Singapore proposes law to entrench non-discriminatory workplace norms, introduce penalties
It will also require companies to implement dispute resolution processes
SINGAPORE is introducing legislation to entrench anti-discrimination in the workplace, three years after then-prime minister Lee Hsien Loong announced plans for this in the National Day Rally 2021.
Introduced in Parliament on Tuesday (Nov 12), the Workplace Fairness Bill strengthens protections against discrimination, sets out dispute resolution processes and expands the actions that can be taken against errant employers.
It is the first of two Bills that make up the new Workplace Fairness Legislation (WFL), with both expected to take effect from 2026 or 2027.
The second Bill, to be tabled later, will cover the rights and processes for making private claims related to workplace fairness. The draft law includes expanding the ambit of the existing Employment Claims Tribunal, which hears salary-related and wrongful-dismissal disputes.
Five things to know about the WFL
- Adverse employment decisions based on protected characteristics, such as age, nationality, sex, race, and disability will be illegal, at all stages of employment.
- Exemptions will be made for genuine occupational requirements: reasonable job performance, health and safety, privacy, and legal and regulatory reasons.
- The legislation allows for conditional preferential hiring, such as for locals or seniors. Smaller firms with fewer than 25 employees will be initially exempt from the WFL, with a review to come.
- Employers must implement internal grievance-handling processes for dispute resolution, and employees who make reports will be protected.
- To correct errant practices, the Ministry of Manpower can issue corrective orders to employers, impose administrative fines, or recommend court-imposed fines.
The changes are based on recommendations from a tripartite committee that were released and accepted by the government in August 2023.
The new laws aim to “preserve and entrench” existing workplace-fairness norms, said the Ministry of Manpower (MOM). They build on existing efforts such as the Tripartite Guidelines on Fair Employment Practices and the Fair Consideration Framework.
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Putting in protections
If passed, the law will prohibit adverse employment decisions based on five sets of protected characteristics: age; nationality; sex, marital status, pregnancy status and caregiving responsibilities; race, religion and language; and disability and mental health conditions.
These protections span all employment stages – hiring, the duration of employment and dismissal.
For other forms of discrimination not covered by the new law, employees can continue to rely on tripartite guidelines, which will be retained.
To provide flexibility for business needs, the WFL will also allow employment decisions based on a protected characteristic if it is a genuine occupational requirement.
It sets out four circumstances where this can be done. First, it may be for the reasonable performance of the job, such as language fluency for interpreters.
Second, it may be for health and safety reasons, such as considering an applicant’s mental health for jobs that involve handling weapons.
Third, it may be for privacy reasons, such as gendered hiring at spas. Fourth, it may be for legal and regulatory reasons, such as minimum age limits for bus driver trainees.
If challenged about these decisions, employers will need to explain how the protected characteristic is linked to the job.
Other considerations and objectives have also been taken into account, MOM said.
These include fair access to opportunities for locals. The WFL will legislate existing job advertisement requirements under the Fair Consideration Framework.
Under these, employers applying for Employment Passes or S Passes for foreign hires must first advertise on official jobs portal MyCareersFuture and fairly consider all local candidates.
The WFL will also allow employers to prefer to hire local employees for business and operational considerations, as well as persons with disabilities and seniors. Religious organisations may also make employment decisions based on religion.
For a start, firms with fewer than 25 employees will be exempt from WFL, as they may lack corporate competencies to comply. However, this will be reviewed five years after the legislation takes effect, and such companies must still adhere to tripartite guidelines.
Putting in processes
The WFL also mandates companies to have processes for handling grievances, so disputes can be resolved internally.
MOM said it will not be “too prescriptive” about the format of such processes, as companies have different needs and capabilities.
Taking reference from tripartite standards, the WFL will require employers to inquire into the grievance, review it, and inform the employee of the result, while maintaining the employee’s confidentiality throughout. All employees must be informed of this process.
Employees who step forward to report instances of discriminatory practices will be protected from employers’ retaliation. This means employers are barred from dismissing or seeking damages from them because of the report made.
MOM said that as far as possible, workplace issues should be resolved at the firm level, but employees may approach their unions or the tripartite alliance for more help.
Putting in penalties
MOM said that rather than focusing on punishment, it takes an education-first approach to maintain workplace harmony and change mindsets.
Still, the new legislation sets out penalties for employers who flout the rules, to “strike a balance between education, rehabilitation and effective deterrence”.
Based on the severity of the breach, MOM may issue formal directions to rectify breaches, impose fixed-quantum administrative fines, or recommend higher-quantum fines to be imposed by the courts.
MOM’s tripartite partners, the National Trades Union Congress (NTUC) and the Singapore National Employers Federation (SNEF), expressed their support for the upcoming legislation.
It aligns with NTUC’s advocacy, said its assistant secretary-general Patrick Tay. NTUC also provides union members with guidance, assistance with mediation, and support in pursuing claims, while those in unionised companies can approach MOM for conciliation.
At the Employment Claims Tribunal, union members can file a claim for up to S$30,000, compared with S$20,000 for non-members, he added.
SNEF said the WFL “strikes a crucial balance” between operational flexibility and fair enforcement, adding: “This approach not only provides individuals with the necessary redress, but also fosters a workplace culture that minimises litigation.”
With several years before implementation and the initial exemption for smaller companies, employers have the opportunity to review and strengthen their employment practices, it said.
Employers should view the WFL as “more than just a compliance requirement”, and instead cultivate cohesive and inclusive workplaces as strategic advantages, SNEF added.
Association of Small & Medium Enterprises (ASME) president Ang Yuit said that while small and medium-sized enterprises (SMEs) with fewer than 25 employees will initially be exempt, they should “definitely prepare themselves”.
“SMEs are typically late to prepare for upcoming trends and policies,” he said. “In that respect, ASME will be pushing out a series of initiatives to educate (them).”
One important area of focus for SMEs is how they communicate, as they are “not discerning” in this respect, Ang said, noting that they may not realise that their messaging or conversations are discriminatory, instead believing that they are reflecting genuine operational requirements.
Thus, SME employers must be trained so they understand how conversations around protected characteristics arise – whether during hiring interviews, performance reviews, or exit interviews – and how to navigate such conversations, to “level up”, he said.
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