Can we add company-specific information to the employment agreement? Will Velocity Global review these updates?
Yes, we can specify your company name in the employment agreement, in particular that the supported employee will provide services to your company. If there are other inclusions of company-specific information, our local internal counsel can review these to ensure compliance.
What are the types of employment agreements we can offer? (e.g., fixed-term, indefinite, project-based)
There are no rules relating to the duration of employment contracts in Singapore. The Employment Act states that a contract of employment can be terminated by either party at any time, subject to the notice period as stated in the employment agreement. If no specified notice period is stated, the length of the notice period varies depending on the duration of the employee’s service with the minimum amount of notice to be 1 day, where the employee has been employed for less than 26 weeks.
Fixed-term contracts are therefore permitted in Singapore, although they are rarely used. There are no legal rules governing the duration of fixed-term contracts. Certain benefits (e.g., annual leave, sick leave) can be restricted with the use of fixed-term contracts of less than 3 months. It is best practice to offer fixed-term contracts of at least 1 year. Please see here for more information on fixed-term contracts.
Can we recognize seniority in Singapore?
Yes, seniority can be recognized in Singapore in several ways. We may be able to recognize seniority by stating in the employment agreement that we will deem the supported employee’s start date as an earlier date. Singapore law also requires that employees that have served for a longer period be given more days of annual leave, up to a maximum of 14 days (though employers are able to provide more), as well as a longer notice period, up to a maximum of 4 weeks (though employers and employees may mutually agree to apply a longer notice period). Beyond this, employers are also able to provide senior employees more benefits, including long service awards.
Can we include benefits in the employment agreement?
Yes, we can include benefits in generic terms in the employment agreement (e.g., supplemental medical insurance will be provided). Specific terms, however, should be provided separately.
Can we add variable compensation to the employment agreement?
Yes, bonuses and variable compensation can be included according to the language you provide. For commissions and bonuses, we will typically use our Variable Compensation Agreement to outline the performance or metrics that your supported employee needs to meet to be eligible to receive payment.
If we proceed with a Variable Compensation Agreement, we recommend that this be extended to your supported employee at a later date, after the employment agreement is signed, which will help expedite onboarding. In this scenario, we ask that you have a conversation with your supported employee as they may refuse to sign the employment agreement without having the Variable Compensation Agreement in their hand. We also need to receive your updated variable compensation plan at the end of each year or when it expires.