Singapore’s Workplace Fairness Bill: What Employers Need to Know

Written by PayrollServe | Jan 24, 2025 2:17:01 AM

On 8 January8th 2025, Singapore took a significant step forward in protecting workers’ rights by passing the Workplace Fairness Bill. Set to be implemented in 2026 or 2027, the bill aims to reinforce fair and harmonious workplace norms while addressing the evolving challenges posed by changing demographics and economic landscapes.

Key Factors of the Workplace Fairness Bill

Protected Characteristics
At the centre of the Workplace Fairness Bill are five categories of protected characteristics:

Age	Ensures that workers are hired and promoted based on their skills, preventing age discrimination.
Nationality	Prevents discrimination based on country of origin or citizenship status.. In this category Under this law, preferring Singaporeans and Singapore Permanent Residents over foreigners is not considered discriminatory. under this la
Sex	This category coversProvides protection against gender-based discrimination, including marital status, pregnancy status, and caregiving responsibility.
Race	Prevents discrimination based on race or ethnicity, religious beliefs and practices, as well as language abilities and preferences.
Disability	Protects individuals with physical impairments, mental health conditions, and neurodevelopmental disorders.

These categories encompass a wide range of potential discrimination grounds and reflect on Singapore’s commitment to creating an inclusive work environment.

Scope of Employment Decisions Covered
The bill’s protections extend across various stages of employment, including:

Hiring	Prohibits discriminatory practices during recruitment, including job advertisements and the selection process. This protection extends to the pre-employment phase, addressing discrimination before an employer-to-employee relationship is established.
Appraisals	Safeguards employees from biased performance evaluations, ensuring assessments are based on merit and job performance rather than protected characteristics.
Training	Employers are prohibited from making discriminatory decisions regarding access to training opportunities and professional development programmes.
Promotion	Ensures that career advancement opportunities are based on merit and capability rather than protected characteristics.
Dismissal	Protects employees from discriminatory termination, requiring dismissals to be based on legitimate reasons rather than prejudice.

This comprehensive coverage ensures that employees are shielded from discrimination throughout their career journey.

Objective and Significance

The Workplace Fairness Bill represents a proactive step in reinforcing fair employment practices in Singapore. This It addresses the challenges posed by an increasingly diverse workforce and evolving economic conditions. Importantly, the legislation complements existing measures such as the Tripartite Guidelines for Fair Employment Practices (TAFEP), creating a robust framework for workplace equality.

Exceptions and Limitations

While comprehensive, the bill includes certain exceptions to ensure practicality:

Employers with fewer than 25 employees are exempt for the first five years after after the bill’s implementation. of bill.

Genuine occupational requirements that may necessitate considering protected characteristics.

National security considerations.

These exceptions aim to balance the need for fairness with the practical business considerations and national interests.

Implementation Process of the Workplace Fairness Bill

The introduction of the Workplace Fairness Bill will be phased through two separate bills:

The first bill establishes the legislative framework and basic requirements.
Introduced in Parliament on 12 November 2024, this bill establishes the legislative framework and basic requirements, including:
- Protections against discrimination based on protected characteristics.
- Process to preserve harmonious workplaces and resolve disputes .
- Requirements for employers to implement grievance-handling procedures.
- Prohibition of retaliatory actions against employees who report workplace discrimination.
The second bill will detail the enforcement powers and penalties.
Introduced on 8 January 2025, this bill focuses on:
- Detailed enforcement powers
- Specific penalties for violations
- Claims procedures

Enforcement Measures
To ensure compliance, the bill introduces a tiered system of enforcement measures:

Educational workshops for first-time offenders	For less severe breaches, especially by first-time offenders, the Ministry of Manpower (MOM) can issue directions to attend educational workshops. This approach aims to raise awareness and improve understanding of fair employment practices, allowing employers to rectify their behaviour without immediate punitive measures.
Administrative financial penalties for repeat offenders	For more serious or repeated violations, MOM can impose administrative financial penalties. These penalties are designed to deter misconduct and can be enforced through a contravention notice. The notice may be enforced against an employer with the permission of a District Court, in the same manner as a court judgment.
Civil penalties for serious or persistent cases	For the most severe breaches, classified as "serious civil contraventions," the Commissioner for Workplace Fairness may, with the consent of the Public Prosecutor, bring an action in court to seek an order for a civil penalty. For a body corporate, the maximum penalties are up to $250,000 for repeat offences, and for individuals, up to $50,000 for repeat offences.

Impact on Employers
The bill introduces new obligations for employers, including:

Implementing grievance handling processes	Employers must establish clear, accessible grievance procedures that enable employees to report discrimination concerns safely and confidentially. These processes should be fair, transparent, and designed to address complaints effectively while protecting employees from potential retaliation. By creating a robust reporting mechanism, employers can demonstrate their commitment to workplace fairness and build trust within their organisation.
Providing training on fair employment practices	Employers must develop comprehensive training programmes to educate staff, especially managers, about the Workplace Fairness Bill. These programmes should cover protected characteristics and prohibited discriminatory practices, ensuring employees understand their responsibilities in creating a fair and inclusive workplace.
Reviewing and updating HR policies	Employers must comprehensively review and update their existing policies to align with the Workplace Fairness Bill, focusing on eliminating discriminatory practices in recruitment, promotion and termination processes. The revised policies should demonstrate the organisation’s commitment to workplace fairness and equal opportunity.
Potential challenges and adaptations	Implementing the Workplace Fairness Bill may pose financial challenges for smaller companies, with initial costs for policy updates and training. However, these investments are expected to create a more inclusive workplace that ultimately benefits organisational productivity and employee relations.

While these requirements initially pose challenges, they are expected to contribute to a more productive and harmonious work environment in the long term.

Future Considerations

As the Workplace Fairness Bill is implemented, several areas may warrant future consideration.

Potential expansion of protected characteristics (e.g., sexual orientation and gender identity).

Ongoing review of the legislation’s effectiveness and impact.

Adaptation to emerging workplace trends and challenges.

The government has indicated its openness to reviewing and refining the legislation as needed to ensure its continued relevance and effectiveness.

How can PayrollServe help?

With Singapore’s rapidly evolving labour laws, PayrollServe can offer support to navigate these changes efficiently:

Free HR Health Check Questionnaire: Complete our questionnaire to assess your HR Health.

Strategic Policy Recalibration: We can assist to craft policies to meet legal requirements and foster positive policy relations, ensuring preparedness for future changes.

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