Compliance Guide for Singapore's Workplace Fairness Act

While the Singapore Workplace Fairness Act (WFA) is slated to gain effect in due course, this is not the first time Singapore is focusing on aspects relating to workplace discrimination. Presently, Singapore manages workplace discrimination through a combination of regulations and government initiatives. The key legislation addressing workplace discrimination is the Employment Act, 1968 which prohibits employers from dismissing a female employee during the maternity benefit period and also from dismissing employee/s on the ground of age. The Protection from Harassment Act 2014 prohibits entities from causing harassment, alarm, or distress, causing fear, provocation, or facilitation of violence, as well as prohibiting unlawful stalking. Further, the Workplace Safety and Health Act 2006, mandates Employers of workplaces to take measures to ensure safety and health of employees at work and prohibits dismissing or threatening to dismiss an employee, etc.

The WFA is an addition to the existing legislations and an evolution of the Tripartite Guidelines on Fair Employment Practices (TGFEP) framework, making workplace fairness legally enforceable. In other words, unlike before, businesses that violate the WFA will, going forward, face?legal consequences, including?Ministry of Manpower (MOM) intervention, monetary penalties, and reputational risks.?

The WFA seeks to protect job seekers and employees from the most common forms of workplace discrimination. Workplace discrimination is an adverse employment decision in aspects relating to hiring, appraisals, training, promotions, and dismissal decisions.?The WFA emphasizes that employers cannot discriminate based on protected characteristics of an individual, such as age, nationality, sex, marital status, pregnancy, caregiving responsibilities, race, religion, language ability, disability, and mental health conditions, while making employment decisions.

The Workplace Fairness Bill was first read on 12th November 2024, passed by Parliament of Singapore on 8th January 2025 and assented to by the President on 3rd February 2025 and currently awaits the date of gaining effect. Except for the provision on fair consideration, WFA applies to employers employing more than 25 employees.

Statutory obligations on the part of Employers under the WFA

Prohibition of Discrimination

The WFA prohibits workplace discrimination based on eleven “protected characteristics,” which are mentioned under Section 8 of the WFA. These include age, sex, race, religion, marital status, pregnancy, caregiving responsibilities, and disability. Sections 9 to 16 go on to provide the meaning of these protected characteristics. The Act also provides for exceptions to discrimination under Sections 17 to 19 and provides “fair consideration” under Section 26 regarding employment of foreigners. There is also a consequential amendment to the Foreign Manpower Act, 1990.

Grievance Handling Mechanism

Employees will have access to formal channels to report and resolve instances of discrimination, as employers must develop a process in writing and provide the employees with the inquiry and review findings. The WFA also provides for no retaliation provision against employees.

Obligation to Maintain Records

The WFA mandates employers to maintain records related to inquiries and reviews of grievances.

Strengthened Enforcement

The WFA introduces penalties for non-compliance, distinguishing between civil contraventions and serious civil contraventions. Employers failing to comply with legal directives may face penalties, including fines and imprisonment. Additionally, non-compliance may result in the suspension of work pass privileges for foreign employees.

What Steps can businesses take to ensure compliance?

While regulations are awaited to provide details in terms of the stated period for which records must be maintained, the appeal process for employers, etc., businesses can adopt a structured approach that involves reviewing policies, training personnel, and implementing effective monitoring systems. Below are the key steps:

Review and Revise Employment Policies

Employers should begin by conducting a thorough review of their existing employment policies to ensure they align with the WFA.

Update Anti-Discrimination Policies

This should include provisions addressing recruitment, promotion, training, and termination.

• Job advertisements and recruitment criteria must be free from discriminatory language. Selection should focus on merit, such as skills, experience, and qualifications. Companies can bear in mind the exceptions provided under the WFA when developing this policy.
• Establish fair and transparent criteria for appraisals and promotions to avoid potential bias.

Training and Awareness

• Conduct regular workshops to educate staff about the Act, its requirements, and the importance of diversity.
• Train managers to recognize unconscious bias and handle grievances effectively. Emphasize their role in upholding fair practices.
• Inform employees about their rights under the WFA and how they can report unfair treatment.

Implement Robust Grievance Reporting Mechanisms

• Create accessible and confidential channels for reporting discrimination.
• Develop clear protocols for investigating complaints. Ensure impartiality and timely resolution.
• Implement safeguards to protect employees who report discrimination from retaliatory actions.

Maintain Comprehensive Documentation

• Keep records of recruitment, promotions, appraisals, and terminations to show that decisions are based on objective criteria.
• Document all training sessions conducted on workplace fairness.
• Maintain records of grievances, investigations, and outcomes to provide transparency and accountability.

Conduct Regular Audits

• Evaluate whether current policies effectively prevent discrimination and align with the WFA.
• Conduct periodic surveys to gauge employees’ perceptions of workplace fairness.
• If required engage external consultants to audit employment practices and provide recommendations for improvement.

To ensure that this can be done it is important to ensure that the tone is set from the top to convey the organization’s commitment to workplace fairness and inclusivity.

Penalties for Non-Compliance

Non-compliance with the WFA can have serious repercussions for companies, including:

1. Monetary penalties for violations. The Act provides for civil contraventions and serious civil contraventions with the Act providing for regulations that can prescribe as penalties “an amount not exceeding $5,000 for each occasion of a civil contravention, and $10,000 in the case of a second or subsequent occasion of the civil contravention”.
2. Rejection or revocation of work pass privileges for foreign employees if employment was not in accordance with the WFA.
3. Public perception of the company may be negatively impacted, affecting talent acquisition and customer trust.

While businesses gear up to align with the WFA, as a first step, they will need to prepare for the implementation of the WFA by reviewing their existing policies and practices to ensure they align with both the existing Tripartite Guidelines on Fair Employment Practices and the WFA. To make this journey of adaptation seamless, Tripartite Alliance for Fair and Progressive Employment Practices (TAFED) has hosted on its portal a Guide to Workplace Fairness (For Employers) which Employers and HR can use to review and make necessary improvements to their organization’s employment practices in preparation for the Workplace Fairness Legislation (WFA) and the Tripartite Guidelines on Fair Employment Practices (TGFEP). This involves ensuring, at any stage of the employment process (e.g., recruitment, promotion or even termination), that individuals are assessed on a fair, merit-based approach rather than their personal characteristics, especially the specified protected characteristics. Existing grievance- and dispute-handling processes should also be reviewed to ensure that clear guidelines are in place. This portal also has A Guide to Job Interviews: Assessing Candidates Fairly and also guides on how to write a fair job advertisement. It also has guidelines for handling complaints and several other aspects. Companies that proactively embrace the principles of the WFA will not only meet regulatory requirements but also position themselves as leaders in workplace fairness, contributing to Singapore’s vision of a harmonious and progressive society. While the Regulations in respect of the WFA are yet to be out, we at Lexplosion believe it is opportune time for businesses in Singapore to start aligning their HR practices, processes and compliance towards adapting to the WFA.

Written by Antara Dasgupta and Swapna Umakanth

Research by AYUSHI KARMAKAR

Disclaimer

The information provided on this blog is for general informational purposes only and is not a substitute for professional legal advice. We are not a law firm and are not authorized to practice law in your jurisdiction. Laws and regulations are complex and constantly changing, and information that may be true in one jurisdiction may not apply in another. Before acting on any information you read here, you should consult with a qualified lawyer practicing in the relevant jurisdiction for your specific legal issues or concerns. While we strive to provide accurate and up-to-date information, we make no guarantees that the information on this blog is completely current or error-free. We disclaim any liability for any actions taken or not taken based on the information on this blog.