Is Your Company Prepared? Key Points to Review in Your Work Rules & Employment Contracts

Dear Valued Clients,

Thank you for your continued support. This is Pasona Singapore.

In Singapore, employment regulations and rules are continually being reviewed.

Most recently, the expansion of the Childcare Leave scheme was announced at the National Day Rally (NDR) 2026.

Additionally, a High Court judgment regarding the termination of employment and notice pay for employees on probation has been reported.

In light of these developments, we would like to share the “Key Points for Reviewing Employee Handbooks and Employment Contracts” that we encourage all companies to check.

We hope you find this useful.

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At the National Day Rally (NDR) 2026, the expansion of the Childcare Leave scheme was announced as part of strengthened support measures for working parents.

Working parents to get 8 to 12 days of childcare leave a year, for kids aged 12 and below | The Straits Times

In response to the declining birthrate and aging population in Singapore, the government has successively expanded leave schemes for working parents over the past two to three years, going beyond just the Childcare Leave announced this time.

※ Click on the image to view it in larger size


These changes to statutory leave schemes may also affect the Leave Policy outlined in a company’s Employee Handbook.

While further details and the implementation timeline for Childcare Leave are expected to be announced in due course, changes to Paternity Leave and Shared Parental Leave have already taken effect.

In addition, the statutory retirement age was raised from 63 to 64, while the re-employment age limit was raised from 68 to 69, effective from July this year.
 

If it has been several years since your Employee Handbook was prepared or last revised, we recommend taking this opportunity to review whether your company’s policies and regulations are aligned with Singapore’s current and upcoming employment regulations.



In August 2026, the Singapore High Court issued a ruling concerning the termination of an employee during probation and the payment of notice pay.

Employee on probation entitled to notice pay: High court | The Straits Times
 

In this case, the Court reaffirmed that the expiry of a probation period does not, by itself, automatically terminate an employment contract.

Even during probation, employers are required to follow the Notice Period stipulated in the Employment Contract and carry out the appropriate termination procedures.


Therefore, it is important to review your Employment Contracts and ensure that the following points are clearly addressed:

  • Whether the probation period is clearly defined
  • Whether the Confirmation process upon completion of probation is clearly stated
  • Whether the Notice Period during probation is clearly specified
  • Whether the difference between the Notice Period during probation and after confirmation is clearly stated
  • Whether the treatment of Salary in Lieu of Notice is appropriate
  • Whether there are any inconsistencies or unclear wording throughout the Termination Clause


While many companies prepare their Employee Handbook and Employment Contracts when establishing their Singapore entity or hiring their first employees, it is not uncommon for these documents to go several years without a comprehensive review.

This can happen particularly when expatriate managers rotate every three to five years, resulting in opportunities for review being overlooked.

In addition, some companies have addressed each change in regulations or internal policies by adding an Appendix or supplementary document.
Over time, this can result in situations where “it is unclear which version of the policy is the latest” or “the consistency between the main document and its Appendices has not been fully checked.”

There are also cases where repeated partial revisions have resulted in inconsistencies between the Employee Handbook and Employment Contract, or discrepancies between the written policies and the company’s actual HR practices and operations.

When employment regulations change or new court rulings are introduced, it is a good opportunity not only to update the relevant sections, but also to consolidate previous revisions and conduct a comprehensive review of the company’s Employee Handbook as a whole.

At Pasona Singapore, we provide Employee Handbook and Employment Contract review and revision services for Japanese companies operating in Singapore.

Based on your company’s current Employee Handbook and Employment Contracts, we review the documents from perspectives such as:

  • Whether the content is aligned with Singapore’s current employment regulations
  • Whether there are any discrepancies between actual HR practices and the written policies
  • Whether there are any unclear provisions or clauses that could potentially lead to issues in the future
  • Whether the company’s employment terms and benefits are in line with common practices in Singapore

We will also recommend appropriate revisions where necessary.


If any of the following above sounds familiar, we encourage you to take this opportunity to review your documents with us:

“I’m not sure when our Employee Handbook was last reviewed.”
“We have made partial revisions whenever regulations changed, and would now like to review the entire document.”
“Our documents were based on a template from our Japan headquarters, and we would like to confirm whether they are appropriate for Singapore.”


Enquiries:
Pasona Singapore – Sales & Marketing Division
Sales@pasona.com.sg

That concludes this month’s HRM newsletter feature on “Key Points to Review in Your Employee Handbook & Employment Contracts.”

We hope you find this information useful.


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Disclaimer: Please use the information provided in this newsletter at your own discretion and risk. We are not responsible for any losses incurred by users in relation to the information provided in this newsletter and we seek your understanding. 


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