Continuous Contract Of Employment Template for Singapore

A Continuous Contract of Employment is a legally binding agreement that establishes an ongoing employment relationship between an employer and employee in Singapore. Unlike fixed-term contracts, this document creates permanent employment arrangements without predetermined end dates, providing job security for employees while offering employers flexibility to build long-term teams. Under Singapore's Employment Act, employers must provide Key Employment Terms (KETs) within 14 days of employment commencement, making this contract essential for legal compliance.

When do you need this document?

You need a Continuous Contract of Employment when hiring permanent staff in Singapore, whether they are local citizens, permanent residents, or foreign workers on valid work passes. This contract is mandatory for all employees earning $4,500 or less per month under the Employment Act, though higher-paid employees also benefit from clear contractual terms. You'll also need this document when converting temporary or contract workers to permanent positions, promoting employees to new permanent roles, or when existing employment agreements require updates to reflect current Singapore employment legislation. Companies expanding into Singapore must use these contracts to ensure compliance with local labour laws from day one of operations.

Key legal considerations

Your contract must include all mandatory Key Employment Terms as specified under the Employment Act, including job title, main duties, salary amount and payment frequency, working hours and overtime arrangements, and leave entitlements. Pay special attention to probationary periods, which cannot exceed three months for non-workmen or six months for workmen under Singapore law. Include clear termination clauses specifying notice periods, which must comply with Employment Act minimums: one day for employees with less than 26 weeks of service, one week for 26 weeks to two years, and two weeks for two to five years of service. Ensure your contract addresses intellectual property rights, confidentiality obligations, and post-employment restraints, keeping in mind that non-compete clauses must be reasonable in scope, duration, and geographical coverage to be enforceable in Singapore courts.

Legal requirements in Singapore

Singapore's Employment Act mandates specific provisions that must appear in your contract, including maximum working hours of 44 per week, overtime compensation at 1.5 times the basic rate, and minimum rest day entitlements. Your contract must comply with Central Provident Fund (CPF) contribution requirements for eligible employees, typically 20% employer and 20% employee contributions. Include provisions for statutory leave entitlements: seven to 14 days annual leave depending on service length, 14 days paid sick leave, and maternity/paternity leave as per the Child Development Co-Savings Act. For foreign employees, ensure compliance with the Employment of Foreign Manpower Act, including work pass validity periods and employer obligations. The contract must also address workplace safety responsibilities under the Workplace Safety and Health Act and data protection obligations under the Personal Data Protection Act when handling employee information.