Hiring Employees in a Newly Incorporated Singaporean Company

Hiring employees in a newly incorporated Singaporean company involves navigating well-established regulations and processes. Ensuring compliance with these guidelines is crucial for both employers and employees. Here’s a step-by-step guide on the process of recruiting and hiring employees in Singapore:

1. Understanding Employment Passes:

For hiring foreign professionals, Employment Passes (EPs) are typically required. EPs are issued by the Ministry of Manpower (MOM) and are subject to specific criteria, such as a minimum monthly salary and employee qualifications. Employers must apply for EPs on behalf of their foreign hires.

2. S Pass for Mid-Skilled Workers:

The S Pass is designed for mid-skilled workers, and eligibility is based on salary, education, and work experience. Employers must ensure the candidate meets the criteria before applying for an S Pass.

3. Work Permits for Foreign Workers:

For semi-skilled and unskilled foreign workers, Work Permits are required. These are typically applicable to sectors like construction and manufacturing. Employers must apply for Work Permits and adhere to sector-specific requirements.

4. Advertising Job Openings:

As part of the Fair Consideration Framework (FCF), companies must advertise job openings on the national jobs portal, MyCareersFuture, before hiring EP holders. This ensures that Singaporean candidates are considered relatively for job opportunities.

5. Drafting Employment Contracts:

Employment contracts are a fundamental aspect of the hiring process. Contracts should include job responsibilities, working hours, remuneration, benefits, termination clauses, and other relevant terms. It’s advisable to seek legal advice to ensure compliance with Singaporean labour laws.

6. Employee Handbook:

While not mandatory, creating an employee handbook can help communicate company policies and procedures. It clarifies expectations, benefits, and disciplinary measures, contributing to a harmonious work environment.

7. Registration with the Central Provident Fund (CPF):

Employers must register local and foreign employees for the Central Provident Fund (CPF), a social security savings plan. Employers and employees contribute to the CPF, which helps fund retirement, healthcare, and housing needs.

8. Compliance with the Employment Act:

Employers must ensure compliance with the Employment Act, which outlines the basic terms and conditions of employment for workers in Singapore. This includes working hours, rest days, public holidays, and leave entitlements.

9. Health and Safety Compliance:

Employers must provide a safe and healthy working environment for their employees. Compliance with the Workplace Safety and Health Act is essential to ensure workplace safety and the well-being of employees.

10. Employee Benefits and Insurance:

Companies may provide additional employee benefits such as medical insurance, dental coverage, and other perks to attract and retain talent. These should be clearly outlined in employment contracts.

11. Probation Period:

Many companies in Singapore have a probationary period for new hires. During this time, employers assess the employee’s suitability for the role, and employees can evaluate the company culture and work expectations.

12. Employee Orientation:

A comprehensive employee orientation program can help new hires acclimate to the company culture, understand their roles, and become familiar with policies and procedures.

In conclusion, recruiting and hiring employees in a newly incorporated Singaporean company involves compliance with various regulations, from work passes to employment contracts and labour laws. Navigating these processes diligently is essential to building a legally compliant and harmonious work environment fostering positive relationships between employers and employees. Xignam Consulting can help you stay on top of any updates or changes in labour regulations to ensure ongoing compliance.

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