March 5, 2026
THIMPHU – The Gelephu Mindfulness City Authority has unveiled a comprehensive employment framework to maintain high employment standards, promote a business-friendly labour environment, and safeguard working conditions in the Special Administrative Region.
The GMC Employment Act 2025, which came into force on December 26, 2024, is modeled on the Singapore Employment Act 1968, with amendments made under the Application of Laws Act 2024 to attract foreign investment and support economic growth.
The Singapore Employment Act is a well-established labour law framework widely regarded for its business-friendly approach and balanced labour protection, which has helped the country achieve a leading global ranking in labour–employer relations.
The Act sets out mandatory protections that override any less favourable terms in an employment contract. It covers all salaried workers, including part-time and contract employees, with clear legal avenues for grievances.
Under the Act, a clearly defined penalty structure applies to employment violations, designed to deter serious offences and ensure cooperation with regulatory inspections.
Penalties for salary-related offences range from USD 3,000 to USD 15,000 and imprisonment of up to six months, with higher sanctions of USD 6,000 to USD 30,000, or imprisonment of up to one year for repeat offences.
Employers failing to provide statutory maternity or paternity leave, make required payments, or unlawfully dismiss employees are punishable by fines of up to USD 5,000, or imprisonment for up to six months, with repeat offences facing higher penalties of up to USD 10,000, or imprisonment for up to one year.
Fraudulently inducing an employee to emigrate is punishable by a fine of up to USD 5,000 or imprisonment for up to two years, while obstructing authorised officers or failing to comply with inspection requirements is punishable by a fine of up to USD 5,000 or imprisonment for up to six months.
Employees cannot be required to work more than six consecutive hours without a break, more than eight hours a day, or more than 44 hours a week, with some exceptions for continuous operations, emergencies, or essential services.
Overtime is limited to 72 hours per month, and employees must be paid at least 1.5 times their hourly basic rate for work beyond the standard eight hours, up to the 12-hour limit, except in urgent circumstances.
In some arrangements, flexible work, shift schedules, and task-based payment systems are permitted if agreed in the employment contract and within statutory limits, but the law still limits work to a maximum of 48 hours per week or 88 hours over two consecutive weeks.
Employers who violate working hour, wage, or payment requirements are punishable by a fine of up to USD 5,000 for a first offence, or up to USD 10,000, imprisonment for up to one year, or both for repeat offences.
Employees are also entitled to rest days and may be exempted from certain requirements by authorised officers based on operational needs and worker safety.
Employees are entitled to paid annual and sick leave with medical certification, as well as paid public holidays or an extra day’s basic salary if required to work on a public holiday. Eligible working mothers can claim paid maternity leave, and parents are entitled to paid childcare leave.
Children under 15 may only work in family-run or light work, while those aged 15–16 are subject to restrictions on industrial work. Apprenticeships and vocational training programmes are exempt, and violations may result in fines or imprisonment.
The Act allows employers to dismiss an employee without notice for misconduct such as theft, fraud, dishonesty, insubordination, disorderly conduct, or negligence that causes major loss to the employer, which is a valid ground for termination.
The Act defines workmen to include cleaners, construction workers, drivers, inspectors, and piece-rate employees. It sets claim fees at USD 3 for employees and USD 20 for employers and provides rules for calculating wages for piece-rate and monthly-paid workers.
The Act outlines guidelines for dismissal, termination notice, and misconduct inquiries to prevent wrongful dismissal. At the same time, less serious civil breaches related to administrative record-keeping are generally handled through financial penalties rather than criminal prosecution.