The second half of 2024 is shaping up to be a consequential time for employment rules in Singapore. Not only will the Workplace Fairness Legislation (WFL) be introduced in Parliament, but guidelines for the inclusion of restrictive clauses in employment contracts will be released by the tripartite partners (the Ministry of Manpower, National Trades Union Congress and Singapore National Employers Federation). By 1 December 2024, employers will also be required to comply with the Tripartite Guidelines on Flexible Work Arrangement Requests (the Guidelines).
In light of the above, employers with employees in Singapore have much to consider (and potentially implement) in advance of the WFL becoming effective. Below we provide an overview of the upcoming legislation and guidelines and offer steps that employers can take to prepare for the changes.
Workplace Fairness Legislation
A focus of the Singapore government in recent years, the WFL will center on three key areas: prohibition of specific forms of discrimination, requirement of fair considerations in job advertising, and establishment of processes to resolve grievances and disputes.
The WFL will:
There are several steps employers can take now in preparation for these changes.
To comply with the anti-discrimination rules, employers can put in place or review an existing anti-discrimination policy to ensure that it encompasses all the areas covered by the legislation. Employers should also make sure to effectively communicate the policy to employees, invest in relevant training for employees and leadership, and form employee resource groups.
On the recruitment end, the employer should create a formal recruitment policy or review the policy it has in place to ensure compliance with the WFL. Here, training is also important for those employees who are involved in the recruiting process. Employers may also want to consider diverse hiring panels.
Finally, to prepare for updated grievance- and dispute-resolution procedures, employers who do not already have an established process for employees to raise grievances, for conducting investigations, and for responding to affected persons may want to consider putting one in place. The process should be formalised in writing and communicated to employees. Employers should make every effort to maintain the confidentiality of those reporting complaints and to effectively train managers and supervisors.
Non-Compete Clauses
The Ministry of Manpower (MOM), National Trades Union Congress, and Singapore National Employers Federation, which together make up the tripartite partners, are developing guidelines expected for release in the second half of 2024 to shape norms and provide employers with further guidance on the inclusion of restrictive clauses in employment contracts.
The tripartite partners’ position is that “employers should not have restrictive clauses in their employees’ employment contracts unless there is a genuine need for such clauses to protect legitimate business interests.”
These guidelines will not change existing law on non-compete clauses. Employers should ensure that non-compete clauses are proportionate to the role and job scope of the employee whilst bearing in mind the protection of the company’s legitimate proprietary interests.
Flexible Work Arrangement Requests
On 16 April 2024, the MOM announced that it had accepted all 10 recommendations by the Tripartite Workgroup on the Tripartite Guidelines on Flexible Work Arrangement Requests (Guidelines). The mandatory Guidelines come into effect 1 December 2024 and are aimed at making it easier for employees to request a flexible work arrangement (FWA) while acknowledging that employers still have the prerogative to make the final decision regarding FWAs.
The Guidelines contain a set of minimum requirements that all employers must abide by and recommend other best practices for employers to consider in relation to formal FWA requests. They set a baseline standard and employers are not precluded from adopting more progressive practices. In particular, the Guidelines set out how employees should request FWAs and use them and how employers and supervisors should handle FWA requests. The Guidelines determine the process of requesting and considering FWAs, not the outcome of the requests.
Who can make a formal request for an FWA?
Under the Guidelines, any employee who has completed probation can make a formal request for an FWA.
How should a formal FWA request be made?
Existing formal and informal practices should be kept in place if they work well for employees and employers alike. However, should the employer’s existing process for requesting an FWA be nonexistent or lacking, an employee may elect to put in a formal FWA request based on the Guidelines. If the employer has stipulated certain requirements for making a formal FWA request, the employee should follow these requirements by default. If the employer does not have stipulated requirements or a process for an employee to make a formal FWA request, the employee can improvise by making a request in writing that includes the date of request, FWA request for (including its frequency and duration), reason for the request and requested start date and end date. If the employee’s request does not meet the above requirements, it will be deemed invalid.
How should a formal FWA request be evaluated?
Employers should have a process in place to properly evaluate formal FWA requests. First, FWA requests should be discussed in an open and constructive manner. Should there be any disagreement, it is best for employers and employees to address it through the organisation’s internal grievance-handling procedure to the extent possible. Second, FWA requests should be considered carefully. Employers have the prerogative to reject an employee’s FWA request, but this rejection should be based on reasonable business grounds.
How should an employer communicate its decision on a formal FWA request?
Once a decision on a formal FWA request has been made, the employer should communicate it in a timely manner. A written decision should be provided within two months of receiving the request. If the request is denied, employers should include the reason for denial in the written decision. Employers are encouraged to discuss alternatives with the employee in question if denying the FWA request.
To prepare for the Guidelines, employers should consider the following: