Staying Compliant in Singapore: Key Changes for Employers in 2023-24

The Singapore government has recently announced several significant changes that will have a significant impact on employers operating in the country. These changes include new eligibility criteria for employment passes for foreign professionals, proposed workplace discrimination legislation, enhanced guidelines on exercising sensitivity for a harmonious workplace, and increased parental and childcare leave and CPF contribution ceilings.

These changes will have far-reaching implications for employers, particularly in terms of hiring and renewing employment passes for foreign professionals. They may also expose employers to additional civil penalties and claims for compensation and remedial action from employees, while raising employer costs.

In this article, we will discuss these changes in greater detail and provide some guidance to help employers stay compliant with the evolving regulatory landscape.

Employment Pass Eligibility Criteria

Starting September 1, 2023, employment pass ("EP") applications for foreign professionals will follow a new two-stage eligibility framework. The new framework involves an increased qualifying salary dependent on age and industry, followed by a points-based Complementary Assessment Framework (or COMPASS) test that considers salary, qualifications, diversity, and support for local professionals. Bonus points will be awarded for occupations recognized as having skills shortages or that are part of a government strategic priority.

Employers who hire foreign professionals should take note of these changes and review their hiring policies and procedures. They may also need to adjust their budgets to accommodate the increased salaries required under the new framework.

Enhanced Guidelines on Exercising Sensitivity for a Harmonious Workplace

The Tripartite Guidelines on Fair Employment Practices ("Guidelines") issued by the Ministry of Manpower ("MOM") and its tripartite partners set out fair employment practice standards to help prevent discrimination and encourage employers to adopt progressive HR practices.

In February 2023, the Guidelines were expanded to require employers to demonstrate and communicate the importance of an inclusive and harmonious workplace, including assessing employees for performance, promotion, and related areas based only on work-related requirements and not requiring or pressuring employees to participate in non-work-related activities.

These expanded guidelines aim to create a more inclusive and harmonious workplace and help prevent discrimination. Employers should ensure that their HR policies and practices are aligned with the Guidelines to minimize the risk of potential liability.

Proposed Workplace Discrimination Laws

On February 13, 2023, the Tripartite Committee on Workplace Fairness ("TWCF"), which was set up by MOM to review the regulatory framework for workplace fairness in Singapore, proposed new legislation expected in late 2024 prohibiting common forms of workplace discrimination and strengthening protection and redress for victims. The proposed legislation would prohibit discrimination in respect of age, nationality, sex, marital status, pregnancy status, caregiving responsibilities, race, religion, language, disability, and mental health conditions through all stages of employment, from recruitment to termination.

Parties would be encouraged to explore non-monetary remedies during compulsory mediation, such as the reinstatement of an employment offer or an apology letter from the employer. If the claim is escalated to the Employment Claims Tribunal ("ECT"), the ECT would be empowered to order the employer to pay compensation to the victim up to a fixed amount depending on the nature of the claim.

The government may concurrently investigate any suspected breach of workplace fairness legislation and take enforcement action ranging from corrective orders to financial penalties. Under the proposed legislation, enforcement actions may be levied against both the company and the persons responsible for the discriminatory act.

Employers should take note of these proposed changes and begin to prepare for them. They may also want to consider reviewing their HR policies and practices to ensure that they are compliant with the proposed legislation.

Increased Paternity and Infant Care Leave and CPF Contribution Ceiling

On February 14, 2023, the government announced that paternity leave and infant care leave would be increased starting in January 2024.?In addition, the Central Provident Fund monthly salary contribution ceiling will be raised in stages starting on September 1, 2023. These changes will help support working families in Singapore and give them more flexibility to balance their work and family responsibilities.

Employers should take note of these changes and adjust their HR policies and practices accordingly. They may also need to adjust their budgets to accommodate the increased costs associated with the increased leave entitlements and CPF contribution ceilings.

Employers in Singapore should stay up-to-date with the changing regulatory landscape and review their policies and hiring procedures regularly to ensure compliance. Failure to comply with the new regulations and guidelines could result in additional civil penalties and claims for compensation and remedial action from employees, while raising employer costs.

To minimize potential liability risk, employers should ensure that their HR policies and practices are aligned with the Tripartite Guidelines on Fair Employment Practices and consider reviewing and updating them to stay current with the evolving regulatory regime.

Additionally, employers should ensure that staff members involved in hiring, compensation, handling grievances, or other employee-facing processes are trained on fair and lawful employment practices, including conducting non-discriminatory job interviews and using a clearly defined fair recruitment and retention philosophy when evaluating employees.