Singapore’s employment law operates on three levels. These layers ensure fair treatment and protection for workers while balancing employer interests. Let’s explore each layer in detail.
The Employment Act is binding on all employers in Singapore. It primarily protects low-paid white-collar workers and a significant portion of blue-collar workers. However, it lacks strong enforcement mechanisms for other employee categories.
The Tripartite Alliance, consisting of the Ministry of Manpower (MOM), the National Trades Union Congress, and the Singapore National Employers Federation, issues guidelines. These are not legally binding but are expected to be followed voluntarily. MOM can penalise non-compliant employers by withholding work pass privileges, significantly impacting businesses that rely on foreign labour.
For issues beyond the scope of the Tripartite Alliance’s dispute management framework, such as unfair dismissal, the court system steps in. Claims are limited to S$20,000 or S$30,000 for union members. However, union membership is relatively rare in Singapore.
The Tripartite Guidelines on Fair Employment Practices were reviewed last year. Most are expected to become part of the Employment Act in 2024. This change aims to make rules against discrimination based on gender, age, and ethnicity legally enforceable. As of June 2024, these changes have not yet been implemented.
There are also non-binding expectations about advertising jobs and prioritising Singaporeans before hiring foreigners. This approach aims to create a strong “Singapore core” in the workforce, addressing political concerns about job displacement and rising housing costs due to foreign workers.
From December 1, 2024, new voluntary guidelines on flexible work arrangements will take effect. Employers are expected to prepare for these changes in the months leading up to the deadline.
Foreign companies often misunderstand the voluntary nature of the Tripartite Guidelines. Ignoring these guidelines can lead to severe consequences. For instance, a US corporation’s regional CEO in Singapore shared that MOM suspended their ability to hire any foreign workers because they failed to comply with the guidelines. This example underscores the importance of adhering to the Tripartite Guidelines.
Employment law in Singapore is multifaceted, with layers including the Employment Act, Tripartite Guidelines, and the court system. Upcoming changes and voluntary guidelines further complicate the landscape. Compliance is crucial, and 360 Business Law provides essential support to navigate these complexities.
360 Business Law offers expert legal advice to help businesses navigate Singapore’s complex employment regulations. Our experienced team ensures compliance with the Employment Act and Tripartite Guidelines. We assist in rectifying any issues and provide support for work pass applications and renewals. This comprehensive service ensures your business operates smoothly within the legal framework.
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