Written by Team Farallon
Employment agreements are necessary to keep the relationship between an employer and employee in check and to lay out possible dispute resolution options.
Without a well-drafted employment agreement, businesses and employees alike may find themselves embroiled in frequent employment disputes.
In order for employment agreements to be enforceable, both parties must enter into the contract voluntarily.
Every term of a contract of service which provides a condition of service which is less favourable to an employee than any of the conditions of service prescribed by this Act shall be illegal, null and void to the extent that it is so less favourable.
For employees covered under the Employment Act, the employment contract should not contain any terms that are less favourable to an employee than any of the conditions of service prescribed by the Act Employment Act. In the event such terms are present in an employment agreement, they shall be illegal, null and void. Examples of such terms include the following:
Key employment terms are the key elements in an employment contract that outline the most important terms and conditions of an employment contract.
Your employment contract should contain the following Key Employment Terms, unless it is not applicable to the employee:
There are additional items that can be added to employment contracts such as Non-Disclosure Agreements and Non-Compete Agreements.
Either party may terminate an employment contract by either following the terms stated in the contract or by following the minimum statutory period. An employment contract should contain a termination clause, which clearly states the required notice period that either party should give the other before proceeding with termination
Singapore law dictates that if one party does not perform to his or her obligations under a contract, the other party may file a civil suit against the other party for damages for breach of contract.
As an employer, you can add provisions in your employment contract stating a specific sum of money to be paid as compensation by the breaching party.
If you’re an employer or employee who needs legal advice with regards to drafting a contract, breach of contract, or any other employment contract-related matters, please feel free to contact our employment lawyers for a consultation.
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