Tourlife Consultants Private Limited
has been supporting Japanese entrepreneurs since 2009 with recruitment, executive search, payroll, HR support, work pass applications, and relocation services. With our bilingual expertise (Japanese, English, and Chinese) and SME 500 Awards 2023 & 2024 recognition, we ensure that foreign businesses entering Singapore stay fully compliant with the latest 2026 Ministry of Manpower (MOM) standards for employment contracts.📑 Table of Contents
- The Importance of Written KETs in 2026
- 1. Full Identity of Parties & Job Title
- 2. Appointment Start Date & Duration
- 3. Working Arrangements (Hours & Rest Days)
- 4. Salary Period & Payment Dates
- 5. Basic Salary & Fixed Components
- 6. Overtime Payment Details
- 7. Leave Entitlements (Statutory & 2026 Updates)
- 8. Medical & Dental Benefits
- 9. Probation & Notice Periods
- 10. 2026 Retirement & Re-employment Clauses
- 💼 How Tourlife Consultants Can Help
- ❓ Frequently Asked Questions
📘 The Importance of Written KETs in 2026
In Singapore, it is a legal requirement under the Employment Act to provide Key Employment Terms (KETs) in writing to any employee who is employed for 14 days or more. For 2026, MOM has tightened oversight on contract transparency to ensure foreign and local workers are fully protected. A “verbal agreement” is not sufficient and can lead to administrative penalties.1️⃣ Full Identity of Parties & Job Title
The contract must clearly state the full legal names of both the employer (the entity registered with ACRA) and the employee (as per NRIC or Passport). It must also include:- Job Title: Must match the role submitted in any work pass applications.
- Main Duties: A clear summary of responsibilities to avoid disputes over “scope creep.”
2️⃣ Appointment Start Date & Duration
Clearly define when the employment begins. If it is a Fixed-Term Contract, the end date must be specified. In 2026, many Japanese firms use “Term Contracts” for project-based roles; ensure these still include the mandatory notice periods.3️⃣ Working Arrangements (Hours & Rest Days)
You must specify:- Daily Working Hours: (e.g., 9:00 AM – 6:00 PM).
- Number of Working Days: (e.g., 5 days per week).
- Rest Day: Usually Sunday, but must be explicitly stated.
4️⃣ Salary Period & Payment Dates
The Salary Period cannot exceed one month.- Payment Date: Salary must be paid within 7 days after the end of the salary period.
- Overtime Payment: Must be paid within 14 days after the end of the salary period.
5️⃣ Basic Salary & Fixed Components
Transparency is key for 2026 compliance:- Basic Salary: Stated as a monthly or hourly rate.
- Fixed Allowances: (e.g., transport or mobile allowance).
- Fixed Deductions: (e.g., standard items, but excluding CPF).
6️⃣ Overtime Payment Details
For employees covered under Part 4 of the Employment Act (non-workmen earning up to SGD 2,600), you must state:- The Overtime Rate of Pay (Minimum 1.5x basic hourly rate).
- The Overtime Payment Period.
7️⃣ Leave Entitlements (Statutory & 2026 Updates)
Your contract must list types of leave including:- Annual Leave: Minimum 7 days, pro-rated.
- Sick Leave: Outpatient and Hospitalization leave.
- Parental Leave: Must reflect the 2026 Shared Parental Leave (10 weeks) for eligible parents.
8️⃣ Medical & Dental Benefits
While not all medical benefits are mandatory for every role, any Medical Insurance (mandatory for S Pass and Work Permit holders) or dental benefits you provide must be documented in the KETs.9️⃣ Probation & Notice Periods
The Notice Period must be the same for both employer and employee.- If not stated, statutory notice periods apply (ranging from 1 day to 4 weeks depending on tenure).
- Probation: Usually 3 to 6 months; the notice period during probation is often shorter.
🔟 2026 Retirement & Re-employment Clauses
Effective July 1, 2026, the statutory Retirement Age increases to 64 and the Re-employment Age to 69.- Contracts should not contain clauses that mandate retirement earlier than the statutory age.
- Employers must offer re-employment to eligible employees up to age 69 if they meet performance and health criteria.
💼 How Tourlife Consultants Can Help
A single missing clause can lead to MOM audits or labor disputes. We provide:- Contract Drafting: Custom 2026-compliant KETs and Handbooks.
- Compliance Audits: Reviewing existing contracts for the July 2026 retirement age shift.
- Bilingual Support: Ensuring your Japanese headquarters and local staff are on the same page.
❓ Frequently Asked Questions
Q1. Can I provide KETs in an Employee Handbook instead of the contract? Yes, but you must clearly refer to the handbook in the contract and ensure the employee has easy access to it.Q2. What is the penalty for not issuing written KETs? MOM can issue administrative penalties of up to SGD 400 per employee for failure to provide accurate and complete KETs.
Q3. Do I need to update contracts for the July 2026 retirement age change? Yes. You should ensure your internal policies and contracts reflect the new retirement age of 64 to avoid “wrongful dismissal” claims.
Q4. Are managers and executives (PMEs) required to have overtime clauses? No. Part 4 (Overtime) does not apply to Managers and Executives. However, their salary and leave terms must still be documented.
Q5. Is the 10-week Shared Parental Leave mandatory to list? If your employee is eligible (Singaporean child born on/after April 1, 2026), you must allow them to exercise this right, so including it in your leave policy is highly recommended.
✨ Is your business ready for the 2026 labor law changes? Contact Tourlife Consultants today for a contract review at enquiry@tourlife.sg or WhatsApp us at +65 9380 7956.
