Events

5. Regulation of outsourcing and contracting

31 Mar 2009

Outsourcing
There are no specific provisions on outsourcing under Singapore legislation.

Contracting
In general, Singapore employment legislation and employment obligations at common law do not apply to true independent contractors (or self-employed persons). Note that tests apply at common law to determine whether or not a person is a contractor or an employee, and the way that the parties characterise the relationship is not determinative.

The Employment Act also contains some rules with reference to contractors, in particular stating that the principal and the contractor and any subcontractor are jointly liable to pay the salary for work supplied in the execution of the contract that is due to ‘workmen’ (ie manual labourers) employed by the contractor or the subcontractor, up to a cap of one month’s salary per workman.


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