Non Fixed Term Contract Template for Singapore
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What is a Non Fixed Term Contract?
The Non Fixed Term Contract is widely used in Singapore for permanent employment relationships. It's designed to comply with Singapore's Employment Act and related employment legislation, providing a comprehensive framework for ongoing employment. This contract type is particularly suitable when companies wish to establish long-term employment relationships without specifying an end date. The document covers essential elements including remuneration, working conditions, benefits, and termination provisions, while maintaining flexibility for both parties. It's structured to accommodate various roles and seniority levels while ensuring compliance with local employment laws and regulations.
About the Non Fixed Term Contract
A Non Fixed Term Contract is Singapore's standard framework for permanent employment relationships, designed to comply with the Employment Act and related legislation. Unlike fixed-term contracts that specify an end date, this agreement establishes an ongoing employment relationship that continues until terminated by either party according to statutory notice requirements. You'll need this document when hiring employees for permanent positions, ensuring both legal compliance and clarity of employment terms.
When do you need this document?
You should use a Non Fixed Term Contract when establishing permanent employment relationships in Singapore. This includes hiring full-time employees for ongoing roles, converting temporary staff to permanent positions, or formalising employment arrangements that were previously informal. The contract is essential for both local and foreign employees, providing legal protection and clarity around employment terms. Whether you're a startup hiring your first employee or an established company expanding your workforce, this contract ensures compliance with Singapore's employment laws while protecting both parties' interests.
Key legal considerations
Your contract must include mandatory provisions required under the Employment Act, including basic salary, working hours, rest days, and annual leave entitlements. CPF contributions are compulsory for both employer and employee, with rates varying based on age and residency status. The contract should clearly define probationary periods, which cannot exceed three months for most positions. Notice periods for termination must comply with statutory minimums, ranging from one day to four weeks depending on length of service. You must also address workplace safety obligations under the Workplace Safety and Health Act, and ensure data protection compliance under the Personal Data Protection Act when handling employee information.
Legal requirements in Singapore
Under Singapore law, your Non Fixed Term Contract must comply with the Employment Act's minimum standards, which apply to all employees earning up to $4,500 monthly or those in manual labour regardless of salary. The contract must specify working hours, overtime rates, and rest day entitlements as mandated by law. Annual leave provisions must meet statutory minimums of seven to fourteen days depending on length of service. For foreign employees, you must ensure compliance with the Employment of Foreign Manpower Act and maintain valid work permits. The contract should include dispute resolution clauses referencing the Employment Claims Tribunals, which handle employment-related disputes efficiently. Additionally, salary payments must be made at least monthly, and detailed employment records must be maintained for inspection by the Ministry of Manpower.
GOVERNING LAW
Applicable law
This Non Fixed Term Contract is drafted to comply with Singapore law. Key legislation includes:
Employment Claims Act: Legislation governing employment disputes and claims resolution in Singapore.
Industrial Relations Act: Regulates employer-employee relationships and union matters in Singapore.
MOM Leave Entitlements: Statutory requirements for annual leave, sick leave, and other leave types.
MOM Public Holidays Policy: Regulations regarding public holiday entitlements and compensation.
Salary Payment Regulations: Rules governing salary payment timing, methods, and requirements.
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