Employment Contract and KETs (key employment terms)
What is an employment contract?
- An employment contract is a contract of service that sets out the relationship between employer and employee, including the terms and conditions of employment.
- It is also known as an Employment Agreement, Letter of Appointment or Offer Letter.
- A contract can be written, verbal, express or implied. We recommend putting it in writing to minimise disputes over the agreed terms.
- For employees covered by the Employment Act, the terms of the contract cannot be less favourable than the minimum requirements of the Act.
What are KETs (key employment terms)?
Employers must issue KETs in writing to employees who are covered by the Employment Act and employed for a continuous period of 14 days or more. KETs must be given within 14 days of the employee's first day of work. They can be given in hard or soft copy, and can be included in the employment contract itself.
KETs must include the following, where applicable:
- Full name of employer and employee
- Job title, main duties and responsibilities
- Start date of employment, and duration of employment for fixed-term contracts
- Working arrangements: daily working hours, number of working days per week and rest day
- Salary period and basic salary (plus the basic rate of pay for hourly, daily or piece-rated workers)
- Fixed allowances and fixed deductions
- Overtime payment period and overtime rate of pay (not needed for managers and executives who are not entitled to overtime pay)
- Other salary-related components, such as bonuses and incentives
- Types of leave, such as annual leave, outpatient sick leave, hospitalisation leave, maternity leave and childcare leave
- Medical benefits, such as insurance, medical and dental benefits
- Probation period and notice period
- Place of work, if different from the employer's address (optional, but recommended)
You can find the full list, KETs templates and a KETs verification tool on MOM's Key Employment Terms page.
