What to check in an employment contract before signing — Channel NewsAsia
Job seekers should assess an employment contract not only by the salary level, but also by the notice period for resignation, overtime conditions, probation period and restrictions after employment ends. This was reported by Channel NewsAsia, citing employment and labour law specialists in Singapore.
According to Sean Tong, head of the Asia-Pacific division at recruitment consultancy Frazer Jones, the notice period should correspond to the level of the position and the scope of responsibility. As a guideline, he cited around one month for entry-level and junior positions, two to three months for mid-level specialists, and from three to six months for senior executives and top managers.
Terms that may restrict an employee
In addition to the notice period, experts advise checking provisions on working hours, overtime pay, the probation period, contract termination, bonuses and benefits. Attention should also be paid to garden leave terms — a period when an employee formally remains on staff and receives a salary but does not work for part or all of the notice period.
Clauses prohibiting work for competitors, restrictions on approaching former clients or colleagues with business or job offers, as well as confidentiality obligations, may be important. Ben Chester Cheong, a law lecturer at the Singapore University of Social Sciences, urged caution regarding terms that give an employer an unrestricted right to reduce pay or change an employee's role, as well as obligations to reimburse the costs of ordinary professional training.
More current news is available on the UA.News Telegram channel Telegram.
Amarjit Kaur, head of employment law practice at Withers KhattarWong, noted that the law does not define what notice period is “unreasonably long.” At the same time, Singapore's Employment Act provides that if such a period is not specified in the contract, it may be up to four weeks depending on the length of the employee's service with the company.
How to discuss a shorter period
Chan Chong, a representative of recruitment company Ethos BeathChapman, noted that employment contract terms are not always final. Senior specialists, in particular, may discuss notice periods, restrictive provisions and terms related to starting work before signing a contract. Tong advises not simply objecting to a contract clause, but explaining its practical difficulties and proposing an acceptable alternative.
After submitting a resignation letter, the employer and employee may also, by mutual agreement, shorten or waive the notice period. Kaur stressed that such changes should be recorded in writing — in a supplementary agreement, an amended contract or correspondence confirming both parties' consent.
Other options include paying compensation for the unworked portion of the notice period or using annual leave to bring forward the last working day. Some employees also ask a future employer to cover such compensation in order to start a new job sooner. Experts advise finishing work professionally, as connections with former managers and colleagues may affect future career opportunities.
