Employment Law

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Employment Act – Who does it cover?

An Employment Contract is an agreement by which an employer agrees to employ another as his employee and the employee in turn agrees to serve his employer.


Generally, rights and obligations of employers and employees are governed by the Employment Act but the following persons are excluded from coverage under the Act:-

  • Persons who are PMEs i.e. in professional, managerial or executive positions earning a monthly salary of more than S$4,500.00;

  • Seafarers;

  • Domestic workers; and

  • Persons employed by a Statutory Board or the Government.

Employee or Independent Contractor?

Unlike a contract of service or an employment contract, a contract for service (i.e. independent contractor) does not create an employer-employee relationship. This person is usually self-employed and provides his services on an adhoc basis for a fee.


Examples of such contracts for service are a taxi or Uber driver, a free-lance IT consultant or an insurance agent. An independent contractor would not be entitled to the usual benefits accorded to an employee unless the contract for service provides for them.


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