Salary & Payslips

Your employer must pay your salary within seven days after the salary cycle. So, if payday is the 30th of every month, you should be receiving it by the fifth or sixth of next month.

They must also give you an itemised payslip within three days of your payday. This payslip should show details like your basic wage, allowances, deductions, and nett pay.

Always check your deductions, as these should not exceed 50 per cent of your salary. Permitted deductions include CPF and loans. 

5. Termination & Wrongful Dismissal

If your company has asked you to leave, make sure it complies with the rules in your employment contract. According to the law, your employer can choose to pay you for the notice period instead of requiring you to work it.

However, if you think you’ve been wrongfully dismissed without a proper reason, you can take it up with the Tripartite Alliance for Dispute Management (TADM) or the Employment Claims Tribunal (ECT).

Look out for the next review

Amidst the changing workforce profile, evolving types of work, and challenging economic landscape, the tripartite partners have formed a workgroup to review the current Employment Act.

The Tripartite Workgroup (TWG) is led by Manpower Ministry (MOM) Permanent Secretary Ng Chee Khern, NTUC Deputy Secretary-General Cham Hui Fong, and Singapore National Employers Federation Vice President Kuah Boon Wee. Workgroup members include union, employer, and senior government representatives.

The union team comprises Mr Tay, Union of Power and Gas Employees General Secretary Abdul Samad Abdul Wahab, Union of Security Employees General Secretary Raymond Chin, NTUC Economic Policy Director Shirley Loo, and Tripartite Alliance for Dispute Management Co-General Manager Toh Hwee Tin.

The Tripartite Workgroup will focus on enhancing the current Employment Act to protect different types of workers.

Through consultations with key stakeholders, including employers and employees, the workgroup aims to develop a set of recommendations by the second half of 2026.

On 4 August 2025, the TWG held its first meeting. It was decided that a key focus would be providing adequate protection for different types of workers while reducing regulatory and compliance costs for employers.

According to the Manpower Ministry’s Mr Ng, the goal is to make sure that the law stays relevant as the labour environment changes, including shifts in the workforce and the economy.

On the workers’ side, NTUC’s Ms Cham emphasised that the proposed changes to the law will greatly improve protection for all workers, especially PMEs, whose jobs have changed and may be influenced by social, economic, and technological factors.

From the employers’ perspective, SNEF’s Mr Kuah highlighted that this review is important because it impacts many businesses and must be reflective of changing needs.