Congratulations! You have successfully used our Singapore company registration services to complete the process of register company in Singapore. The next step that you need to take is to hire employees to help you carry out various tasks. Just like the registration process, there are legal protocols that employers and staff need to abide by always. All these regulations are well articulated in the Singapore Employment Act.
Here is a brief overview to guide you through the hiring process.
An employment contract is one of the most important document as it articulates the terms and conditions that govern the relationship between the employer and employee. Even though it is possible to draft your own company contract, it is highly advisable to consult a professional human resource consultant or lawyer. Note that the contract terms have to comply with the minimum requirements defined in the Employment Act.
Reporting Employees Earnings
As the owner of the newly incorporated private company in Singapore, you are required by law to prepare tax forms for all staff working at your Singapore office. Also, you should submit details of their remuneration per year as stipulated in the Income Tax Act.
Foreign Employees Tax Issues
A tax clearance is required for foreign employees who are transferred to overseas, leave the country for a period exceeding three months, or cease employment with you. This law is there to ensure that the employees in any of the three categories pay their taxes.
Employers are also required to notify IRAS, Singapore tax authority, and withhold all payments due to the foreign employees from the day that they resign or their employment is terminated. You can only release salaries to these employees once IRAS assesses and issues a tax clearance certificate as proof that all taxes have being paid.
Foreign companies that have been registered with the Registrar of Companies can hire students who are citizens of Singapore on a part-time or full-time basis without any restrictions. Unless exempted, the students are entitled to CPF contributions. However, CPF contributions are not required for students who are working as interns in the company.
On the other hand, international students are not permitted to work in the country during vacation or term time unless they are issued a Work Pass exemption. If you intend to hire international students as interns in the company, you are required to apply for a Training Work Permit or Training Employment Pass on their behalf.
The legal age to work in the country is currently 17 years. That said, you are allowed to hire young persons who are between the age of 13 years and 16 years, but there are restrictions on the type of work that they can perform. Finally, the retirement age in Singapore is 62 years.