A Singapore company does not have to publish an employee handbook, but once it has more than a handful of staff, a handbook is the practical way to set out how leave, flexible work requests, grievances, harassment complaints, discipline and personal data are handled. The handbook should sit alongside the employment contract, not repeat it. The key drafting decision is which parts are contractual and which are policies the company can update. Getting that split wrong is what causes disputes when the company later tries to change a benefit or rely on a procedure.
What belongs in the contract, and what belongs in the handbook?
Think of the contract as the individual deal and the handbook as the company’s rulebook. The contract records what is personal to the employee and hard to change. The handbook records how the workplace runs for everyone.
| Item | Usually in the contract | Usually in the handbook |
|---|---|---|
| Job title, salary, allowances, working hours, notice period | Yes | No |
| Restrictive covenants and confidentiality | Yes | Short reminder only |
| Leave entitlements | Headline entitlement | How to apply, approval, carry-forward rules |
| Medical benefits | Headline benefit | Claims procedure and limits |
| Flexible work requests, grievances, harassment, discipline | Reference to the handbook | Full procedure |
| IT use, social media, data protection, expenses, conduct | Reference to the handbook | Full policy |
Many companies use the handbook to deliver some Key Employment Terms (KETs). MOM’s FAQ on KETs in handbooks says employers need not issue KETs separately if they are already in the handbook, website or similar platform, provided employees can access them, and any KETs not covered there must still be issued. Our guide to employment contracts in Singapore lists the KETs and the 14-day deadline for issuing them.
Should the handbook be contractual or non-contractual?
This is the most important drafting choice, and many handbooks never make it. If a policy is contractual, it forms part of each employee’s terms and generally cannot be changed without their agreement. If it is non-contractual, it is guidance the company can revise, as long as it acts reasonably and does not cut below the law or the contract.
A sensible approach for most SMEs:
- State the position at the front. Say that the handbook is not part of the contract except for named sections, and that the company may update it from time to time.
- Make only what you must contractual. Leave entitlements above the statutory minimum and benefit levels are often contractual because they are promised in the contract. Procedures such as grievance handling and discipline are usually better kept non-contractual so they can be improved.
- Match the contract. The contract should refer to the handbook and say which document wins in a conflict, normally the contract.
- Do not over-promise in procedures. A disciplinary policy that says the company “will” hold three hearings creates an expectation it may later be held to. Describe the steps you will genuinely follow.
Whether a particular clause is contractual ultimately depends on its wording and how it was communicated, not just the label. Changes to pay, hours and other core terms need employee agreement, even where the change appears only in a handbook update.
Which policies should a Singapore handbook cover?
| Policy | What drives it | Drafting note |
|---|---|---|
| Leave | Employment Act minimums and the contract | Never state less than the statutory entitlement; explain how to apply and what evidence is needed for sick leave |
| Flexible work requests | Tripartite Guidelines on Flexible Work Arrangement Requests, in effect from 1 December 2024 | Set out how to make a formal request and that a written decision will be given within two months |
| Grievance handling | Tripartite Guidelines on Fair Employment Practices now; Workplace Fairness Act expected to take effect at end-2027 | A written process to inquire, review, inform the employee of the outcome and keep matters confidential |
| Workplace harassment | Tripartite Advisory on Managing Workplace Harassment | Reporting channels, investigation steps and protection from retaliation |
| Personal data | Personal Data Protection Act 2012 (PDPA) | Notice of the purposes for which employee data is collected, including monitoring of company systems |
| Discipline | Employment Act requirement for a due inquiry before misconduct dismissal | Allegation in writing, chance to respond, impartial decision-maker |
| Conduct and conflicts of interest | Duty of fidelity and the contract | Declaration of outside work, gifts and personal interests |
| IT, social media and expenses | Company policy | Acceptable use, ownership of accounts and data, claim deadlines |
How should the flexible work and grievance sections be written?
Flexible work. The Tripartite Guidelines on FWA Requests took effect on 1 December 2024. They do not require employers to approve every request, but they expect a process for formal requests, and TAFEP’s guide for employers says a written decision should be given within two months, with reasons if the request is declined. Your handbook should tell employees how to submit a formal request, what information to include, who decides, and how the outcome will be communicated. Our employer’s guide to flexible work arrangements covers assessing the requests themselves.
Grievances. TAFEP’s guidance on the Workplace Fairness Act says the Act takes effect at the end of 2027 and requires a written process committing the organisation to inquire into and review each grievance, communicate the outcome, keep records and protect confidentiality, with employees informed of the process in writing. MOM’s fact sheet on the Workplace Fairness Bill says firms with fewer than 25 employees will be exempt from the legislation at the start, but the Tripartite Guidelines on Fair Employment Practices continue to apply to them. The fact sheet also says the law protects those who report from retaliation. A handbook is the obvious place to publish this process now, well before the Act starts. For the wider obligations, see our guide to the Workplace Fairness Act.
A workable grievance section covers:
- What counts as a grievance and who can raise one
- At least two channels, so an employee is not forced to complain to the person complained about
- Who will look into it and how the employee will be kept informed
- Confidentiality, and a clear statement that raising a grievance in good faith will not lead to adverse treatment
- How records are kept
What should the data protection section say?
The PDPA allows an employer to collect, use and disclose employee personal data that is reasonable for entering into, managing or terminating the employment relationship without consent. The PDPC’s Advisory Guidelines on the PDPA for Selected Topics make clear that employers must still notify employees of those purposes, and that general notification through employment contracts, employee handbooks or the intranet may be sufficient.
The handbook section should therefore explain what data the company holds, why, who it is shared with (payroll providers, insurers, MOM, CPF Board and IRAS where required), how long it is kept, and that company email, devices and network use may be monitored for security and compliance. Name your data protection officer and how to contact them. For the payroll and HR side, see our article on PDPA obligations for HR and payroll.
How do you roll out a new handbook?
- Collect what you already have. Gather every contract template, offer letter, policy email and intranet notice. Old promises in these documents may already be contractual.
- Map conflicts. Check each draft policy against the contracts. If the contract promises 18 days’ leave and the handbook says 14, the contract will usually prevail and the handbook will cause confusion.
- Draft in plain English. Short sections, numbered paragraphs and a contents page. Staff should be able to find the leave process in under a minute.
- Get the legal sections reviewed. Discipline, grievance, harassment and data protection sections carry the most legal risk.
- Brief managers first. Managers apply the policies. If they do not understand the grievance or FWA process, the written policy will not protect the company.
- Issue it with an acknowledgement. Ask each employee to confirm in writing or electronically that they have received and can access the handbook. Keep the acknowledgements.
- Record the version. Date each version and keep superseded copies. In a dispute you will need to show which version applied at the time.
How do you change the handbook later?
For non-contractual policies, give reasonable notice of the change, explain it, and record the new version. For anything that is contractual, or that reduces an existing benefit, treat it as a change to terms and obtain the employee’s agreement in writing. Avoid quiet edits to an intranet page: if a procedure changes mid-investigation, the employee may argue that the older, more generous version applies.
Documents checklist
- Current contract and offer letter templates
- The handbook, with version date and a statement on its contractual status
- KETs not covered by the handbook, issued separately
- FWA request form and decision letter template
- Grievance form and outcome letter template
- Harassment reporting form
- Employee data protection notice and the data protection officer’s contact details
- Disciplinary letter templates: notice of allegations, invitation to inquiry, outcome
- Employee acknowledgement records
Example: a growing company formalises its policies
Example: a hypothetical design agency has grown from 12 to 28 staff. Its policies are spread across WhatsApp announcements and old emails. Two employees have asked to work from home two days a week, and a team member has complained about a manager. The founders decide to issue a handbook. They make leave and medical benefits contractual by referring to them in each contract, and keep the FWA, grievance, harassment, discipline and IT sections non-contractual. Because the agency now has more than 25 employees, the founders prioritise a written grievance process with two reporting channels, ready for the Workplace Fairness Act. They brief the two team leads, issue the handbook through the HR system with an electronic acknowledgement, and decide the pending FWA requests under the new process with written outcomes.
Frequently asked questions
Is an employee handbook legally required in Singapore?
No law requires a document called a handbook. However, several obligations are much easier to meet with one, including notifying employees of data protection purposes, having a process for formal FWA requests, and, once the Workplace Fairness Act applies to your company, informing employees of the grievance process in writing.
We have fewer than 25 employees. Do we still need a grievance process?
MOM has said firms with fewer than 25 employees will be exempt from the Workplace Fairness legislation at the start, but the Tripartite Guidelines on Fair Employment Practices still apply to them. A simple written grievance process remains good practice and helps you handle complaints fairly.
Do employees have to sign the handbook?
A signature is not strictly required for a non-contractual policy, but a written or electronic acknowledgement is valuable evidence that the employee received it. For contractual changes, get express agreement.
If the handbook and the contract disagree, which applies?
Usually the contract, especially if it says so. Avoid the problem by checking every handbook entitlement against your contract templates before issuing it.
Can the disciplinary section let us skip an inquiry for serious misconduct?
No. The Employment Act requires a due inquiry before dismissing for misconduct without notice, and a handbook cannot remove that. Our article on dismissing an employee for misconduct explains what an inquiry involves.
Need help with your employee handbook?
If your company, or you as a director or shareholder, is dealing with writing, updating or relying on an employee handbook, contact the Raffles Corporate Services team at [email protected] or on WhatsApp at +65 8501 7133 or +65 9018 0072. We will help you understand the documents and deadlines. Where your matter needs a lawyer, we will refer you to a firm on our panel of Singapore law firms that regularly handles employment law. Raffles Corporate Services is a corporate services provider, not a law firm, and this article is general information, not legal advice.
The Raffles Corporate Services Editorial Team, Raffles Corporate Services