In Singapore’s robust 2026 business landscape, an employment contract is more than a simple agreement- it is a mandatory legal safeguard. Under the Employment Act, employers are required to issue a written set of Key Employment Terms (KETs) to any employee covered by the Act who is employed for 14 days or more.
Failure to include these specific legal requirements can result in administrative penalties from the Ministry of Manpower (MOM) and leave your business vulnerable to disputes. At Hallmark Corporate Services, we ensure your documentation is not just compliant, but strategically sound.
1. Mandatory Key Employment Terms (KETs)
As of 2026, the MOM requires every employment contract (or an accompanying KET document) to clearly state the following 17 items. These must be provided within 14 days of the employee’s start date:
- Employer & Employee Details: Full legal names of both parties.
- Job Information: Official job title, main duties, and the start date of employment.
- Work Arrangements: Daily working hours, number of working days per week, and the designated rest day.
- Salary Components: Basic salary, fixed allowances, fixed deductions, and the salary payment period (which must be at least once a month).
- Overtime (if applicable): The overtime payment period and the specific overtime rate of pay.
- Leave & Benefits: All types of paid leave (annual, sick, maternity, etc.) and other medical benefits such as insurance or dental.
- Probation & Notice: The length of the probation period and the required notice period for termination.
2. Statutory Leave Entitlements in 2026
Your contract cannot provide less than the minimum protections set by the Employment Act. In 2026, ensure these specific benchmarks are met:
- Annual Leave: Minimum of 7 days in the first year, increasing by 1 day for every year of service, up to a maximum of 14 days.
- Sick Leave: After 6 months of service, employees are entitled to 14 days of paid outpatient sick leave and 60 days of hospitalization leave annually.
- Public Holidays: All employees are entitled to 11 paid public holidays. If they work on these days, they must receive an extra day’s salary or a day off in lieu.
3. Termination and The “Equal Notice” Rule
A common pitfall for Singapore businesses is the notice period. By law, the notice period must be identical for both the employer and the employee. If your contract requires a 1-month notice from the employee but only 2 weeks from the company, that clause is null and void.
In 2026, with the statutory retirement age rising to 64 (as of July 1), contracts must also avoid any clauses that contradict the Retirement and Re-employment Act.
4. Protecting Business Interests: IP and Confidentiality
While the MOM mandates the basics, a high-quality corporate contract should also include:
- Confidentiality Clauses: To protect trade secrets and sensitive client data.
- Intellectual Property (IP) Rights: Clearly stating that all work created during employment belongs to the company.
- Restraint of Trade: Non-compete or non-solicitation clauses. Note: In 2026, these must be “reasonable” in scope and duration to be enforceable in Singapore courts.
5. Why Compliance Audits Matter
With the 2026 shift toward automated MOM audits, having an “outdated” template is a significant risk. For example, failing to update your Ordinary Wage ceiling for CPF contributions or missing the new 2026 senior worker contribution rates can lead to immediate compliance flags.
Conclusion: Foundations for a Strong Workforce
A compliant contract is the first step in building a professional relationship based on trust and transparency. It protects your intellectual property, prevents wrongful dismissal claims, and ensures you stay on the right side of the law.
At Hallmark Corporate Services, we provide comprehensive HR compliance audits and contract drafting services to ensure your business remains 100% MOM-compliant in the digital-first economy of 2026.
Does your current employment contract reflect the 2026 statutory retirement age changes? Would you like a professional review of your KETs to ensure full compliance?