It is shaping up to be a busy year on the employment law front in Singapore. We are seeing quite a bit of legislative activity, with several changes coming into effect that will touch on everything from how you recruit to how you manage payroll. Beyond the statutory landscape, there have also been some particularly instructive Court decisions that demonstrate the judiciary’s willingness to protect legitimate employer interests, especially in cases involving misuse of confidential information and enforcement of post-employment restrictions.
Rather than waiting for these changes to catch you off guard, we thought it would be helpful to give you a heads-up on five key developments worth watching
1. Landmark Anti-Discrimination Laws and Changes to the Employment Act on the Horizon
The Workplace Fairness Act – comprising the Workplace Fairness Bill (passed 8 January 2025) and the Workplace Fairness (Dispute Resolution) Bill (passed 4 November 2025)—is expected to take effect by the end of 2027. Although the commencement date is some time off, many companies operating in Singapore have already started conducting gap analyses and reviewing two critical areas of their HR infrastructure: internal grievance handling and investigation policies, and performance management systems. Both will require careful calibration under the new statutory framework.
The last time the Employment Act underwent major revision was in [2019] – whilst the precise details of the upcoming changes remain to be announced, early indications suggest that the reforms will likely introduce enhanced protections for specific employee groups whilst simultaneously streamlining existing compliance processes for employers. Following stakeholder consultations throughout the year, recommendations will be submitted to the Government in the second half of 2026. We are monitoring these developments closely and will provide updates as the review progresses.
2. Working Longer: Retirement Ages Rise Again
From 1 July 2026, under the Retirement and Re-employment Act 1993, the statutory retirement age will increase from 63 to 64, and the statutory maximum re-employment age will rise from 68 to 69.
3. Higher CPF Costs
Effective 1 January 2026, the ordinary wage ceiling for Central Provident Fund contributions has increased from SGD 7,400 to SGD 8,000, accompanied by a 1.5% rise in contribution rates. For employers with significant headcount in higher salary bands, this translates to material increases in employment costs that should be factored into 2026 budgets.
4. Enhanced Parental Leave: Supporting Working Families
Starting 1 April 2026, shared parental leave will expand significantly from 6 weeks to 10 weeks, giving families more flexibility in managing childcare responsibilities.
5. Singapore Courts Take Robust Approach to Protecting Employer Interests Against Employee Disloyalty
The recent High Court decisions in Guy Carpenter & Co Pte Ltd v Choi Okmi [2025] SGHC 241 and Hayate Partners Pte Ltd v Rajan Sunil Kumar [2025] SGHC 41 are stark reminders that loyalty, integrity and fair dealing remain at the core of employment relationships, particularly in competitive industries where client relationships and confidential information are valuable assets. The employers succeeded against the ex-employee in both cases.
Whilst clients have the right to choose their service providers freely, employees remain duty-bound to act in good faith to advance their current employer’s interests rather than quietly facilitating client migration in anticipation of future roles elsewhere. Breaches of duties of good faith include assisting in setting up competing businesses whilst employed, inducing colleagues to leave, working for competitors during employment, failing to inform employers of business diversion, and diverting business to competitors. Forwarding confidential information to personal email accounts, even if ostensibly for work purposes, may constitute breach of confidence where the true purpose is to retain access to sensitive information for use at a subsequent employer.
Another key takeaway is the importance of clear employee exit procedure protocol and IT security policies regarding the handling of confidential information on employees’ personal devices, which can prove essential in securing digital evidence during an employee’s departure.
For further information, please contact:
Seow Hui Goh, Partner, Bird & Bird
seowhui.goh@twobirds.com
