Employment Act (Chapter 91): Core employment legislation that covers basic terms and conditions of employment, including salary payments, termination procedures, and notice periods. 2019 amendments extend coverage to all employees except domestic workers, seafarers, and public servants.
Central Provident Fund Act (Chapter 36): Mandatory social security savings scheme that affects how bonuses and severance payments are treated for CPF contributions.
Income Tax Act (Chapter 134): Governs the tax treatment of retention bonuses and severance payments, including reporting requirements.
Retirement and Re-employment Act: Relevant for employees approaching retirement age, affecting severance terms and re-employment obligations.
MOM Guidelines: Ministry of Manpower guidelines covering responsible retrenchment practices and fair employment practices.
Personal Data Protection Act 2012: Regulates the handling of employee's personal information and consent requirements for data usage in employment contracts.
Employment Claims Act 2016: Establishes dispute resolution mechanisms and procedures for salary-related claims.
Key Contract Components: Essential elements including performance metrics for retention bonus, payment terms, non-compete clauses, confidentiality provisions, severance calculation formula, tax implications, release of claims, return of company property, and continuing obligations post-employment.
