What are the key clauses in an employment contract?
An employment contract is an essential agreement that defines the terms and conditions governing the working relationship between an employer and an employee. It sets clear expectations, protects both parties’ rights, and ensures legal compliance throughout the employment period. In this article, we will explore the most important clauses typically found in an employment contract for you!
1. What is the definition of an employment contract?
An employment contract is an agreement outlining the duties and rights of both the employee and employer. It is a bilateral agreement based on elements such as an offer, acceptance, compensation, and mutual consent.
The contract is typically established for a specific duration in exchange for services and payment. It also ensures that both parties are competent to agree, meaning they have the legal capacity and full understanding of the terms.
Moreover, employment contracts can vary in nature. Some may be fixed-term and some might be full-time or part-time. Regardless of the type, a well-drafted employment contract is crucial for establishing a strong, professional relationship between the employer and the employee.
An employment contract is an agreement between an employee and an employer
2. What key clauses should your employment contract include?
There is no single standard employment contract when headhunting Singapore. The terms and conditions can change based on the company’s type of business, the job being offered, and its internal rules. However, 8 key clauses are important to include in most contracts.
2.1 Scope of works
This section outlines the tasks and responsibilities agreed upon by both the employer and the employee in the contract. The employee is required to personally carry out the assigned duties. Moreover, workers cannot delegate or transfer the work to another individual without the explicit consent of the employer.
2.2 Working time
Employees are expected to work no more than 8 hours per day and a maximum of 48 hours per week. The employer has the flexibility to organize the working schedule by day or by week. However, the company must inform the employee of these arrangements in advance. Additionally, the employer is responsible for limiting the employee’s exposure to hazardous conditions, in compliance with applicable National Technical Regulations and relevant labor laws.
Employees are expected to work no more than 8 hours per day
2.3 Rest time
Employees are entitled to a minimum of one full day off per week (24 continuous hours). The employer has the option to designate Sunday or any other specific day of the week as the rest day, which must be recorded in the company’s internal labor regulations.
If the work cycle does not allow for a weekly day off, the employer must ensure that employees receive an average of at least four days off per month. In addition, employees are entitled to paid leave on national holidays, including Tet and other public holidays by government regulations.
2.4 Salary
The employee’s salary is mutually agreed upon by both parties and stated clearly in the employment contract. The salary must be fair and non-discriminatory to ensure that employees of all genders receive equal pay for performing the same tasks.
Furthermore, the salary must not be lower than the minimum wage set by the government. For overtime work, the employee is entitled to at least 150% of the regular hourly wage for normal working days. 200% for overtime on weekly rest days and at least 300% for work done on public holidays, Tet holidays,…
2.5 Work location
Employees need to note the specified work location in the employment contract. Even labor laws allow for agreements on work locations outside the company’s headquarters, the agreed location must be documented in the contract. This ensures that the employee cannot be relocated to a different site without prior agreement.
2.6 Conditions of occupational safety and hygiene
Employers are obligated to provide employees with the necessary protective equipment to maintain safe and hygienic working conditions. This includes adhering to all laws and regulations related to occupational safety, workplace hygiene, and improving overall working conditions.
Employees are also required to follow these regulations. It includes internal company policies related to safety and hygiene. Additionally, all parties involved in labor and production must comply with laws concerning occupational safety, hygiene, and environmental protection.
Employees are also required to follow safety regulations
2.7 Social insurance
In the employment contract, the social insurance policy is designed to provide financial security and stability for employees and their families. It will be applied in various situations such as illness, maternity, retirement, death, work-related accidents, occupational diseases, job loss,….
The policy aims to gradually enhance and expand the range of benefits available. Both mandatory and voluntary social insurance schemes are available, depending on the type of employment and the company.
Hence, working with the best recruitment agency in Singapore can give job seekers valuable reassurance when searching for employment. This agency will link candidates with reputable employers and ensure that the job opportunities meet all legal standards.
2.8 Probationary agreement
The probationary period is a mutual agreement between the employer and the employee, outlining the rights and obligations of both parties during this trial phase. Either party has the right to terminate the probationary agreement without prior notice or compensation. In case the performance does not meet the expectations set forth.
In conclusion, a well-structured employment contract is essential for establishing a clear working relationship between the employer and the employee. By thoroughly understanding and agreeing on key clauses, both parties can ensure mutual trust and avoid misunderstandings. Ultimately, a comprehensive contract will lay the foundation for a successful and harmonious collaboration