Upcoming Employment-Related Changes

There are a number of upcoming employment-related changes in Singapore that are expected to come into effect towards the end of 2024 and in 2025. These include the enhancement of parental leave, the implementation of financial support schemes for certain eligible employees, the implementation of new guidelines, including guidelines on restrictive employment clauses and guidelines on flexible work arrangements, and an increase in the minimum salary requirements for work pass application for foreign employees.

The upcoming changes are expected to positively impact Singapore’s employment landscape by fostering a more inclusive and supportive work environment. 

1. Mandatory 4 weeks paternity leave for eligible fathers

The current paternity leave entitlements for eligible fathers and the upcoming changes are as follows: 

• Current entitlement: Eligible fathers are entitled to 2 weeks of government paid paternity leave with the option for employers to grant an additional 2 weeks of government paid paternity leave on a discretionary basis.
• Upcoming changes with effect from 1 April 2025: The additional 2 weeks of government paid paternity leave (which employers currently have the option to offer on a discretionary basis) will be made mandatory. As such, eligible fathers will be entitled to 4 weeks of government paid paternity leave.

2. Additional shared parental leave

The current shared parental entitlements for eligible parents and the upcoming changes are as follows: 

• Current entitlement: Eligible fathers may share up to 4 weeks of their spouse’s government paid maternity leave.
• Upcoming changes:
  • With effect from 1 April 2025: An additional 6 weeks of government paid shared parental leave will be provided on top of maternity leave to be shared between the parents.
  • With effect from 1 April 2026: The additional 6 weeks of government paid shared parental leave (to be in effect from 1 April 2025) will be increased to 10 weeks of government paid shared parental leave.  

3. Financial Support Scheme

A new SkillsFuture Jobseeker Support scheme will give temporary financial support to those who have been retrenched.

Those who are affected are entitled to get up to S$6,000 for a period of up to 6 months while they undergo training, career coaching and job matching.

4. SkillsFuture Level-Up programme

A new training allowance under the SkillsFuture Level-Up programme will take effect in 2025. Every Singapore national aged 40 and above will receive an allowance of up to S$3,000 a month if they go for full-time training. The cap is 24 months’ allowance, amounting to S$72,000.

5. Guidelines on Restrictive Covenants 

On 6 February 2024, the Minister of Manpower (the “Minister”) announced that the Ministry of Manpower was working together with the tripartite partners (i.e. the National Trades Union Congress and the Singapore National Employers Federation) to develop guidelines on the reasonable use of restrictive employment clauses such as non-compete or restraint of trade clauses which prevent retrenched and other employees from finding new jobs (the “RC Guidelines”). The RC Guidelines are currently being finalised and are expected to be issued by the end of 2024.

In responding to questions in parliament on retrenchment practices and the use of restrictive employment clauses, the Minister said that he understands that overly restrictive non-compete or restraint of trade clauses can disadvantage retrenched employees and create difficulties for them in finding new employment. The Minister also highlighted that the Ministry of Manpower does not condone any exploitative employment contracts and that Singapore’s approach to fair employment and retrenchment practices is a balanced one that protects workers.

Hence, the RC Guidelines aim to help educate employers on the use of such restrictive employment clauses and to shape norms. While we do not have much information on the RC Guidelines at the moment, we would expect that these would also guide employers in tailoring restrictive employment clauses in employment contracts in a manner deemed reasonable by the Singapore courts and the Ministry of Manpower, and enforceable by the Singapore courts and the Ministry of Manpower.

Currently, the only advisories that are applicable to retrenchment are the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment and the Tripartite Guidelines on Mandatory Retrenchment Notifications. The RC Guidelines will be issued and used in addition to these existing advisories. There are currently no advisories on restrictive covenants.

It is currently unclear whether there will be any penalties for non-compliance with the RC Guidelines. However, if employers do not follow the existing advisories, the Tripartite Alliance for Fair and Progressive Employment Practices will step in and require the employer to adhere to the advisories. Generally, most employers are cooperative when approached, showing that the advisories are working well without the need for additional penalties. While we do not have much information on the RC Guidelines at the moment, we are of the view that this infers that the RC Guidelines may not provide for any penalties for employers who do not comply with them.

Further information on the RC Guidelines has not been provided and we will offer more information once this has been released.

6. Guidelines on Flexible Work Arrangement Requests

On 4 March 2024, the Committee of Supply 2024 announced that the Tripartite Guidelines on Flexible Work Arrangement Requests (“FWAR Guidelines”) were being developed. 

On 16 April 2024, it was further announced that the Singapore Government had accepted all recommendations (further listed below) by the Tripartite Workgroup on the FWAR Guidelines and that these would come into effect on 1 December 2024.

Once implemented, the FWAR Guidelines will shape norms and expectations around flexible work arrangements, by setting out how employees should request flexible work arrangements, and how employers and supervisors should handle such requests.

The FWAR Guidelines aim to make it easier for employees to request flexible work arrangements, while acknowledging that employers continue to have the prerogative on work arrangements. Employers will be required to ensure that they comply with the FWAR Guidelines, which are mandatory. It is currently unclear if there will be any penalties for non-compliance. However, we understand that employees can seek assistance from the Tripartite Alliance for Fair and Progressive Employment Practices should employers not adhere to the requirements in the FWAR Guidelines.

A copy of the FWAR Guidelines can be found here. Please note that the FWAR Guidelines set out the minimum requirements, and do not preclude employers from adopting more progressive practices.

A summary of the recommendations by the Tripartite Workgroup on the FWAR Guidelines, which have been accepted by the Singapore Government are as follows:

• The FWAR Guidelines should establish a clear set of workplace norms around requesting flexible work arrangements and considering such requests to better manage employees’ and employers’ expectations on the process and their respective obligations.
• The FWAR Guidelines should guide the process of requesting and considering flexible work arrangements, and not the outcome of flexible work arrangement requests.
• The FWAR Guidelines should require employers to properly consider flexible work arrangement requests based on business grounds, and employees to request and use flexible work arrangements responsibly.
• The FWAR Guidelines should only apply to formal flexible work arrangement requests such as requests that are documented and contain the information needed for the employer to make an informed decision.
• The FWAR Guidelines should cover all employees who have completed probation, the duration of which may be determined by employers.
• The FWAR Guidelines should not require employers to consider flexible work arrangement requests from jobseekers. However, employers could still state their flexible work arrangement approach or policy in job advertisements and interviews to manage jobseekers’ expectations on the flexible work arrangements they can provide.
• The FWAR Guidelines should cover all employers, including Small and Medium Enterprises. Guides and templates should be provided to help all employers comply.
• An educational and enabling approach should be implemented when adopting the FWAR Guidelines, with a focus on equipping employees and employers with the resources and skills to make and properly consider flexible work arrangement requests respectively.
• Communications and engagements regarding the FWAR Guidelines should be strengthened to help employers understand how flexible work arrangements can help their businesses and raise awareness of the types of flexible work arrangements available.
• Greater support such as resources and trainings should be provided to employers to build and invest in critical flexible work arrangement implementation capabilities. 

7. Increase in minimum monthly qualifying salary for employment passes in 2025

The Minister announced on 4 March 2024 that there would be an increase in the minimum monthly qualifying salary for employment passes in 2025.

By way of background, the employment pass is generally for foreign professionals, managers and executives who meet the minimum employment pass qualifying salary and pass the points-based Complementarity Assessment Framework (“COMPASS”) (unless exempted). Please note that in addition to meeting the minimum qualifying salary and passing COMPASS, employers must also continue to meet the Fair Consideration Framework job advertising requirement before submitting new employment pass applications.

Currently, the minimum monthly qualifying salary for employment passes is as follows:

• For applicants working in the financial sector: at least S$5,500 per month**
• For applicants working in all other sectors: at least S$5,000 per month**

Following the increase in 2025, the minimum monthly qualifying salary for employment passes is expected to be as follows:

• For applicants working in the financial sector: at least S$6,200 per month**
• For applicants working in all other sectors: at least S$5,600 per month**

Please note that the minimum monthly qualifying salary increases progressively with age. Hence, more experienced candidates require higher qualifying salaries.

The new minimum monthly qualifying salary for employment passes will be applicable to new employment pass applications from 1 January 2025. The same will only be applicable to employment pass renewal applications from 1 January 2026.

Comment

We expect the above changes to be positively welcomed by both employers and employees. With the increasing ageing population in Singapore and the increased need for employees to juggle both work and family caregiving needs, the changes would not only help employees ease such burdens by supporting them in the various stages of their life but also help employers by building a more motivated and stable workforce.