Companies with sick leave component in attendance bonuses could have work pass privileges suspended: MOM

FIRMS which continue to have attendance-related incentive schemes that consider sick leave utilisation could lose their work pass privileges, Senior Minister of State for Manpower Koh Poh Koon said in Parliament on Monday (Feb 28).

Replying to Member of Parliament Louis Ng Kok Kwang, who asked if the government would consider banning such an attendance bonus in proposed legislation on workplace discrimination, Dr Koh said that the Tripartite Guidelines on Fair Employment Practices (TGFEP) already require employers to appraise and remunerate employees in a fair and objective manner, taking into consideration the employees' performance and contributions.

"Attendance-related incentive schemes that consider sick leave utilisation are contrary to this principle," said Dr Koh, reiterating a point that Manpower Minister Tan See Leng had made in another parliamentary reply earlier in February.

In 2023, the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) will engage and advise employers who still continue with such schemes to stop, said Dr Koh.

"If they continue with the practice, TAFEP will recommend to the Ministry of Manpower to take enforcement action, which could include the suspension of work pass privileges," he added.

He also urged companies to review their workplace policies and make adjustments where necessary.

"The Tripartite Committee on Workplace Fairness is deliberating on the scope and design of legislation to enshrine the TGFEP in law," said Dr Koh. "The key objective of this new legislation is to provide a strong statement against workplace discrimination and broaden the range of actions that can be taken when workplace discrimination on the basis of characteristics such as age, nationality or race occurs."

But he added that the MOM and tripartite partners take a range of approaches, including guidelines and education, and it is not necessary to implement legislation as a solution to every workplace issue.