Once a small company grows past a handful of people, the same questions keep arriving. How do I apply for leave? Can I work from home on Fridays? Who do I tell if I am sick? An employee handbook in Singapore answers those questions once, in writing, so that every staff member gets the same answer and managers stop making it up on the spot.
This guide focuses on the handbook itself: what to put in it, how to word it, and how to keep it consistent with your employment contracts. If you have not yet hired, start with our guide to hiring your first employee in Singapore, which covers contracts, CPF and work passes.
This is general information, not legal advice. Employment rules change, so check current requirements with the Ministry of Manpower (MOM) and the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) before you finalise anything.
What a Handbook Does (and What It Does Not Do)
A handbook is the company’s rulebook for day to day working life. It explains how things work in your business: hours, leave, claims, conduct, IT use, safety and how problems are raised and handled.
Here is how it fits with other documents:
- The employment contract sets out the individual terms agreed with each person, such as salary, job title and notice period.
- Key Employment Terms (KETs) are the core terms MOM requires employers to give in writing to employees covered by the Employment Act. The handbook does not replace them.
- The handbook sets out company-wide policies that apply to everyone, and can be updated as the business changes.
A common approach is for each contract to say that the employee must follow company policies as set out in the handbook, as amended from time to time. Ask an employment lawyer or HR adviser how to word that link for your situation, because it affects which parts can be changed later without fresh agreement.
The most important rule: the handbook can be more generous than the law, never less. If your leave or overtime policy gives less than the Employment Act requires for that employee, the law wins and the policy is simply wrong.
The Core Sections to Include
You do not need a huge document. For most SMEs, a clear, compact handbook covering these areas is enough.
Working hours and attendance
State normal working hours, lunch breaks, how attendance is recorded and what to do if you are going to be late. If some roles work shifts or weekends, explain how rest days are set. Keep overtime wording aligned with your contracts and with MOM’s rules for employees covered by the Employment Act.
Leave policies
This is the section staff read most. Cover each type of leave you offer and, for each one, explain how to apply, who approves it and how much notice is needed:
- Annual leave, including whether unused days can be carried forward or encashed
- Sick leave and hospitalisation leave, and what medical certificate is accepted
- Statutory family leave such as maternity, paternity, shared parental and childcare leave
- Any extra leave you choose to give, such as birthday leave, study leave or volunteer days
- Public holidays, and what happens if one falls on a rest day
Do not copy entitlement numbers from memory or from an old template. Statutory entitlements depend on length of service and other conditions, and government-paid family leave schemes have been changing in recent years. Point staff to MOM for the statutory baseline and state your own policy clearly on top of it.
Code of conduct
Explain the behaviour you expect in plain language: respect for colleagues and clients, honesty, punctuality, dress expectations, conflicts of interest, accepting gifts, and use of company property.
Fair employment and anti-harassment
Set out your commitment to fair treatment in hiring, promotion and day to day management, and how staff can report harassment or discrimination safely. TAFEP publishes tripartite guidelines and resources on fair employment and on grievance handling, and Singapore has passed workplace fairness legislation. Check TAFEP and MOM for which requirements are in force and what they mean for a company your size.
Flexible work arrangements
If you allow remote work, flexible hours or compressed weeks, say how staff can request them and how requests are assessed. Singapore has tripartite guidelines on how employers should handle formal flexible work requests, so check the current version on TAFEP’s website and make sure your process follows it.
Claims, benefits and IT
Cover medical benefits and how to claim, transport and client entertainment claims, training support, and rules for laptops, passwords, email and social media. If you handle customer data, add a short reminder of personal data responsibilities under the Personal Data Protection Act and point staff to your data protection officer.
Grievances, discipline and leaving
Explain how to raise a concern, who handles it and roughly what happens next. Describe your disciplinary steps in a fair, consistent order, and how resignation, notice and the return of company property work.
A Quick Comparison: Policy, Contract or Law?
Small business owners often mix up where a rule should live. This table helps you decide.
| Topic | Where it usually belongs | Why |
|---|---|---|
| Salary, job title, notice period | Individual contract and KETs | Specific to each person and agreed with them |
| Statutory leave and overtime baseline | The law, referenced in the handbook | You cannot go below it, so link to MOM rather than restating figures |
| Extra leave, WFH rules, dress code | Handbook | Company-wide and likely to change as you grow |
| Disciplinary and grievance process | Handbook | Needs to be applied the same way to everyone |
| Confidentiality and IP ownership | Contract, with a reminder in the handbook | Usually needs the employee’s signed agreement |
How to Write It So People Actually Read It
A handbook that nobody opens does not protect anyone. A few habits make a real difference:
- Write as you speak. “Tell your manager before 9am if you are unwell” beats “Employees shall notify their reporting officer forthwith.”
- Use headings and short lists. People search for one answer at a time.
- Give one owner per policy. Name the role (not the person) who approves leave, handles claims and receives complaints.
- Add a version number and date on the cover, plus a short change log at the back.
- Translate where it helps. If some staff are more comfortable in Mandarin, Malay or Tamil, a translated summary helps understanding, but state which language version prevails.
- Keep it consistent. Search the draft for any figure that also appears in contracts, and make sure the two match.
If the handbook is part of a wider people plan, our guide to creating a career development plan is a useful companion for managers holding growth conversations.
Rolling It Out and Keeping It Current
When the handbook is ready:
- Walk new and existing staff through the key sections, especially leave, conduct and how to raise concerns.
- Ask each employee to acknowledge in writing that they have received and read it, and keep that record.
- Store the current version somewhere everyone can find it, such as a shared drive or HR system.
Review it at least once a year, and sooner when MOM, CPF Board or TAFEP announces relevant changes. When you update it, tell staff what changed and why. For changes that reduce a benefit staff currently enjoy, get advice first, because this may need consultation or agreement.
Common Mistakes Small Companies Make
- Using an overseas template that cites laws and holidays that do not apply here.
- Writing in leave numbers that are below the statutory minimum for some staff.
- Promising things the business cannot actually deliver, such as guaranteed bonuses.
- Letting managers apply rules differently for different people.
- Never updating the document after the first version.
A well-kept handbook saves time, reduces arguments and shows staff that the business is run fairly. Start small, write clearly, check the official sources, and improve it every year.
Official sources: Ministry of Manpower (MOM)