Overview Of Key Updates On Employment Laws And Guidelines In Singapore – 2025 & Ahead

As part of Singapore's push for a more supportive workplace to remain relevant to a changing workforce, recent legislative developments introduce new obligations for employers, including the structured handling of flexible work arrangement requests, enhancements to paternity leave, the implementation of workplace fairness legislation, additional protections for platform workers and upcoming guidelines on restrictive covenants.

It would be prudent for employers to take note of such changes and their impact on existing policies. This article provides an overview of these developments.

1. Mandatory Consideration of Flexible Work Arrangement (FWA) Requests

From 1 December 2024, employers in Singapore must properly consider and formally respond to FWA requests from employees under the Tripartite Guidelines on Flexible Work Arrangements. This initiative supports a more adaptable work environment and promotes work-life balance while allowing businesses to address operational requirements.

FWA refers to a work arrangement where the employer and employee agree to a variation from the standard work arrangement, which may fall into one or more of the following three broad categories:

1. Flexi-Place: employees can work flexibly from different locations aside from their usual office location (e.g., telecommuting, work-from-home);
2. Flexi-Time: employees can work flexibly at different timings without changes to total work hours and workload (e.g., flex-hours, staggered hours, flexi-shift, compressed work schedule); and
3. Flexi-Load: employees can work flexibly with different workloads along and with commensurate remuneration (e.g., job sharing, part-time work).

Key Requirements:

• In the absence of any formal FWA procedures implemented by employers, employees remain entitled to submit a formal FWA request setting out the date of the request, the type of FWA being requested for (including with respect to frequency and duration), the reason for the request and the start and end date (where relevant). It would be advisable for employers to establish an FWA policy relating to the framework for requests from employees and responses (including requirements as to prescribed form of request document and any other required information, where relevant).
• Requests should be assessed fairly, with operational needs taken into account.
• Employers must provide a written response within two months of receiving the request.
• If a request is denied, employers must provide a valid reason.
• Employers are encouraged to document all requests and decisions.

2. Enhanced Paternity Leave and Shared Parental Leave Scheme

The amendments to the Child Development Co-Savings Act 2001 of Singapore and the resultant enhanced provisions for Government-Paid Paternity Leave and a new Shared Parental Leave scheme will be effective from 1 April 2025.

• Enhanced Government-Paid Paternity Leave: Increased from two weeks (with the option for employers to grant an additional two weeks on a voluntary basis) to a mandatory entitlement of four weeks for eligible fathers of Singaporean children.

• New Shared Parental Leave: Parents of children born on or after 1 April 2025 will be allowed to share up to 10 weeks of paid leave. To ease the transition for employers and provide sufficient time for operational and workforce adjustments, the scheme will be introduced in two phases. Initially, from 1 April 2025, eligible parents will be able to share six weeks of paid leave, with the entitlement increasing to 10 weeks on 1 April 2026.

Presently, it is unlawful for employers to serve a notice of dismissal to female employees on maternity leave. Starting from 1 April 2025, this employment protection will also be expanded to include fathers and adoptive parents who are on government-paid paternity or adoption leave.

3. Workplace Fairness Legislation

The Workplace Fairness Bill was passed in Parliament on 8 January 2025. The upcoming Workplace Fairness Legislation (WFL) aims to strengthen Singapore's commitment to fair and merit-based employment practices, transitioning key aspects of the Tripartite Guidelines on Fair Employment Practices into enforceable legal requirements, and is anticipated to be in effect in 2026 or 2027.

Key Provisions:

• Protection Against Discrimination: Employers will be prohibited from making adverse employment decisions (e.g., hiring, appraisal, training, promotion and dismissal decisions) on the grounds of any protected characteristic: (a) age; (b) nationality; (c) sex, marital status, pregnancy status and caregiving responsibilities; (d) race, religion and language; and (e) disability and mental health conditions.

• Mandatory Grievance Handling Processes: Employers must set up formal procedures for handling workplace discrimination complaints.

• Exceptions: Part 5 of the WFL outlines exceptions for employment decisions based on protected characteristics that are lawful under certain circumstances, which include: (a) genuine job requirements where a protected characteristic is essential for the job; (b) prescribed age requirements; (c) requirement of citizenship or permanent residency; (d) religious groups restricting employment to individuals who are members of their religion; and (e) discrimination in favour of disabled individuals.

• Prohibition on Retaliatory Actions: The WFL protects employees who report workplace discrimination by preventing employers from retaliating against employees who have: (i) initiated legal action against the employer or any other employee under the WFL; (ii) provided evidence or information related to those proceedings; (iii) alleged that the employer or another employee has committed a civil or serious civil violation; (iv) raised a grievance to the employer; or (v) engaged in any of the above actions, or if the employer knows or suspects the employee or another person intends to do so.

• Enforcement and Penalties: The WFL categorises offences into civil contraventions and serious civil contraventions based on their severity. Depending on the severity, noncompliance may result in financial penalties, corrective orders and reputational risks.

4. The Platform Workers Act

The Platform Workers Act 2024 of Singapore, effective from 1 January 2025, introduces safeguards for platform workers covering work injury compensation, Central Provident Fund (CPF) contributions and representation rights.

A "platform worker" is a ride-hail or delivery worker, who has a platform work agreement with a platform operator and is under the management control of the platform operator when providing the platform service in return for payment or benefit in kind.

Key Provisions:

• Enhanced Worker Protections: Ensures same scope and level of work injury compensation for platform workers as for employees under the Work Injury Compensation Act 2019 of Singapore.

• CPF Contributions: Mandatory CPF contributions by platform companies and workers. CPF contribution rates for platform workers and platform operators will be gradually increased to align with those of employees and employers to help platform workers achieve the same level of housing and retirement adequacy as employees.

• Enhanced Representation: Platform workers and platform operators have the right to create their own platform work associations. Recognised platform work associations can negotiate with platform operators to advocate for the interests of platform workers and represent them in work-related disputes. Likewise, platform operators can establish their own associations and be collectively represented as such.

5. Upcoming Guidelines on Restrictive Covenants

In February 2024, the Minister of Manpower of Singapore announced that it was in the midst of developing new guidelines governing the use of restrictive covenants, such as noncompete and nonsolicitation clauses, in employment contracts. Once finalised, these guidelines will provide greater clarity on enforceability and ensure that such restrictions are fair and proportionate.

While limited information is currently available, in the meantime, below are some key considerations for employers:

• Protection of Legitimate Business Interests: Employers must justify restrictive covenants based on business needs, such as safeguarding confidential information.

• Scope and Duration: Restrictions should be reasonable in terms of time and geographical coverage to avoid undue limitation on employees' future job opportunities.

• Balancing Employer and Employee Interests: There should be a fair balance between business protection and workforce mobility.

Conclusion

Recent and upcoming developments in aspects of Singapore employment laws reflect an evolving workforce landscape, prioritising fairness, flexibility and enhanced worker protections. Employers should proactively assess their internal policies, HR practices and employment contracts to ensure compliance with these legal requirements.

For More Information

For further guidance on implementing these changes, or for assistance in reviewing employment policies, please contact Patrick Ong, Director, Selvam LLC, and Sally Kim, Senior Associate, Selvam LLC.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.