Singapore Employment Legislation Changes 2024
Businesses in Singapore will need to be ready to implement these new regulations for their employees in 2024
In this article, we will delve into the Singapore Employment Legislation Changes 2024. Let’s understand the key updates and amendments in employment legislation that are expected to impact employers across various sectors.
In 2024, Singapore introduced several significant amendments to its labor laws, affecting various aspects of employment, including recruitment procedures, fair work practices, industrial relations, and parental leaves. These changes are crucial for employers to understand and implement to ensure compliance with Singapore’s labor regulations.
Increase in CPF Salary Ceiling
The Central Provident Fund (CPF) has revised the monthly salary ceiling, which is set to increase incrementally over the coming years. The CPF monthly salary ceiling is the maximum portion of an employee’s monthly wage that is eligible for CPF contributions. Effective from January 1, 2024, the ceiling has risen to SGD 6,800. This will be followed by further increases:
- January 1, 2025: Ceiling will rise to SGD 7,400
- January 1, 2026: Ceiling will reach SGD 8,000
These changes are part of the government’s broader initiative to ensure adequate retirement savings for employees. While these increased ceilings may reduce the employee’s monthly take-home pay, their overall total monthly earnings will get a boost considering the employer’s share to the CPF.
Expanded Paternity Leave
From January 1, 2024, working fathers of Singaporean children born on or after this date will be entitled to four weeks of government-paid paternity leave, up from the previous two weeks.
The additional two weeks are initially voluntary, with employers who opt in being reimbursed by the government. This move aims to promote greater involvement of fathers in childcare.
Unpaid Infant Care Leave Increase
Starting January 1, 2024, unpaid infant care leave has been extended from six to twelve days per year for each parent.
To qualify, employees must have completed three continuous months of service with their employer. Additionally, this leave is available to parents of Singaporean children under the age.
Updates to the Renewal Employment Pass (EP) Applications under the COMPASS Scoring System
On 1 September 2023, Singapore’s Ministry of Manpower (MOM) introduced COMPASS, a points-based framework designed to assess Employment Pass (EP) applications. This system will be applicable for EP renewals from 1 September 2024.
The framework is intended to assist employers in selecting highly qualified foreign professionals while promoting workforce diversity and enhancing the local talent pool.
To qualify under COMPASS, EP applicants must achieve at least 40 points. The evaluation is based on four core criteria:
- Salary
- Qualifications
- Workforce Diversity
- Contribution to Local Employment
Additionally, there are two bonus criteria:
- Skills Bonus (for roles on the Shortage Occupation List)
- Strategic Economic Priorities Bonus
Key aspects of the COMPASS framework include:
- Raising the qualifying salary for EP renewals.
- Points-based evaluation based on various criteria, including skills, salary, and the candidate’s nationality in relation to the firm’s Professional, Managerial, Executive, and Technical (PMET) workforce.
- Default scoring for small firms with fewer than 25 PMET employees.
Updates to Retirement and Re-employment Legislation
Employers are prohibited from dismissing employees below the age of 63 based on age, in line with the Retirement and Re-employment Act (RRA). Additionally, the minimum retirement age remains at 63, with the re-employment age set at 68. However, the retirement age is expected to be 65 and the re-employment age is expected to be 70 by 2030.
Workplace Fairness Legislation
The proposed Workplace Fairness Legislation (WFL) aims to strengthen protections against workplace discrimination and provide a secure channel for employees to voice their concerns without fear of retaliation.
This new legislation, expected to come into effect before the end of the year, is intended to complement, rather than replace, the existing Tripartite Guidelines on Fair Employment Practices.
These guidelines are designed to promote best practices in preventing discrimination and ensuring fairness throughout all stages of employment, from hiring to termination.
The WFL will apply specifically to current and prospective employees, though small businesses with fewer than twenty-five employees will be exempt from these requirements. This exemption will be reviewed in five years to assess its continued relevance.
Here’s what the Workplace Fairness Legislation entails:
a. Including the Tripartite Guidelines on Fair Employment Practices into Law
One of the most significant developments in 2024 is the decision to add the Tripartite Guidelines on Fair Employment Practices (TGFEP) into law. This move is expected to take place before the end of the year, marking a pivotal shift from advisory guidelines to legally enforceable standards.
The TGFEP aims to ensure fair recruitment and employment practices by prohibiting discrimination based on age, race, gender, religion, marital status, family responsibilities, and disability. This legislative change will enhance protections for employees and is part of the broader effort to strengthen workplace fairness in Singapore.
b. Protections Against Wrongful Dismissals
Under the WFL, employees who face dismissal due to discriminatory reasons now have clearer legal recourse, further reinforcing Singapore’s commitment to fair employment practices.
c. Advisory on Accommodating Persons with Disabilities
In alignment with the proposed Workplace Fairness Legislation, the Ministry of Manpower (MOM) is set to release a Tripartite Advisory on reasonable accommodations for persons with disabilities in 2024. This advisory will offer guidance to employers and employees on implementing effective accommodations, complementing the new legislation which prohibits workplace discrimination based on disability.
The effectiveness of these accommodations will be measured by employment outcomes.
Following the release of these new guidelines, MOM will seek feedback from employers and employees to enhance the advisory.
d. Grievance Resolution Procedures
Under the Workplace Fairness Legislation (WFL), employers will be mandated to establish processes for resolving grievances internally before any external escalation. These processes must include several key components:
- Employee Awareness: Employers are required to inform all employees about the grievance handling procedures in place.
- Inquiry and Documentation: Employers must conduct necessary inquiries into the grievances and document the entire process to ensure transparency.
- Communication: The outcome of the grievance must be communicated to the employee who raised the issue.
- Confidentiality: Employers must safeguard the confidentiality of individuals who report cases of workplace discrimination or harassment.
- Protection Against Retaliation: Retaliation against those who report such cases is strictly prohibited.
Employee Obligations under the WFL
Employees who wish to file a complaint must provide initial evidence suggesting that discrimination has indeed occurred. They need to clearly outline the incidents that led them to believe they experienced negative employment outcomes due to a protected characteristic. This requirement aims to prevent baseless claims.
Mandatory Mediation for Dispute Management
If a dispute cannot be settled within the company, employees have alternative avenues. The new legislation stipulates that claims of workplace discrimination must first go through mandatory mediation at the Tripartite Alliance for Dispute Management. If unresolved, the matter may then be taken to the Employment Claims Tribunal for final adjudication.
Flexible Work Arrangement Requests
The Tripartite Guidelines on Flexible Work Arrangement Request (the “Guidelines”) will come into effect on 1 December 2024. This will replace the existing Tripartite Advisory on Flexible Work Arrangements issued in 2014 as well as the Tripartite Standard on Flexible Work Arrangements introduced in 2017.
Types of Flexible Work Arrangements (FWA)
The guidelines categorize flexible work arrangements into three main types:
- Flexi-Time: where employees work flexibly from different locations aside from their usual office location (e.g. telecommuting, work-from-home)
- Flexi-Place: where employees work flexibly at different timings with no changes to total work hours and workload (e.g. flexi-hours, staggered hours, flexi-shift, compressed work schedule)
- Flexi-Load: where employees work flexibly with different workloads and with commensurate remuneration (e.g. job sharing, part-time work)
Requirement for Formal FWA Requests
The guidelines emphasize the importance of formalizing the FWA request process. Employees interested in FWAs must submit a formal request, which should include:
- Detailed Information: A clear outline of the specific type of FWA being requested, the duration of the arrangement, and a plan for managing job responsibilities during the FWA period.
- Rationale for the Request: A detailed explanation of why the FWA is necessary, whether due to personal responsibilities, health reasons, or the desire for better work-life balance.
- Impact Assessment: An assessment of how the FWA might impact work performance, team dynamics, and business operations, along with suggestions for mitigating any potential challenges.
Formalizing this process ensures that requests are evaluated systematically and fairly, allowing employers to make informed decisions.
Principles for Proper Consideration of FWA Requests
The guidelines set forth several key principles that employers should follow when considering FWA requests:
- Business Needs Assessment: Employers must evaluate how the requested FWA will impact business operations, including productivity, team collaboration, and service delivery. Certain roles may be less suitable for specific types of FWAs, such as positions that require physical presence or direct customer interaction.
- Job Suitability: Employers should consider whether the nature of the employee’s job allows for effective performance under the requested FWA. For instance, while a Flexi-Place arrangement might be ideal for a software developer, it may not be feasible for a retail associate.
- Employee Circumstances: Employers are encouraged to consider the personal circumstances of the employee, such as caregiving responsibilities, health issues, or commuting challenges. Showing empathy in these situations is crucial for fostering a supportive and inclusive workplace.
- Exploring Alternatives: If the specific FWA request cannot be accommodated, employers should work with the employee to explore alternative arrangements that could meet both the employee’s needs and the organization’s operational requirements.
Employer Responsibilities
Employers have a critical role in implementing the guidelines effectively. Key responsibilities include:
- Establishing Clear Policies: Employers should create and communicate clear FWA policies that outline the process for submitting and evaluating requests, as well as the criteria for decision-making.
- Documenting Requests and Decisions: Keeping a record of all FWA requests and the outcomes ensures transparency and consistency, helping to build trust between employees and management.
- Providing Justified Responses: If an FWA request is denied, employers must offer a clear and reasoned explanation, potentially suggesting alternative arrangements that could work for both parties.
Employee Responsibilities
Employees are expected to approach FWA requests with responsibility and foresight. This involves:
- Making Informed Requests: Employees should provide detailed and thoughtful requests, explaining their needs and how they plan to manage their responsibilities under the proposed FWA.
- Engaging in Open Communication: Constructive dialogue between employees and employers is essential for finding solutions that balance personal needs with business goals.
How Beyond Borders HR Can Help You
These 2024 employment legislation changes for Singapore can be challenging for employers to process independently. Beyond Borders HR, a global HR consulting firm, stands ready to assist businesses in understanding and implementing these changes effectively. With our extensive expertise in global HR practices, we ensure that your organization stays compliant with the evolving regulatory landscape. Reach out to Beyond Borders HR for tailored solutions, expert guidance, and seamless integration of these legislative updates into your HR policies and practices. Our team is dedicated to empowering your business with the knowledge and support needed to thrive in this dynamic regulatory environment.
