Can we adjust paid time off (PTO)?
Yes, if desired, you can provide additional time off beyond the statutory requirement. Please note that PTO cannot be reduced.
Can we adjust working hours?
Yes, working hours can be adjusted provided that the supported employee’s consent is obtained prior to the adjustment, and the revised working hours comply with Singapore law.
Can we remove the notice period?
Notice period can be waived only in cases of summary dismissal or upon mutual consent between the employee and the employer. If the notice period is not observed, payment in lieu of notice must be made. It is typical for employment agreements to explicitly state the notice periods that will be used, which can be more generous than the legal minimums. Nonetheless, if no specifics regarding notice are included in the employment agreement, the legal minimums would apply. These range from 1 days’ notice where the length of service is less than 26 weeks, to 4 weeks’ notice where the length of service is 5 years or more.
Can we remove or increase the probationary period?
There are no statutory requirements around probationary periods, but they are allowed in Singapore. Therefore, the probationary period can either be reduced or increased as long as the increase is reasonable. Typically, probationary periods last between 3 to 6 months.
Can we add commissions, bonuses, or ad hoc payroll items?
Bonuses are permitted and are at the sole discretion of the employer. That said, employers customarily provide a 13th month bonus, called the Annual Wage Supplement, though this is not compulsory. Please see here for more information.
Key Performance Indicators (KPIs) can be included as part of the employment agreement. However, it is recommended to leave this out of the employment agreement and have KPIs listed in a separate document between you and the supported employee.
How can we offer equity or stocks to our supported employees?
In Singapore, we offer you the option of issuing equity as either “nonemployee” or “employee” grants.
Irrespective of the equity issuance type (i.e., nonemployee or employee grants), we facilitate equity compliance requirements.
How can we offer equity without signing a direct agreement with our supported employee?
We require you to directly issue the grant notice (i.e., side agreement) to your supported employee. This side agreement should not include any language that indicates a direct employer or employee relationship between you and your supported employee.