Singapore tabled new legislation tackling workplace fairness on 12 November 2024. While the Workplace Fairness Bill is only in its first reading, and is expected to only come into effect in year 2026/2027, the proposed legislation has wide implications on medium and large-sized enterprises. If you are in charge of a business, or are a HR manager, it would be prudent to start proactively review your processes to ensure compliance. Here are my 5 key takeaways from the Workplace Fairness Bill and news article surrounding it (https://www.singaporelawwatch.sg/Headlines/new-workplace-fairness-bill-proposed-to-protect-spore-workers-against-discrimination).
- Businesses that have 25 or more employees are prohibited from making discriminatory employment advertisements, employment decisions, direction, instruction or policy unless it falls within prescribed exceptions.
Under the proposed legislation, businesses face civil penalties for having employment practices in hiring and directing employees and advertising possible employment that discriminates against protected characteristics. Discriminatory employment decisions include hiring (offering and/or any step towards an offer, e.g. inviting for an interview, asking for information), appraisal, promotion/demotion, dismissal/retrenchment/termination of services.
Protected characteristics under the proposed legislation are –
- Age
- Nationality
- Sex
- Marital status
- Pregnancy
- Caregiving responsibilities
- Race
- Religion
- Language ability
- Disability; and
- Mental health condition
2. All businesses who apply for a work pass for foreign manpower belonging to a prescribed category of work passes in contravention of requirements under the tabled legislation commit a civil contravention and may be subject to an administrative penalty.
Under the proposed legislation, all businesses applying for work passes must comply with the fair consideration requirements (i.e. job advertising requirements, and consider in “good faith and in a fair and objective manner” ALL responses to the job advertisement) before making the said work pass application(s).
It would be prudent to keep proper documentation of the review process to refute any allegations that it did not consider all responses in “good faith and in a fair and objective manner” before applying for a work pass.
3. Businesses that have 25 or more employees must develop a grievance-handling process (i.e. a process dealing with allegations/complaints of discrimination or harassment) and inform all employees in writing of its process.
The employer must commit to this grievance-handling process in writing to (among others):
- Inquire into each grievance raised by an employee to the employer
- Review into each said grievance;Informing each employee who has raised a grievance of the outcome of such review;Keeping written records of every inquiry and review; and
- Not disclose to any person, unless reasonably necessary, the identity of the employee who raised the grievance or any information to any inquiry or review.
4. There are civil contraventions, serious civil contraventions, and offences under the proposed legislation.
Civil contraventions that attract liability to pay administrative penalty and/or to follow directions from an authorised officer include, save for certain exceptions:
- Making discriminatory employment decisions,
- Making discriminatory directions, instructions, or policy in writing,
- Publishing an employment advertisement that mentions expressly or by implication a protected characteristic as a condition, advantage or disadvantage or disqualification for employment,
- Applies for a work pass in contravention of fair consideration requirements
- Failure to develop a grievance-handling process in writing,
- Failure to inform all its employees in writing of its grievance-handling process,
- Retaliates against any employee for bringing any proceeding/evidence/allegations/grievance against the employer and the employer knows or suspect that the employee or any other person has done so. These retaliatory acts include deducting any salary, harassing, or subjecting the employee to detriment in relation to his or her employment,
- Contravening any regulations under the proposed legislation,
- Providing inaccurate information or particulars to the commissioner, authorised officer or person inadvertently or without intent to mislead or defraud.
Serious civil contraventions that attract an action in court (think court fees, and significant time and resources in responding to such action) to seek an order for a civil penalty include:
- A second or subsequent civil contravention for making discriminatory employment decisions,
- Making discriminatory employment decisions that is directed, instructed or influenced by a discriminatory direction, instruction, or policy,
- Retaliates against an employee by dismissing the employee or refusing to offer re-employment or employment assistance payment under the Retirement and Re-employment Act 1993,
- Commits a second or subsequent civil contravention in relation to retaliatory acts of deducting any salary, harassing, or subjecting the employee to detriment in relation to his or her employment within one year after any previous civil contravention.
Offences attracting fines and/or jail terms include:
- Failure to comply with a direction of an authorised officer to bring the civil contravention to an end
- Intentionally resists or delays the Commissioner or authorised officer/person in the exercise of any power under the proposed legislation,
- Fails to comply or prevents any person from complying with any requirement of the Commissioner or authorised officer/person under the proposed legislation,
- Intentionally making a false statement to the Commissioner or authorised officer/person either orally or in writing.
5. Businesses cannot, by way of contract of service, exclude or impose any limitation of the proposed legislation, or preclude any person from making or raising of any complaints, allegation, or grievances.
Much like how employers are held accountable under the Workplace Safety and Health Act, employers cannot contract out their legal obligations under the proposed legislation. Under the proposed legislation, any term purporting to exclude or limit the application of this legislation would be void.
BONUS: It is now more important than ever to comply with the due inquiry process when dealing with dismissals for misconduct
Given the significant legal and reputational risks in dismissing an employee under the proposed legislation, it is now more important than ever to seek legal advice have adequate safeguards in observing due process in dismissing an employee for misconduct under the Employment Act.
Employers who do not have an inquiry process for misconduct, grievances, and potential dismissals face potential liability for unfair dismissals and claims for harassment. Employers may also face potential civil penalties imposed by the Commissioner or the court should such dismissals / harassment be found to be retaliatory acts against the employee.
Singapore is making big strides in employment law in 2024. If you wish to have a consult regarding employment law in Singapore, or have questions regarding what was covered here, email me at johnathan.lee@fongllc.com.