A Brief Guide to Human Resource Policies in Singapore

A Brief Guide to Human Resource Policies in Singapore

Okay. You want to start a business in Singapore. You’ve gotten over the registration requirements. You’ve even had your company address set out. So, what’s next? Where do you go from there? What comes after registering and securing a venue? Hiring right? Before you start hiring people to work for your company. You have to first get familiar with the human resource policies that govern Singapore. You have to internalise, like the back of your hand, the contents of the Singapore Employment Act. But, don’t worry. We’ve got you covered. We’ll walk you through it in the most basic explanation we can muster. Discover the consequences you might face if you fail to comply. And last but not the least how you can integrate these human resource policies to your company.

Human Resource Policies

Meet Singapore’s Employment Act

Singapore’s Employment Act is the ruling body you need to refer to when it comes to dealing with your workers. Human resource in Singapore is a big deal; the government imposes heavy penalties on companies that don’t follow the Employment Act. You should invest in good, quality human resource management in Singapore.

Let’s begin dissecting the Employment Act by finding out whose its for. Singapore’s employment act is for the following individuals:

  • a full-time employee
  • part-time employee
  • a temporary worker
  • a contractual worker

The people not covered in the Act are:

  • Managers or executives with salaries per month of more than $4,500
  • Seafarers
  • Domestic workers
  • Statutory board member
  • civil servants

According to the amendments made to the Singapore Employment Act, you will be required to make your employees records, keep those records safe and hand-out “Key employment terms” or KETs to your employees. Aside from this, you will also be tasked to give itemised pay slips to your workers. Failure to comply with these requirements will incur administrative penalties.

Key Employment Terms (KETs)

You are required to issue a KETs within 14 days from the start of employment. It can either be in soft copy or hard copy. And a KET must include the following:

  • Your complete name
  • Your worker’s complete name
  • His or her job title, duties and responsibilities
  • Date when he or she began working for the company
  • How long he or she will be employed (this is applicable if your employee is under a fixed term contract)
  • His or her work arrangement: Daily working hours, number of working days, rest day
  • The time of salary or salary period
  • Basic information about his or her salary (e.g. hourly rates, daily rates)
  • Allowances and deductions
  • Overtime pay, for non-PMEs, and how much will they get paid for overtime
  • Bonuses they might get and incentives
  • The type of leave they can avail: like annual leave, an outpatient sick leave, a hospitalisation leave, a maternity leave and even childcare leave
  • Their Medical benefits like their insurance,  medical benefits, and even dental benefits
  • Their Probation period as well as the notice period

For a more comprehensive guide to the requirements, you need to submit visit this page.

The Policies

1. Hiring Process

In recruiting employees, you must base your decision on merits, meaning by the applicant’s skills, experience, and ability to do the job. It must never be according to age, race, gender, religion, marital status, disabilities and family responsibilities.

2. Treatment of Employees

You must treat your employees with respect and strive to put progressive human resource policies, and human resource management. Give them equal opportunities for training and development. You must help them achieve their fullest capabilities and potentials while within your company. And you must reward your employees fairly according to what they have done, their ability and overall performance.

For more information visit these pages: Ministry of Manpower Toolkit and Singapore’s Employment Act.

Human resource policies such as the hr policies and procedures of big companies situated in Singapore like Singtel, Changi Airport Group, Citibank, and CPG Corporation all make use of great human resource management.

Final Thoughts:

As an employer, your greatest asset is not your facilities or high-tech machinery. It’s your employees. So, implementing human resource policies that improve their stay if your company should be your biggest goal.