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Singapore Update: Passing of Bill to Enhance Parental Leave Schemes, Institute Leave Protections

03/12/2024

Introduction

In his maiden National Day Rally 2024 speech, Prime Minister Mr Lawrence Wong announced that the Government would introduce a new shared parental leave (“SPL“) scheme for parents of children born (or due) on or after 1 April 2025, as well as making mandatory an additional two weeks of paternity leave.

On 13 November 2024, the Child Development Co-Savings (Amendment) Bill (“Bill“) was passed in Parliament to amend the Child Development Co‑Savings Act 2001 (“Act“). Once in force, it will:

  • provide for new and enhanced parental leave schemes, namely the new SPL scheme and the enhanced Government-Paid Paternity Leave (“paternity leave“);
  • clarify reimbursement where employees are concurrently employed by two or more employers, or are both an employee and a self‑employed person;
  • implement a new minimum notice requirement across all parental leave schemes; and
  • introduce protection against a notice of dismissal during any absence from work on paternity leave or paid adoption leave.

We review the upcoming changes and the details of implementation below.

Parental Leave Schemes

The new SPL scheme

Key features of the SPL scheme are as follows:

Implementation: The SPL scheme will be implemented in two stages to allow employers more time to adjust to the new scheme. The stages are determined by the child’s birth date or estimated due date (whichever is later), or eligibility date for an adoption application (collectively, “Relevant Date“).

    • Where the Relevant Date is on or after 1 April 2025: six weeks of SPL.
    • Where the Relevant Date is on or after 1 April 2026: ten weeks of SPL.

Eligibility: Working parents who are eligible for the existing government-paid maternity leave (“maternity leave“), paternity leave and adoption leave under the Act will likewise be eligible for the SPL. For details on eligibility requirements such as citizenship, marriage, and employment, please see the Ministry for Social and Family Development’s (“MSF“) website here.

    • Where an employer voluntarily grants paid leave to an employee who does not satisfy the employment criterion, the Government may reimburse the employer at its discretion under the new Section 12DB of the Act. This is subject to whether certain other requirements have been met.
    • If a child passes away, the parents’ eligibility for SPL will cease on the date after the child’s death.

Leave consumption

    • The SPL must be consumed within 12 months of the Relevant Date.
    • By default, the SPL will be shared equally between the parents of the child. However, the parents may change the sharing arrangement within the first four weeks of the Relevant Date. Thereafter, their employers’ agreement will be needed.
    • The SPL is to be taken in one continuous block, unless the employer and employee have come to a mutual agreement on an alternative leave arrangement.

Funding and reimbursement: All 10 weeks of the SPL scheme will be funded by the Government, with a reimbursement cap of S$2,500 per week.

Penalties for non-compliance: Under the new Section 12DA of the Act, where an employer fails to pay a parent in accordance with the new provisions, or fails to grant the SPL “without reasonable cause”, such employer shall be liable for a maximum imprisonment term of six months and/or a fine not exceeding S$5,000. The maximum penalties are doubled for repeat offenders.

Once in effect, the new SPL will replace the earlier shared parental leave scheme, under which a mother could share up to four weeks of her maternity leave with the child’s father.

Enhanced paternity leave

As of 1 January 2024, paternity leave had been extended from two weeks to four weeks on a voluntary basis, such that employers could voluntarily extend the additional two weeks to their employees and be reimbursed by the Government.

Under the Bill, employers must extend a total of four weeks’ paternity leave to fathers where their child’s Relevant Date is on or after 1 April 2025. Employers will continue to be reimbursed by the Government for all four weeks of paternity leave.

Reimbursement for Concurrent Employers and/or Self-Employed

For employees who are concurrently employed with multiple employers at any time during their entitlement period for maternity leave, paternity leave, SPL and adoption leave (collectively “Parental Leave“), the new Section 12MA of the Act clarifies that reimbursement will apply on a “per-parent” basis. As such, the total reimbursement claimable by all employers of an employee will be capped at S$2,500 per week.

Where the claim amount exceeds the cap, the reimbursement will be apportioned between employers. For employees who are concurrently self-employed, the Government will first reimburse the employer(s) before considering claims by the employee as a self-employed person.

New Notice Requirements for Continuous Parental Leave

Under clauses 3, 4, 6 and 9 of the Bill, employees must provide at least four weeks’ notice to their employers before consuming leave under the Parental Leave Schemes in a continuous block. If this notice period is not met, employers are not obligated to agree to the leave arrangement.

However, employers and employees may mutually agree to a shorter notice period.

Employment Protections

At present, it is unlawful for employers to dismiss or give a notice of dismissal to a female employee on maternity leave. Clauses 4 and 9 of the Bill will grant the same protection to fathers and adoptive parents on paternity and adoption leave, respectively, beginning from 1 April 2025.

This protection will not apply to the SPL scheme. However, employees who consider themselves wrongfully dismissed may seek recourse under the Employment Act 1968. The upcoming workplace fairness legislation will also strengthen protections against workplace discrimination.

Concluding Remarks

The past year has seen some significant changes to Singapore’s employment laws, ranging from the tabling of the Workplace Fairness Bill , to the passing of the Platform Workers Act, as well as the issuance of the Tripartite Guidelines on Flexible Work Arrangement Requests.

Should you have any queries on the Bill or other recent developments in Singapore’s employment landscape, please contact our Employment team below.

For more information, click the following links (available at the MSF website at https://www.msf.gov.sg/):

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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