Straight definitions for the acronyms and terms that come up across Singapore employment law. Where a term has its own full guide on this site, the definition links there for the details.
A | C | D | E | F | G | I | K | L | M | N | O | P | R | S | T | U | V | W
A
Additional Wage (AW)
Wage payments not tied to a specific month’s work, such as annual bonuses or the Annual Wage Supplement. AW is subject to a separate CPF ceiling from Ordinary Wage. Read the full guide →
Adoption Leave
Paid leave available to an eligible parent adopting a child under 12 months old, on top of standard childcare leave entitlements. Read the full guide →
Annual Leave
Paid time off that accrues with length of service under the Employment Act, starting at 7 days in the first year for covered employees. Read the full guide →
Annual Wage Supplement (AWS)
Also called the 13th-month payment. A non-contractual bonus many Singapore employers pay at year-end; it isn’t legally mandatory unless promised in the employment contract. Read the full guide →
C
Central Provident Fund (CPF)
Singapore’s mandatory social security savings scheme. Employers and employees both contribute a percentage of wages, split across retirement, healthcare (Medisave) and housing accounts. Read the full guide →
Childcare Leave
Paid leave for parents of children under 7 (with extended entitlements for children under 12), funded partly by the employer and partly by the government. Read the full guide →
Collective Agreement
A binding agreement between an employer (or employers’ association) and a registered trade union setting out terms of employment for unionised staff.
COMPASS
The Complementarity Assessment Framework — a points system MOM uses to assess Employment Pass applications on salary, qualifications, diversity and support for local employment. Read the full guide →
Confinement
The period immediately after childbirth. Some employment terms and insurance policies reference this period when calculating maternity-related entitlements. Read the full guide →
Constructive Dismissal
A claim that an employee was effectively forced to resign because the employer breached the contract or made conditions intolerable — treated similarly to wrongful dismissal. Read the full guide →
D
Dependant’s Pass (DP)
A pass allowing the spouse and children of an Employment Pass or S Pass holder to live in Singapore. DP holders may apply separately for a Letter of Consent to work. Read the full guide →
Dependency Ratio Ceiling (DRC)
The maximum proportion of foreign workers a company may employ relative to its total headcount, varying by sector. Read the full guide →
E
Employer of Record (EOR)
A third-party organisation that formally employs staff on behalf of another company, handling payroll, CPF and statutory compliance — often used for hiring without a local entity.
Employment Act (EA)
Singapore’s main employment law, setting minimum terms for hours, leave, salary and termination for most employees, with some categories excluded or covered under separate Part IV protections. Read the full guide →
Employment Agency
A licensed business that helps match job seekers with employers, regulated separately from the employers who use their services.
Employment Claims Tribunal (ECT)
A tribunal under the State Courts that hears salary-related and wrongful dismissal claims after mediation at TADM fails to resolve them. Read the full guide →
Employment Pass (EP)
A work pass for foreign professionals, managers and executives, assessed against COMPASS criteria including salary and qualifications. Read the full guide →
F
Fair Consideration Framework (FCF)
MOM’s requirement that employers advertise jobs on MyCareersFuture for a minimum period and consider Singaporean candidates fairly before applying for an Employment Pass. Read the full guide →
Foreign Worker Levy (FWL)
A monthly fee employers pay to MOM for each Work Permit or S Pass holder, with rates varying by sector, skill tier and quota usage. Read the full guide →
G
Garden Leave
A period where a resigning or terminated employee is asked to stay away from work (while still paid) during their notice period, often to protect confidential information. Read the full guide →
Grievance Handling
The internal process an employer uses to receive, investigate and resolve employee complaints before they escalate to TADM or the ECT.
I
Industrial Relations Act (IRA)
Legislation governing collective bargaining, trade disputes and the registration of collective agreements between unions and employers.
IR8A
The annual form employers must submit to IRAS reporting each employee’s income, used for individual income tax filing. Read the full guide →
IRAS
The Inland Revenue Authority of Singapore — the government body responsible for tax collection, including employment income tax. Read the full guide →
K
Key Employment Terms (KETs)
The core terms of employment — salary, hours, leave, job title and more — that the Employment Act requires employers to issue in writing within 14 days of starting work. Read the full guide →
L
Long-Term Visit Pass (LTVP)
A pass allowing extended stay in Singapore for unmarried parents, common-law spouses or other dependants not covered by a standard Dependant’s Pass. Read the full guide →
M
Man-Year Entitlement (MYE)
The quota system controlling how many Work Permit holders a construction, process or marine sector employer may hire, tied to project value. Read the full guide →
Maternity Leave
Paid leave for eligible mothers around childbirth — 16 weeks for Singapore Citizen children meeting qualifying conditions, funded partly by the government. Read the full guide →
Medical Certificate (MC)
A document from a registered doctor certifying an employee is unfit for work, which employees must generally produce to claim paid sick leave. Read the full guide →
Medisave
The healthcare savings component of CPF, used to pay for hospitalisation, approved outpatient treatments and MediShield Life premiums. Read the full guide →
N
National Wages Council (NWC)
A tripartite body of government, employer and union representatives that issues annual, non-binding wage guidelines for the Singapore economy.
Notice Period
The advance warning either party must give before ending employment, as set out in the contract or, if silent, under the Employment Act’s default scale. Read the full guide →
NTUC
The National Trades Union Congress — Singapore’s national federation of trade unions, representing unionised workers in negotiations and disputes.
O
Ordinary Wage (OW)
An employee’s fixed monthly wage, used as the base for calculating monthly CPF contributions up to the OW ceiling. Read the full guide →
P
Paternity Leave
Paid leave for eligible working fathers around the birth of a child, currently shorter in duration than maternity leave and partly government-funded. Read the full guide →
Personal Data Protection Act (PDPA)
Singapore’s data protection law, which governs how employers collect, use, disclose and store employees’ and candidates’ personal data.
Probation
A trial period at the start of employment, typically 3 to 6 months, during which either party may usually end the contract on shorter notice. Read the full guide →
Progressive Wage Model (PWM)
A sector-based wage ladder that sets minimum pay tied to skills and productivity for lower-wage occupations such as cleaning, security and landscaping. Read the full guide →
Public Holiday
One of the gazetted holidays each year on which most employees are entitled to a paid day off, or extra pay if required to work. Read the full guide →
R
Re-employment Age
The age up to which employers must offer re-employment to eligible employees who turn the statutory retirement age, subject to health and performance. Read the full guide →
Rest Day
One day each week that an employee is not required to work, as guaranteed under the Employment Act for covered employees. Read the full guide →
Restrictive Covenant
A contract clause — such as a non-compete or non-solicitation clause — limiting what an employee can do during or after employment. Enforceability depends on reasonableness. Read the full guide →
Retirement Age
The minimum age at which an employer may require an employee to retire, set by statute and reviewed periodically by MOM. Read the full guide →
Retrenchment
The termination of employment because a role is made redundant, distinct from dismissal for performance or conduct. May trigger retrenchment benefit obligations. Read the full guide →
Retrenchment Benefit
A payment some retrenched employees are entitled to, based on contract terms or, in their absence, prevailing norms and length of service. Read the full guide →
S
S Pass
A work pass for mid-skilled foreign employees, subject to a qualifying salary, sector quotas and levy payments. Read the full guide →
Salary in Lieu of Notice
A payment equal to the notice period’s wages, made instead of requiring the employee to actually work out that notice. Read the full guide →
Security Bond
A bond some employers are required to furnish to MOM for certain Work Permit holders, forfeited if conditions such as repatriation aren’t met. Read the full guide →
Shared Parental Leave
Leave that allows an eligible father to share a portion of the mother’s government-paid maternity leave, subject to the mother’s agreement. Read the full guide →
Sick Leave
Paid leave for certified illness, with separate annual entitlements for outpatient sick leave and hospitalisation leave under the Employment Act. Read the full guide →
Skills Development Levy (SDL)
A mandatory monthly levy employers pay on employees’ wages, funding workforce training initiatives administered through SkillsFuture. Read the full guide →
SkillsFuture
A national movement providing Singaporeans with funding and resources for lifelong learning and skills upgrading, including individual training credits.
Statutory Board
A government agency, such as MOM or IRAS, established by an Act of Parliament to carry out specific public functions, including employment regulation.
T
TAFEP
The Tripartite Alliance for Fair and Progressive Employment Practices — promotes fair hiring and can investigate discriminatory job ads or practices. Read the full guide →
Termination
The ending of an employment contract by either the employer or employee, whether by notice, mutual agreement, expiry or summary dismissal. Read the full guide →
Trade Disputes Act
Legislation governing the resolution of disputes between employers and registered trade unions, including provisions on lawful industrial action.
Tripartite Alliance for Dispute Management (TADM)
The government agency that mediates salary and employment-related disputes before they proceed to the Employment Claims Tribunal. Read the full guide →
U
Union
A registered organisation representing employees’ collective interests in negotiations with employers over pay, terms and working conditions.
V
Variable Wage Component (VWC)
The portion of total wages, such as bonuses, that can flex with business performance — recommended by the NWC to help firms manage costs without cutting base pay. Read the full guide →
W
Wage Ceiling (CPF)
The maximum wage amount on which CPF contributions are calculated each month (Ordinary Wage ceiling) or year (combined ceiling including Additional Wage). Read the full guide →
WICA
The Work Injury Compensation Act — a no-fault scheme letting injured employees claim compensation from their employer without filing a civil suit. Read the full guide →
Work Permit (WP)
A work pass for semi-skilled foreign workers in sectors such as construction, manufacturing, marine and domestic work, subject to levy and quota rules. Read the full guide →
Workplace Fairness Legislation (WFL)
New legislation prohibiting workplace discrimination on protected characteristics such as age, race, sex, disability and more, with a phased rollout. Read the full guide →
Written Employment Contract
A signed agreement setting out the terms of employment. Not always legally required in full, but strongly recommended alongside the mandatory KETs. Read the full guide →
Wrongful Dismissal
A dismissal carried out unfairly — for example, without due inquiry into alleged misconduct — which an employee can challenge through TADM and the ECT. Read the full guide →