The landscape of employment law in Singapore has undergone a significant transformation. In August 2025, the Ministry of Manpower (MOM) announced the formation of a Tripartite Workgroup (TWG) to conduct a comprehensive review of the Employment Act 1968, Singapore’s principal labour statute that governs the employment rights and obligations for almost all employees in the country.
Final recommendations aren’t expected until the second half of 2026, but as an SME, don’t wait until then as you may find yourselves scrambling to catch up. This review comes at a time when the employment law framework is evolving on multiple fronts, including the rollout of the Workplace Fairness Act and enhanced enforcement mechanisms.
What’s Happening and Why
The TWG brings together representatives from three stakeholders.
- Ministry of Manpower (MOM)
- National Trades Union Congress (NTUC)
- Singapore National Employers Federation (SNEF)
This approach ensures that any proposed changes balance the interests of workers, employers, and the broader economy.
Co-chaired by MOM’s Permanent Secretary Mr Ng Chee Khern, NTUC’s Deputy Secretary-General Ms Cham Hui Fong, and SNEF’s Vice President Mr Kuah Boon Wee, the TWG held its first meeting on 4 August 2025.
The group is expected to complete its work and submit recommendations to the Government by the second half of 2026, with stakeholder consultations planned throughout the review period.
The last comprehensive update to the EA was in 2019, though subsequent amendments have been made over the years. Much has changed since then, so this review is both timely and necessary.
What Drove This Review
The TWG has been tasked with examining how the EA can be updated to account for several significant shifts.
- The workforce is ageing. There are more Professionals, Managers, and Executives (PMEs) than ever before. The employment protections and frameworks that worked for a predominantly rank-and-file workforce may need adjustment to reflect this new reality.
- The rise of flexible work arrangements, remote work, gig economy roles, and non-traditional employment relationships has created ambiguity around who is covered by the EA and how protections should apply.
- Singapore needs to stay attractive for business while ensuring that it protects workers’ rights. Because the workforce is not growing quickly, it’s becoming harder to strike the right balance between business needs and worker protection.
- The review also wants to make the law simpler and reduce unnecessary paperwork or costs for businesses, especially small and medium enterprises (SMEs) that may not have many resources.
The Review’s Guiding Objectives
The TWG’s work will be guided by three core objectives.
- Safeguarding basic employment standards
- Balancing the interests of businesses and workers
- Preserving a well-functioning labour market
As Mr Ng Chee Khern noted, “It is timely to review the EA to ensure it remains fit-for-purpose amidst major shifts in the labour environment… The Workgroup will continue building on our strong foundation of tripartism to develop win-win outcomes that preserve Singapore’s competitiveness and protect the interests of both employers and workers.”
What SMEs Should Expect
We still don’t know the recommendations until 2026, but what we can do now is to understand the scope of the review and examine past changes.
Currently, the EA covers approximately 70% of the workforce. The Act provides comprehensive protection to “workmen” (manual workers and those earning up to SGD 4,500 per month) and more limited protection to other employees under certain salary thresholds.
Part IV of the EA, which covers rest days, working hours, overtime payment, and holidays, currently applies to:
- Workmen earning up to SGD 4,500 per month
- Non-workmen earning up to SGD 2,500 per month
The EA specifically excludes certain categories of employees, including seafarers, domestic workers, and statutory board employees. It also doesn’t cover those deemed capable of negotiating their own employment terms.
What Might Change
The TWG will review if the existing rules about who is covered by the Act still make sense today.
Since there are now more professionals, managers, and executives in the workforce, the group might suggest the following:
- Expanding protection for PMEs under the Act, while
- Allowing highly skilled professionals to still have the freedom to negotiate their own employment terms.
Making Compliance Easier for Businesses
A key goal of the review is to simplify the Employment Act so that it is easier and cheaper for companies to follow the rules. This would be helpful for SMEs which may not have full HR teams.
What this could mean:
- Less paperwork and simpler forms
- Clearer instructions on what businesses need to do
- Fewer overlapping or confusing rules
- Easier-to-use tools and resources to help employers stay compliant
Learning from Past Reviews
The 2013 amendments to the EA, which rolled out in 2014, show how Singapore usually updates its labour laws.
- More employees became protected under the law when the salary limit was raised from S$2,000 to S$2,500, matching general pay increases.
- The law not only helped protect more workers, but it also helped employers manage costs by setting a cap on overtime pay.
- New rules like itemised payslips were introduced slowly—first as guidelines, then made into law—so businesses had time to adjust.
- Heavier penalties were introduced for serious offences like not paying salaries on time.
Concurrent Developments
Small and medium enterprises (SMEs) also need to be aware of other major updates in employment laws.
Workplace Fairness Act – Second Bill
This is the first anti-discrimination law, which is being introduced in two parts.
The first bill, passed in January 2025, defined what counts as workplace discrimination and set basic rights and responsibilities.
The second bill, still being discussed, will cover how disputes are handled — and this is where major changes are expected.
The “SGD 250,000 Question”
The Ministry of Manpower (MOM) proposed that employees can bring workplace fairness claims worth up to SGD 250,000 to the Employment Claims Tribunal (ECT).
That is a huge jump, more than 10 times higher than the earlier proposed limits (which were only up to SGD 20,000-30,000).
This means employers could now face much bigger financial risks in discrimination-related cases.
How Disputes Will Be Handled (Two-Tier Process)
Here is how the process might work.
- Try to resolve the dispute internally first. Employees must use the company’s own grievance or HR process.
- If that doesn’t work, they can go to the ECT, but mediation is required before any ruling.
- Even during the case, both sides should keep trying to resolve things amicably.
What This Means for SMEs
- Strong HR processes are now essential, not optional.
- The risk of big financial claims for discrimination is much higher.
- Private hearings can help protect the reputation of the company involved.
- Good HR documentation can act as protection or “insurance” against costly cases.
Workplace Conduct & Compliance
Employers are also expected to keep up with new behaviour-related laws.
Example:
After the NDR 2025 or National Day Rally 2025, vaping was made a serious offence. Some chemicals are now Class C drugs. MOM told companies to set clear HR policies on vaping, with disciplinary actions for violators.
Companies are now expected to have clear and updated policies on all types of workplace behaviour and legal compliance.
Your Next Steps
Do not wait for 2026 before starting your compliance audit. Do it today, and seek the guidance of professionals to make sure that you do not miss critical gaps.
You should view the EA review as an opportunity, not as a pure obligation. By doing so, you are able to strengthen your HR foundations and build a competitive advantage.
At Corporate Services Singapore, we can help you prepare for the Employment Act review and discuss with you other employment law changes. We have a full range of corporate services—from outsourced accounting services to corporate secretarial services.
Contact us today for a confidential consultation.
