Singapore proposes a law to strengthen non-discriminatory workplace rules, introduce penalties

SINGAPORE is introducing legislation to strengthen anti-discrimination in the workplace, three years after then-Prime Minister Lee Hsien Loong announced the intention at the National Day 2021 rally.

Unveiled in Parliament on Tuesday (November 12), the Workplace Equity Bill strengthens protections against discrimination, sets out dispute resolution processes and expands the actions that can be taken against erring employers.

It is the first of two bills that make up the new Fairness in the Workplace Legislation (WFL), both of which are expected to come into force from 2026 or 2027.

The second bill will cover the rights and processes for making private claims related to workplace fairness, including expanding the scope of the existing Employment Claims Tribunal, which hears disputes about pay and unfair dismissal. It will be submitted at a later date.

The changes are based on the recommendations of a tripartite committee which were released and accepted by the government in August 2023.

The new laws aim to “preserve and strengthen” existing workplace fairness norms, the Ministry of Manpower (MOM) said. They build on existing efforts such as the Tripartite Guidelines on Fair Employment Practices and the Fair Consideration Framework.

Putting in protections

If enacted, the law would prohibit adverse employment decisions based on five sets of protected characteristics: age; nationality; gender, marital status, pregnancy status and caring responsibilities; race, religion and language; and disabilities and mental health conditions.

These protections cover all stages of employment, including hiring, length of employment and termination.

For other forms of discrimination not covered by the new law, employees can continue to rely on the tripartite guidelines, which will be retained.

To provide flexibility for business needs, WFL will also allow companies to make employment decisions based on a protected characteristic if it is a genuine occupational requirement.

It sets out four circumstances in which this can be done. First, it can be for reasonable job performance, such as language fluency for interpreters.

Second, it may be for health and safety reasons, such as considering mental health for jobs involving the handling of weapons.

Third, it may be for privacy reasons, such as gender hiring in spas. Fourth, it may be for legal and regulatory reasons, such as minimum age limits for learner bus drivers.

If challenged about these decisions, employers will have to explain how the protected characteristic is related to the job.

Other considerations and objectives were also taken into account, MOM said.

These include equitable access to opportunities for local people. The WFL will legislate the existing requirements for job advertisements under the Fair Consideration Framework.

According to them, employers applying for employment permits or S permits for foreign employment must first advertise on the official job portal MyCareersFuture and fairly consider all local applicants.

WFL will also allow employers to prefer to hire local employees for various business and operational considerations, as well as disabled and senior citizens.

Religious organizations will be allowed to make hiring decisions based on religion.

To begin with, firms with fewer than 25 employees will be exempt from the WFL as they may not have the corporate powers to comply. However, it will be reviewed five years after the legislation comes into force, and such companies must still adhere to the tripartite guidelines.

Putting in lawsuits

The WFL also requires companies to have processes for handling grievances so that disputes can be resolved internally.

MOM said it would not be “too prescriptive” about the format of such processes as companies have different needs and capabilities.

Taking cues from tripartite standards, WFL will require employers to investigate the complaint, review it and inform the employee of the outcome, while maintaining employee confidentiality. All employees must be informed of this process.

Under the WFL, employees who come forward will be protected from employer retaliation. For example, employers will not be allowed to fire them or seek damages from them because of their reports of discriminatory practices.

MOM said that as far as possible, workplace issues should be resolved at the company level, but employees can approach their unions or the tripartite alliance for more help.

Imposition of penalties

MOM said that instead of focusing on punishments, an approach that receives education is needed to maintain workplace harmony and change mindsets.

However, the new legislation sets out penalties for employers who break the rules, to “strike a balance between education, rehabilitation and effective deterrence”.

Based on the seriousness of the violation, MOM may issue formal instructions to remedy the violations; impose fixed quantitative administrative fines; or to recommend higher quantum of fines to be imposed by the courts.

MOM’s tripartite partners, the National Trade Union Congress (NTUC) and the Singapore National Employers Federation (SNEF), have expressed their support for the upcoming legislation.

The legislation is in line with NTUC’s support, said Deputy Secretary-General Patrick Tay. NTUC also provides union members with guidance, assistance in mediation and support in pursuing claims, while those in unionized companies can approach MOM for conciliation.

At the Labor Claims Tribunal, union members can make a claim of up to $30,000, compared with claims of up to $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 gives individuals the redress they need, but also promotes a workplace culture that minimizes litigation.”

Several years before implementation and the initial exemption for smaller companies, employers have an opportunity to review and strengthen their employment practices.

Employers should see WFL as “more than a compliance requirement” and instead cultivate cohesive and inclusive workplaces as strategic assets, SNEF added.