Analysis: Singapore laws redefining work in 2024-25
SINGAPORE – From pioneering flexible work arrangements to introducing statutory benefits for platform workers, 2024 was a watershed moment for Singapore's employment landscape – a year of seismic shifts and transformative reforms.
With further legislative initiatives set to cascade into 2025, these changes reflect the nation’s commitment to cultivating fairer and more inclusive workplaces.
1. Workplace Fairness Legislation (WFL)
A game-changer in employment law, the Workplace Fairness Legislation (WFL), slated for enactment in the latter half of 2024, represents Singapore’s first comprehensive effort to tackle workplace discrimination.
According to the Ministry of Manpower (MoM), WFL prohibits discrimination based on a spectrum of characteristics, including nationality, age, gender, marital status, caregiving responsibilities, race, religion, language, disability, and mental health conditions. The law also requires employers to establish robust grievance-handling mechanisms while safeguarding complainants against retaliation.
Notably, small firms with fewer than 25 employees are temporarily exempt, with this position under review in five years – a clear nod to balancing practicality with ambition. The legislation has been heralded as a cornerstone for combatting workplace prejudice, with workers' advocacy groups, including the National Trades Union Congress, voicing strong support.
Discover more about the Workplace Fairness Legislation in our detailed report.
2. Tripartite guidelines on flexible work arrangements (FWAs)
Singapore turned the page on rigid work structures with its tripartite guidelines on flexible work arrangements (FWAs), effective from 1 December this year. These guidelines give employees a stronger voice in shaping their work-life balance.
Right to request: Employees, upon completing their probation, can formally request FWAs without justifying their business impact.
Two requests annually: Employees are now allowed up to two formal requests per year, doubling the previous allowance.
Clear processes: Employers must establish defined systems for submitting and evaluating requests, with timely responses mandatory.
Diverse options: FWAs encompass flexi-place, flexi-time, and flexi-load arrangements, offering flexibility in location, hours, and workload.
The guidelines are a lifeline for employees seeking greater autonomy while challenging businesses to rethink traditional workflows.
For insights on implementing FWAs, read our quick guide.
3. Amendments to Employment Pass (EP) criteria
In a move to stay ahead of the curve, the MoM has revised the qualifying salaries for Employment Pass (EP) applications:
General sectors: The minimum monthly salary rises from S$5,000 to S$5,500 (US$4,050 to US$4,455), with higher thresholds for older applicants.
Financial services: The minimum salary jumps from S$5,500 to S$6,200 (US$4,455 to US$5,030), also scaling with age.
These changes, effective from 1 January 2025 for new EPs, and from 1 January 2026 for renewals, underline Singapore’s commitment to attracting top talent while ensuring fair remuneration.
4. Enhanced family-friendly policies
Prime Minister Lawrence Wong’s National Day Rally speech unveiled measures to rewrite the rulebook on family-friendly workplaces:
Paternity leave: From 1 April 2025, eligible fathers will enjoy four weeks of government-paid paternity leave, double the current provision.
Shared parental leave: From the same date, an additional six weeks of shared parental leave will be introduced, increasing to 10 weeks from 1 April 2026.
These initiatives are a shot in the arm for work-life balance, promoting shared parenting and empowering families to thrive.
5. Platform Workers Bill
The Platform Workers Bill breaks new ground in providing protections for gig workers, including delivery and ride-hailing professionals long sidelined in the informal economy.
As first reported by People Matters, the bill introduces a bespoke framework addressing three key areas:
1. Financial safeguards for work injuries.
2. Enhanced housing and retirement adequacy.
3. Greater representation.
Moreover, platform operators will now contribute to workers' Central Provident Fund accounts, enabling retirement savings and access to housing benefits. These changes reflect a tectonic shift in acknowledging gig workers’ essential role in the economy.
6. Employer of Record (EOR) arrangements
Singapore is closing loopholes with a new ruling affecting Employer of Record (EOR) arrangements. Non-Singaporean companies can no longer use EORs to sponsor work passes for foreigners intending to work locally.
The MoM clarified that foreigners must be hired directly by Singapore-based employers to obtain work passes, as presented in this report by People Matters. This measure tightens compliance, ensuring foreign professionals integrate seamlessly into the local workforce.
7. Guidelines on non-compete clauses
With guidelines on non-compete clauses expected in 2025, employers may need to revisit existing contracts. Currently governed by common law, these forthcoming rules aim to provide clarity on enforceability, potentially curtailing overly restrictive terms.
These developments paint a vivid picture of Singapore's employment ecosystem in flux – a balancing act between creating opportunities and levelling the playing field.
For businesses, it’s a chance to stay ahead of the curve; for employees, it’s a beacon of progress towards a fairer, more inclusive workplace.