{"id":5894,"date":"2023-05-09T15:00:00","date_gmt":"2023-05-09T07:00:00","guid":{"rendered":"https:\/\/dollarsandsense.sg\/business\/?p=5894"},"modified":"2023-09-29T14:35:39","modified_gmt":"2023-09-29T06:35:39","slug":"minimum-requirements-key-employment-terms-kets-on-employees-contracts","status":"publish","type":"post","link":"https:\/\/dollarsandsense.sg\/business\/minimum-requirements-key-employment-terms-kets-on-employees-contracts\/","title":{"rendered":"Minimum Requirements For Key Employment Terms (KETs) On Employees Contracts"},"content":{"rendered":"\n

When hiring in Singapore, employers must issue Key Employment Terms (KETs) in writing to all employees who are 1) covered under the Employment Act<\/a><\/strong> and 2) employed for 14 days or more<\/strong>.<\/p>\n\n\n\n

This set of Key Employment Terms have to be given to employees within 14 days after the start of their employment, and must include their terms of employment.<\/p>\n\n\n\n

What Should Be Included In Key Employment Terms (KETs) Given To Employees?<\/strong><\/h3>\n\n\n\n

While employers will typically have contracts for employees stipulating terms and conditions for their employment, they should also include these 18 Key Employment Terms (KETs) as set out by the Ministry of Manpower (MOM), unless they don\u2019t apply.<\/p>\n\n\n\n

For example, as overtime pay does not apply to PMEs, the Key Employment Terms (KETs) in item 11 (Overtime Period) and 12 (Overtime Pay) do not need to be included. If the employment is not on a fixed contract, then there would similarly not be any need to include item 5 (Duration of employment).<\/p>\n\n\n\n

No.<\/strong><\/td>Key Employment Terms (KETs)<\/strong><\/td><\/tr>
1<\/td>Full name of employer<\/td><\/tr>
2<\/td>Full name of employee<\/td><\/tr>
3<\/td>Job title, main duties and responsibilities<\/td><\/tr>
4<\/td>Start date of employment<\/td><\/tr>
5<\/td>Duration of employment (if employee is on a fixed-term contract)<\/td><\/tr>
6<\/td>Working arrangements, such as:
– Daily working hours (e.g. 8.30am to 6pm)
– Number of working days per week (e.g. six)
– Rest day (e.g. Saturday)<\/td><\/tr>
7<\/td>Salary Period<\/td><\/tr>
8<\/td>Basic salary
– For hourly, daily pr piece-rated workers, employees should indicate the basic rate of pay (e.g. $X per hour, per or per piece)<\/td><\/tr>
9<\/td>Fixed allowances<\/td><\/tr>
10<\/td>Fixed deductions<\/td><\/tr>
11<\/td>Overtime payment period (if different from salary period in item 7)<\/td><\/tr>
12<\/td>Overtime rate of pay<\/td><\/tr>
13<\/td>Other salary-related components, such as:
– Bonuses
– Incentives<\/td><\/tr>
14<\/td>Types of leave: such as:
– Annual leave
– Outpatient sick leave
– Hospitalisation leave
– Maternity leave
– Childcare leave<\/td><\/tr>
15<\/td>Other medical benefits, such as:
– Insurance
– Medical benefits
– Dental benefits<\/td><\/tr>
16<\/td>Probation period<\/td><\/tr>
17<\/td>Notice period<\/td><\/tr>
18<\/td>(Optional) Place of work
– Used if the work location is different from the employer\u2019s address.
– Although optional, you are strongly encouraged to include this information.<\/td><\/tr><\/tbody><\/table>
Source: Ministry of Manpower (MOM)<\/a><\/figcaption><\/figure>\n\n\n\n

For employers who aren\u2019t sure or prefer to follow a template, MOM has provided a sample form<\/a> so that none of the fields will be left out.<\/p>\n\n\n\n

Just including the relevant Key Employment Terms (KETs) in your contract is not sufficient on its own. While businesses may want to protect their interest, their Key Employment Terms for employees also cannot be less favourable than the minimum requirements as set out by the Employment Act.<\/p>\n\n\n\n

Read Also: <\/em><\/strong>Singapore Employment Act: 10 Statutory Requirements To Pay Employees<\/em><\/strong><\/a><\/em><\/strong><\/p>\n\n\n\n

Minimum Requirements In The Employment Act For Key Employment Terms (KETs)<\/strong><\/h3>\n\n\n\n

Some of the Key Employment Terms are very standard, such as full name of employer, full name of employee and having to list and employee\u2019s job title, main duties and responsibilities.<\/p>\n\n\n\n

Others, while also looking straightforward, may be governed by the Employment Act, and may have minimum statutory requirements. This means what businesses list down on the employment contract may or may not be binding depending on whether they are in line with the minimum requirements in Singapore.<\/p>\n\n\n\n

#1 Working Arrangements<\/strong><\/h3>\n\n\n\n

Employers need to list the daily working hours of their employees, the number of working days per week and the rest days that the employee will have. For employees covered under Part IV of the Employment Act<\/strong>, work hours are regulated.<\/p>\n\n\n\n

These employees comprise:<\/p>\n\n\n\n

  1. Workmen (doing manual labour) earning a basic monthly salary of not more than $4,500<\/strong><\/li>
  2. Employees who are not workmen, but who are covered by the Employment Act and earn a monthly basic salary of not more than $2,600<\/strong><\/li><\/ol>\n\n\n\n

    For such employees, contractual work arrangements are:<\/p>\n\n\n\n

    If Employees Work<\/strong><\/td>Contractual Hours Allowed<\/strong><\/td><\/tr>
    5 days or less a week<\/td>Up to 9 hours per day or 44 hours a week<\/td><\/tr>
    More than 5 days a week<\/td>Up to 8 hours per day or 44 hours a week<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    There is some flexibility in allowing employees to work more than 44 hours a week. For example, an employee can work 48 in week 1, 40 hours in week 2 and 44 hours in week 3. So long as hours worked add up to an average of 44 hours in a continuous 3-week period, it is acceptable.<\/p>\n\n\n\n

    Employees covered under Part IV of the Employment Act are also not allowed to work more than 12 hours a day or 72 hours of overtime in a month. Employers must apply to MOM for an overtime exemption<\/a> for employees to work beyond the overtime cap.<\/p>\n\n\n\n

    While this protects employees, the reality is that more than 90% of Singapore employees are not protected by Part IV of the Employment Act<\/strong>. MOM goes on to encourage employers not to require more than 60 hours of work per week for employees\u2019 well-being and safety. <\/p>\n\n\n\n

    #2 Salary Period<\/strong><\/h3>\n\n\n\n

    According to the Employment Act, no salary period can exceed one month. Employers retain the flexibility to have weekly or daily salary periods.<\/p>\n\n\n\n

    Even if employers fail to list the salary period, it cannot exceed one month, and in fact, it will be taken to mean a salary period of one month.<\/p>\n\n\n\n

    #3 Fixed Deductions<\/strong><\/h3>\n\n\n\n

    According to the Employment Act, employers cannot simply make deductions to an employee\u2019s salary as they deem necessary. In the Employment Act, there is a list of allowable salary deductions for:<\/p>\n\n\n\n