12 December, 2017
The Ministry of Manpower (“MOM”), the National Trades Union Congress and the Singapore National Employers Federation jointly launched:
- the Tripartite Standard on the Employment of Term Contract Employees on 31 July 2017;
- the Tripartite Standard on Flexible Work Arrangements on 6 October 2017;
- the Tripartite Standard on Grievance Handling on 20 October 2017; and
- the Tripartite Standard on Recruitment Practices on 16 November 2017
(together, the “Tripartite Standards”).
These are four of a series of Tripartite Standards that will be rolled out successively in the future.1
Separately, on 1 October 2017, the MOM announced that the salary criteria for work pass holders to qualify for dependant privileges will be raised from S$5,000 to S$6,000 (for spouses and children) and S$10,000 to S$12,000 (for parents) with effect from 1 January 2018.
Last but not least, the MOM also recently added several new questions on the employer’s recruitment practices in the Employment Pass (“EP”) online application form.
The Tripartite Standards
Background
The Tripartite Standards represent a new tripartite initiative to increase the adoption of fair and progressive workplace practices in Singapore. Each Tripartite Standard specifies a set of verifiable and actionable employment practices in a specific area of employment which employers can publicly adopt.
The Tripartite Standards fill the gap between employment laws and Tripartite Guidelines (which all employers are required or expected to comply with) and Tripartite Advisories, which encourage employers to adopt the more progressive workplace practices set out therein.
While the adoption of the Tripartite Standards is not mandatory, employers which elect to adopt them will be able to distinguish themselves from their counterparts as employers of choice, thereby enhancing their ability to attract and retain talent. The benefits of adopting the Tripartite Standards include:
- Public recognition on the website of the Tripartite Alliance for Fair and Progressive Employment Practices (“TAFEP”);
- Ability to use the Tripartite Standards logomarks in job advertisements and marketing collaterals; and
- Invitations to TAFEP’s workshops, seminars and conferences and access to TAFEP’s resources and advisory services.
The Tripartite Standard on the Employment of Term Contract Employees
The Tripartite Standard on the Employment of Term Contract Employees sets out three practices concerning term contract employees:
- All term contracts of service of 14 days or more which are renewed within one month from the end of the previous contract are to be treated as continuous service for the purposes of granting or accruing statutory leave benefits under the Employment Act and the Child Development Co- Savings Act. This is to avoid the resetting of term contract employees’ leave entitlement to the statutory minimum by the employer each time their contracts are renewed.
- The above “continuous service” period(s) are also to be used for purposes of calculating the minimum notice period in instances of early termination or non-renewal of the term contract.
- Employers are encouraged to provide training to term contract employees so that they can perform their jobs effectively.
As of 22 November 2017, 474 employers had adopted the Tripartite Standard on the Employment of Term Contract Employees.
The Tripartite Standard on Flexible Work Arrangements
The purpose of the Tripartite Standard on Flexible Work Arrangements is to recognise the benefits of flexible work arrangements (“FWAs”) to both employers and employees. FWAs refer to variations from usual work arrangements and these include:
- Flexi-load (e.g. part-time or job sharing);
- Flexi-time (e.g. staggered hours and compressed work week); and
- Flexi-place (e.g. telecommuting).
Employers who adopt this Tripartite Standard are expected to:
- appoint a member of the senior management to champion FWAs.
- inform their employees of the types of FWAs available, the process to request for FWAs and their expectations on the responsible use of FWAs.
- communicate the outcomes of FWA applications to their employees in a timely manner and document such outcomes. If they are unable to grant a request for FWA, supervisors will then engage with the employees on the reasons and where possible, discuss suitable alternatives.
- train their supervisors to (i) objectively evaluate employees’ applications for FWAs based on the suitability of the relevant FWA and (ii) set work expectations and manage and appraise employees on FWAs fairly based on work outcomes.
As of 22 November 2017, 285 employers had adopted the Tripartite Standard on Flexible Work Arrangements.
The Tripartite Standard on Grievance Handling
Employers who adopt this Tripartite Standard are expected to:
- establish a grievance handling procedure for employees to raise grievances and for the employer to conduct proper investigations and respond to the affected persons.
- communicate the grievance handling procedure to all employees clearly and document such procedure in a written form (e.g. collective agreement, company circular or memorandum).
- state the appropriate authority in the company to hear the appeal and set a reasonable timeframe for action to be taken. The employee should be given the right to bring the unresolved grievance to the next level, or request for the assistance of the union where applicable.
- train supervisors and appointed staff to manage employee feedback and grievances, and to work with the union if the company is unionised.
The TAFEP has also published a Grievance Handling Handbook which offers practical tips on managing grievance within the workplace and brings employers through the grievance handling process.
As of 22 November 2017, 255 employers had adopted the Tripartite Standard on Grievance Handling.
The Tripartite Standard on Recruitment Practices
This Tripartite Standard sets out the following specifications concerning the recruitment practices of an employer:
- Job advertisements should only state selection criteria that are related to qualifications, skills, knowledge and experience required for the job. Where specific attributes (e.g. proficiency in a particular language or the need for employees of a particular gender) are needed, the reasons should be stated clearly in the job advertisements.
- Job application forms should only ask for information that is relevant to assess an applicant’s suitability for a job. Applicants should not be required to provide information on their age, date of birth, gender, race, religion, marital status and family responsibilities (including whether an applicant is pregnant or has children) and whether they have disability, unless such information is needed to assess the applicant’s suitability for the job. If such data is required, the purpose should be stated clearly.
- Employers should consistently use a set of relevant and objective selection criteria to shortlist and select candidates in job interviews. A proper record of the interview, assessment process, test (if any) and job offer should be kept for at least one year. Unsuccessful candidates should be informed of the outcome of their interview. Hiring managers and staff should also be trained to conduct fair and unbiased interviews.
As of 22 November 2017, i.e. less than a week after its launch, 206 employers had adopted the Tripartite Standard on Recruitment Practices.
Commentary on the Tripartite Standards
Singapore has traditionally been known as a reasonably employer-friendly jurisdiction. The introduction of the Tripartite Standards is part of the shifting trend to make Singapore more employee-friendly by way of soft touch measures meant to encourage employers in adopting fair employment practices. In that context, the Tripartite Standards initiative constitutes a positive step in the development of a more holistic framework for employment practices in Singapore. Employers should take note of these Tripartite Standards as they offer a golden opportunity for organisations to distinguish themselves in specific key employment and workplace practices. Government ministries and companies across sectors, both local and international, have already adopted all four Tripartite Standards: CapitaLand, China Life Insurance, Coca-Cola Singapore Beverages, Mandarin Oriental Singapore, Nanyang Polytechnic, Parkway Group and HSBC, to name just a few. As more organisations adopt these Tripartite Standards, we expect that others may soon sense pressure to justify both internally and externally why they have not done so.
1 In the opening speech at the Tripartite Event on Fair and Responsive Management of Disputes for All Employees on 20 October 2017, the Minister for Manpower highlighted that the tripartite partners are in active discussion on launching more Tripartite Standards covering areas such as procurement of services (including those from freelancers), the conduct of retrenchment exercises, age-friendly workplace practices and contracting with self-employed persons.
For further information, please contact:
Laure de Panafieu , Counsel, Head of Employment & Incentives, Asia , Linklaters
laure.de_panafieu@linklaters.com
