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Tripartite Guidelines Developed for Employers to Give Greater Clarity on Leave Benefits and Notice Period for Term Contract Employees

  1. The Ministry of Manpower (MOM), National Trades Union Congress (NTUC), and the Singapore National Employers Federation (SNEF), have jointly developed a set of Tripartite Guidelines on the Employment of Term Contract Employees.
  2. Although the majority of the working residents remain employed in permanent positions, term contract employees form a small but important part of our workforce.
  3. Term contract employees are those who are employed on fixed-term contracts that will terminate upon the expiry of a specific term unless it is renewed. Employers may wish to employ employees on term contracts for example, when the job is only available on a temporary or project basis. Some employees themselves prefer to enter into contract work to meet their own need for flexibility in work schedule.
  4. Currently, employees on term contracts are entitled to statutory employment benefits if they meet the eligibility criteria. The Tripartite Partners have therefore developed the Guidelines to further clarify the granting of leave benefits to term contract employees with long-term working relationship and notice period that employers should give before contract expiry.
  5. "According to MOM's 2015 Labour Force Report, there were 202,400 term contract employees last year and this formed 11.3% of the resident workforce. Employers value these workers for the flexibility and contributions to their short term business requirements. As such, the Federation believes the guidelines will provide employers with the framework to offer term contracts which can better attract such workers. SNEF encourages employers to also take a longer term view of their manpower needs and create opportunities to retain such workers,” said Mr Koh Juan Kiat, SNEF’s Executive Director.
  6. Mr Zainal Sapari, NTUC Assistant Secretary-General said, “Term contract employees are as valuable as any other employees. These guidelines help ensure that the interests of these term contract employees are taken care of, that they are fairly treated and are awarded due employment entitlements. Employers are strongly encouraged to adhere to these guidelines. The Labour Movement will work closely with our family of unions, associates, partners, social enterprises and related organisations, to ensure that employment practices are aligned with the guidelines.
  7. Mr Alvin Lim, Divisional Director of Workplace Policy & Strategy at the Ministry of Manpower noted that, “The guidelines will benefit both employers and employees. On one hand, the guidelines will provide employers with greater clarity on the employment terms they should be providing to their term contract employees. Term contract employees will also benefit from the good employment practices outlined in the guidelines.”
  8. The Tripartite Partners will actively promote the adoption of the good practices recommended in the Guidelines. For more information, you may wish to contact:

    Singapore National Employers Federation (SNEF)
    Email: ir@snef.org.sg

    Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP)
    Online Enquiry via this link: https://www.tafep.sg/contact-us
Last Updated: 23 November 2016