What are Employee Share Schemes?
An Employee Share Scheme gives employees an opportunity to participate in the growth / valuation of a company by either:
- giving employees the right to purchase shares in the company at a specific predetermined price within a set timeframe;
- granting employees shares in the company at no consideration over a vesting period or after a period of working with the company; or
- granting employees with “phantom share units” which are a proxy of the value of the underlying shares in the company
A well-structured employee share scheme can serve to align the interests of a company's employees and its founders/shareholders, and may be used as an effective form of remuneration in addition to salary, bonuses and benefits to attract and retain talent.
How We Can Help?
When executed thoughtfully and managed effectively, employee share options can catalyze sustainable growth, benefiting both employees and the business as a whole.
For businesses in Singapore seeking to implement or refine their share scheme, Kinetica’s services offer a reliable end-to-end solution. With a deep understanding of the local business landscape, we can assist in creating, implementing, and managing employee share schemes that align with your organization’s goals and values.
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What is an Employee Handbook?
An employee handbook is a collection of policies, procedures, working conditions, and behavior expectations in your business. It's a way to create clarity for both employees and management about the company's business philosophy and expectations concerning the management of the company's human resources. A well-written handbook with clearly defined and consistently implemented policies (to address matters such as fair employment practices; workplace conduct; grievance handling; health and safety; data protection; and dealings with suppliers, competitors and customers) can foster a stronger, more positive company culture, and reduce the company's legal and operational risks. Individual departments may have their own protocols, but the primary purpose of an employee handbook is to provide a solid foundation for the entire business. You don't need a physical handbook; it can be stored electronically and shared online if everyone can access it easily. Just make sure all the employees acknowledge that they have reviewed the handbook and agree to follow the policies.
Objectives of Employee Handbook
Communicate your mission, vision and values
State company policies and expectations
Ensures company policies are consistently enforced
Sets clear expectations for employee conduct and performance
Provides information about where employees can turn for help
Helps minimize conflict
How We Can Help?
Creating an Employee Handbook can assist in managing your employees and establishing clear expectations regarding the business, professional conduct, and performance.
Kelvin Chia Partnership, the law firm with which we are associated, has assisted several clients in drafting and reviewing their employee handbooks. Email us to explore how we can aid in drafting and reviewing your employee handbook.
What is an Employment Contract?
An employment contract is an agreement between the Employer and the Employee. It governs their relationship and is enforceable by law. Both parties must agree to the contract willingly for it to be enforceable. Contracts have terms that cover different aspects of the employer-employee relationship. Terms can be expressed (clearly stated in the contract) or implied (not explicitly stated but still considered part of the contract).
Key Employment Terms
Under the Ministry of Manpower's rules, employers must issue KETs in writing to all employees who meet the following requirements:
- Enter into a contract of service on or after 1 April 2016
- Are covered by the Employment Act
- Are employed for 14 days or more - this refers to the length of contract, not the number of days of work
KETs must include the following items, unless it is not applicable to the employee.
List of Key Employment Terms
| Full name of employer. | Overtime rate of pay. |
| Full name of employee. |
Other salary related components, such as:
|
| Job title, main duties and responsibilities. | |
| Start date of employment. |
Type of leave, such as:
|
| Duration of employment (if employee is on fixed-term contract). | |
| Working arrangements, such as: Daily working hours (e.g. 8.30am – 6pm). | |
| Number of working days per week (e.g. six). Rest day (e.g. Saturday). |
Other medical benefits, such as:
|
| Salary period. | |
| Basic salary. | Probation period. |
| For hourly, daily or piece-rated workers, employers should also indicate the basic rate of pay (e.g. $X per hour, day or piece). | Notice period. |
| (Optional) Place of work. Used if the work location is different from the employer’s address. Although optional, you are strongly encouraged to include this info. | |
| Fixed allowances. | |
| Fixed deductions. | |
| Overtime payment period (if different from item 7 salary period). |
Source: MOM website
A more elaborate employment contract may contain provisions to address additional matters or specific contingencies, depending on the nature of the work, and the designation and seniority of the employee in question. This may include clauses applicable to foreign employees; undertakings for the assignments of intellectual property; confidentiality provisions; and post terminations restrictions in the form of non-compete and/or non-solicitation covenants.
How We Can Help?
Drafting an Employment Contract that is fair for both you and your employee demands a deep understanding of the Employment Act and expertise in HR matters. We are affiliated with Kelvin Chia Partnership ('KCP'), a law firm with extensive legal experience. Our team is equipped with an understanding of the legal framework in Singapore and your business needs. Engage us to craft your employment contracts.
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