PAYROLL SERVICES

From 1 April 2016, all employers must issue itemised pay slips to employees covered by the Employment Act.

A contract of service is an agreement between an employer and an employee. A contract of service defines the employer-employee relationship, including the terms and conditions of employment. The contract must include key employment terms and essential clauses, such as hours of work and job scope.

In a contract for service, an independent contractor, such as a self-employed person or vendor, is engaged for a fee to carry out an assignment or project.

This table summarises the main differences between the two:

In accordance to the Employment Act, the employer must pay the employee's salary at least once a month and within 7 days after the end of the salary period. There are exceptions for overtime, resignation without notice and other situations.