Workplace & Employment

Follow Our Latest COVID-19 Updates

SINGAPORE: Managing Manpower Costs: New Guidelines on Wage Cuts and Updated Tripartite Advisory on Retrenchments

In an encouraging sign, Singapore's third-quarter economic growth has expanded by 7.9% in the third quarter from the 13.2% contraction in the preceding quarter. However the economic fallout of COVID-19 will not dissipate anytime soon, especially as new waves of infections continue to surge worldwide. While the government has been encouraging businesses to retain workers where possible, it is now acknowledged that retrenchments and/or wage cuts may be inevitable. Accordingly, there have been two new developments for employers to take note of:

1. Release of the National Wages Council's ("NWC") 2020/2021 Supplementary Guidelines ("Supplementary Guidelines"), which will apply from 1 November 2020 to 30 June 2021; and
2. Updates to the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment as of 17 October 2020 ("Updated Advisory") issued by the tripartite partners, being the Ministry of Manpower ("MOM"), the National Trades Union Congress ("NTUC") and the Singapore National Employers Federation ("SNEF").

The Supplementary Guidelines sets out principles for wage cuts, while the Updated Advisory provides guidance on conducting retrenchment exercises. We provide an overview of both developments in this Update.

SINGAPORE: Employment Agencies to Comply with New Licence Conditions for Fair Hiring

With effect from 1 October 2020, the Ministry of Manpower will require all employment agencies in Singapore ("EAs") to comply with the fair recruitment requirements set out in the Tripartite Guidelines on Fair Employment Practices ("TGFEP") when recruiting on behalf of their clients. The TGFEP contains fair and merit-based employment guidelines that all Singapore-based organisations are expected to abide by.

These new guidelines will be imposed as new licensing conditions on the EAs, and non-compliance may result in demerit points, suspension or revocation of an EA licence or prosecution.

This Update highlights the new licence conditions that EAs must comply with to ensure fair hiring.

SINGAPORE: Employers Required to Notify Salary Reduction Measures

On 29 May 2020, the Employment (Returns on Salary Reduction Measures) Notification 2020 ("Notification") came into effect. The Notification requires any employer with more than 10 employees who intends to reduce operating expenses by implementing measures that result in the reduction of salary of any employee to submit a return to the Commissioner for Labour in a prescribed form within the prescribed period.

The Ministry of Manpower has earlier issued an advisory titled "Advisory on salary and leave arrangements during Circuit Breaker" that among other things, set out notification requirements for cost-saving measures with salary reductions during the circuit breaker from 7 April 2020 to 1 June 2020. The Notification applies to employers in Singapore with effect from 29 May 2020.

This Update outlines the requirements in the Notification.

SINGAPORE: Resuming Workplace Operations: Safe Management Measures

Following the Multi-Ministry Taskforce's announcement that the circuit breaker measures would be progressively-eased over the coming weeks, the Tripartite Partners have issued Safe Management Measures on 9 May 2020 ("Measures") for employers to establish a system to ensure a safe work environment and minimise the risks of further outbreaks. The Measures issued by the Tripartite Partners must be implemented by employers which are allowed to resume operations, including employers allowed to operate during this period and those permitted to do so after 12 May 2020. For employers resuming operations after the end of the circuit breaker period, the Measures must be in place before they can resume operations at the workplace. An outline of the Measures is set out in this update.

SINGAPORE: Laws Enforcing Telecommuting, Safe Distancing (and More) at Workplace Take Effect 2 April 2020

On 1 April 2020, the Infectious Diseases (Workplace Measures to Prevent Spread of COVID-19) Regulations 2020 ("Regulations") were issued to give legal force to prevention measures against the spread of COVID-19 at the workplace. The Regulations apply throughout the control period of 2 April 2020 to 30 April 2020, inclusive of both dates. Its rapid implementation indicates the gravity of the current situation and the government's determination to ensure compliance. The Regulations apply to employers, principals, and occupiers, and set out prevention measures against the spread of COVID-19 to be put in place at the workplace, including safe distancing and telecommuting.

[Note: Following the Singapore Government announcements on 3 April 2020, new enhanced safe distancing measures will take effect on 7 April 2020. This relates most importantly to the need to work from home. The measures have been significantly tightened, with the critical point that “reasonably practicable” has been removed. The measures critically result in the requirement to close all workplace premises and retail outlets except for certain specified essential services. Non-compliance will result in an offence. This Update must thus be read with reference to these new measures.]

SINGAPORE: Latest - Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment in View of COVID-19

In view of COVID-19, the Ministry of Manpower, the National Trade Union Congress and Singapore National Employers Federation issued an update to their Advisory on Managing Excess Manpower and Responsible Retrenchment ("Advisory") on 11 March 2020. The Advisory sets out possible measures to manage excess manpower and is intended to help employees continue to retain a job amidst a likely prolonged difficult period even as employers work towards keeping their businesses and employees' jobs viable. We highlight some of these updates below.

SINGAPORE: FAQs for Employers: Practical Tips on Dealing with the COVID-19 Outbreak

The COVID-19 outbreak across the world has had a major impact on the economy in many countries, with the Ministry of Trade and Industry downgrading Singapore's 2020 GDP growth forecast to -0.5% to 1.5% on 17 February 2020. With the economy and businesses taking a beating, all quarters in Singapore are holding on to the hope that the situation in Singapore will stabilise soon. The Singapore Government has taken a practical approach to contain the spread of the virus while urging the public to continue business as usual where possible.

As businesses adapt to the evolving situation, we address some frequently asked questions on an employer's obligation to comply with the Singapore Government's defensive measures and to provide a safe workplace for their employees while maintaining business continuity.