Learn about employment contracts in Singapore thanks to Horizons’ up-to-date guide.
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Standard employment contracts in Singapore are for an indefinite term. Under such contracts employment is open-ended and will continue until one of the parties decides to terminate it. Indefinite-term employment contracts can be full-time or part-time.
A term contract is a fixed term contract of employment that terminates upon the expiry of a specific term or period unless renewed.
Indefinite-term and fixed-term contracts are the only types of employment contracts in Singapore.
Term contracts are the standard type of employment contract in Singapore. With no specified end date, they offer greater security to both the employer and the employee. The alternative contract is a fixed-term employment contract which is for a specific term.The former contract type offers greater flexibility for termination while termination of a fixed-term contract may be more difficult.
This will depend largely on the type of role an employee is being hired for. Hiring employees on a fixed term basis allows employers to benefit from labor and specialized skills when needed. Jobs that are seasonal in nature may benefit from fixed-term employees as can roles that require temporary cover such as maternity or absent workers. However, such contracts may be more difficult to terminate before expiry, leaving an employer liable to a pay-out. Indefinite-term contracts, on the other hand, can help to boost employee morale, productivity, and loyalty making them a more attractive choice for many employers.
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