Probation Period in Singapore
Explore everything you need to know about the probation period in Singapore, from legal requirements to key benefits.
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If you’re an employer, the thought of taking on new workers might fill you with worry. After all, while you do your best to source the top talent you can from a select group of candidates, you have no way to really know how well they’ll do in their new roles. They may or may not live up to the way they’ve represented themselves in their applications and interviews. Likewise, employees have cause to worry as well. They have to trust that the job and working conditions the employer promised will live up to their expectations. Probation periods are a way to calm these worries.
In this guide, we’ll see how probation periods in Singapore are used and regulated to help both employers and employees reach their goals.
Definition of a Probation Period in Singapore
A probation period in Singapore is considered to be a very important phase of employment. In this initial phase, a worker is watched carefully and assessed on how well they perform their job and fit into the company culture. They may be given help to develop their weaknesses during this time so that by the end of the probation period, they are fully functioning, high-value employees. Employees also use probation periods to assess their roles, working conditions, and whether or not they’ll thrive in their jobs moving forward.
Employment in Singapore is contract-driven and because there are few rules in place to define and regulate probation periods, contracts play a guiding role. The details of each employee’s probation period in Singapore must be written clearly into their contract so both parties know what to expect.
Lengths of Probationary Periods in Singapore
There is no minimum or maximum length for probation periods explicitly included in Singaporean law. Therefore, it is at the full discretion of the employer, with the agreement of the employee, how long to make probation periods. The typical length used in Singapore is between three to six months. This is normally seen as a fair length of time for both employers and employees to accurately assess the future of their employment relationship.
However, many employers will also add the possibility of extending probation to their employment contracts. Extensions are then used if the first period is deemed unsuccessful, but the employer believes the employee can improve with a further period of probation.
It’s also possible for Singaporean employers to enact ongoing probation which will continue without limit until the employer officially agrees to retain or terminate the employee. In any case, retention or termination should be provided by the employer in writing.
Legal Considerations of Probation Periods in Singapore
Most countries have clear rules in place to regulate probationary periods including limits on their duration as well as employee pay, benefits, and notice periods during them. These regulations tend to temporarily reduce employee protections and give employers more leeway to make their final long-term decisions.
While employment in Singapore is governed by the Employment Act 1968 (EA), this act does not explicitly regulate most aspects of probation periods, leaving them instead up to the employer.
Pay and Working Conditions
An employee’s pay, working hours, and overtime rules during probation must be stated in their contract. Unlike in many other countries, it’s possible for an employer in Singapore to set a probationary worker’s pay lower than what it would be once probation is complete. This salary would then be increased on successful completion of the probation.
Employers can also ask probationary employees to work longer hours and then reduce them once probation is complete, though regular hours can’t exceed nine per day or 12 per day, including overtime.
These different conditions during and after probation reflect the employer’s view that the employee is not yet functioning at full capacity and, therefore, not producing full value for the company.
Termination and Notice
During or at the end of a probation period, Singaporean employers can choose to terminate employees who don’t prove successful in their positions. They must follow the terms of dismissal written into their employment contracts, which may or may not require good reasons to justify their terminations. Employees must also follow the contractual conditions if they wish to resign.
Notice periods must also be included in contracts. If they are not, however, then the standard rules of Section 10 EA apply. The notice periods for both employees and employers must be the same and cannot be less than:
| Length of Employment | Notice Period |
|---|---|
| Less than 26 weeks | 1 day |
| 26 weeks to less than 2 years | 1 week |
| 2 to less than 5 years | 1 week |
| 5 years or more | 1 week |
Vacation / Holidays
Singaporean workers are entitled to 11 paid public holidays each year and this includes probationary employees. They’re also initially entitled to a minimum of seven days of paid annual leave but only after they have worked for their employer for three months. Each month, workers accrue 1/12 of their leave entitlement but probationary workers can only begin to use this leave after three months of work.
Benefits of Probation Periods in Singapore
Including probation periods in employment contracts is standard in Singapore. They can produce benefits for both parties, including:
- For Employees
Opportunity to try out new roles before making long-term commitments.
Easier and faster to resign if desired.
- For Employers
Easier and faster to dismiss new workers who don’t fit well into the company culture.
Chance to assess employees’ skills and ensure they’re appropriate for their positions.
Can save money by paying lower-productivity employees less or asking them to work more during probation.
Frequently Asked Questions
No, and they’re not mandatory in the country. However, they are very commonly used and most employers find them advantageous as they give them more flexibility for dismissing workers who don’t perform well.
Probation periods normally last three to six months so both employers and employees normally have to provide only one day’s notice to the other party if the employee has worked fewer than 26 weeks.
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