Singapore Update: Employment Issues Tied to Other Areas of The Law – January 2024

Below is an update on Singapore’s evolving employment law landscape. We also shed light on some employment issues which frequently come up in our client work, along with some recommendations for you to start the year strong.

Greater protection against discrimination under Workplace Fairness Legislation in 2024

Singapore’s first Workplace Fairness Legislation (“WFL”) which is slated to be passed in the second half of 2024 seeks to enhance protection against discrimination and provide assurance that workers can report grievances without fear of retaliation.

When enacted, the WFL will complement, not replace, the existing Tripartite Guidelines on Fair Employment Practices. This will clearly give employees more bite as they allege discrimination or other unfair practices. Hence, it is critical that employers review its processes for alignment with the existing Tripartite Guidelines and the forthcoming changes.

Increased concerns about Workplace Harassment in Singapore

Reports from the Association of Women for Action and Research (“AWARE”) reveal that workplace harassment is becoming increasingly problematic and prevalent in Singapore. This is also reflected in the work we handle which has resulted in terminations for harassment concerns. If you recall, we hosted an event in mid-2023 addressing many of these issues. There appears to be no let-up.

As a visible development of on the fact there is particular focus on harassment concerns, the latest salvoes is the launch of the Tripartite Framework for the Prevention of Abuse and Harassment in Healthcare on 13 December 2023 to enhance protection for healthcare workers.

As we start 2024, are your policies on the boundaries of when a matter is harassment, how to deal with such issues and awareness amongst employees been updated and are actively enforced. The organisation needs to be clear on the stance it takes against harassment, i.e. whether it adopts a zero tolerance policy or whether it is willing to exercise some degree of compassion and remedial guidance in certain scenarios. Employees should be made aware of the organisation’s procedures and stance against harassment.

The upcoming WFL will require employers to implement a proper grievance handling process at the workplace, thereby providing workers with stronger protection against harassment. There will be further obligations on employers to tackle workplace harassment will be imposed.

Handling employment termination and minimising complications

The termination of employees is an inherent aspect of an organisation’s operations which often comes with complications. Termination can occur for various reasons, including, simply termination by notice, or more likely termination for cause.

As termination occurs, so too challenges by employees that the termination is wrongful. Employees challenge as they are more vocal now, but importantly are aware of their rights. To avoid or minimise such challenges, adherence to proper termination processes is crucial. While there is no requirement to enter into termination agreements with soon-to-be terminated employees, doing so is highly recommended as it allows organisations to further safeguard its interests.

When terminating employees for reasons such as poor performance or misconduct, it is imperative that the organisation maintains well-documented evidence supporting the decision to terminate as it can serve as essential evidence in the event the termination is challenged. This can only be done if proper due inquiry has been undertaken, which in itself is a challenging process and must not be taken lightly. There are tremendous benefits to having third parties conduct appropriate reviews and investigations as part of the evidence gathering and the due enquiry process. Note too that employees must be given an opportunity to respond.

The importance of maintaining paper trails and documentation

In recent times, we have seen investigations being carried out by the authorities against organisations for different issues ranging from harassment, to discriminatory hiring and unfair dismissal. In this regard, we emphasise the importance of maintaining proper paper trails and documentation which can serve as crucial evidence to justify an organisation’s actions or decision if challenged.

Taking the hiring of foreigners for example, it is important to retain documented evidence of compliance with the Fair Consideration Framework (i.e. proof that the foreign employee was not pre-selected). This would include evidence of compliance with the job advertising requirement and evidence that the local applicants (if any) did not meet the job requirements.

When conducting meetings, especially with problematic employees, it is recommended to ensure that detailed notes are taken down and kept as such notes may be useful as contemporaneous evidence as to what was said during the meeting, if challenged in court or raised in an investigation by the authorities.

Other Administrative But Important Changes

Application of the COMPASS Framework to Employment Pass renewal applications in 2024

The Complementary Assessment (“COMPASS”) Framework, a new points system for Employment Pass (“EP”) applications took effect on 1 September 2023 for new applications and takes effect on 1 September 2024 for expiring EPs which require renewal.

When applying for EPs, ensure that your organisation’s Singapore Standard Industrial Classification (SSIC) is updated and accurate as the COMPASS Framework accounts for sectoral differences in salary norms. Time should also be factored in to conduct the required background checks on the educational qualifications of EP applicants. To ensure that EP applicants attain sufficient points to satisfy the COMPASS Framework, organisations may also wish to consider hiring foreigners for jobs that are on the Shortage Occupation List (“SOL”) or participation in the Strategic Economic Priorities Programmes for bonus points.

Updates to the SOL (which will take effect from September 2024) will be released in March 2024.

Guidelines on Flexible Work Arrangements to be published in 2024

The Tripartite Guidelines on Flexible Work Arrangements (“FWAs”) which seeks to ensure fair and practical consideration of FWA requests, are expected to be published in 2024.

These guidelines will build upon the Tripartite Standard on FWAs, which delineates best practices for offering flexi-work and managing FWA requests. Adopting the current Tripartite Standard on FWAs at this juncture would be advantageous in facilitating a smoother transition and compliance with the forthcoming Tripartite Guidelines on FWAs.

Increased paternity leave and unpaid infant care leave in 2024

From 1 January 2024, government-paid paternity leave for eligible fathers will be doubled from 2 to 4 weeks. Unpaid infant care leave (for children aged below 2) will also be doubled from 6 to 12 days per year.

In view of these changes, do ensure that your organisation’s internal HR policies are updated accordingly. 

Policy changes in the construction and process sectors

To incentivise firms in the construction and process sectors to hire higher-skilled foreign workers, do note that the following changes have been implemented with effect from 1 January 2024:

Reduced the Dependency Ratio Ceiling from ratio of 1 local employee to 7 Work Permit Holders (WPHs) or S Pass holders, to 1 local employee to 5 WPHs or S holders;

Phased out the Man-Year Entitlement (MYE) framework; and

Revised the levy structure and rates for WPHs.

By Kala Anandarajah, RAJAH & TANN LLP, Singapore, a Transatlantic Law International Affiliated Firm. 

For further information or for any assistance please contact singapore@transatlanticlaw.com

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