Parliament passes second Workplace Fairness Bill, paving way for roll-out in end-2027

The landmark Workplace Fairness Act (WFA) took a major step forward on Nov 4, after Parliament passed the second of two Bills establishing a new framework for workers to seek redress for workplace discrimination, while also introducing safeguards against frivolous claims.

The first Bill, which defined protected characteristics and employers’ obligations, was passed on Jan 8.

This paves the way for workplace fairness laws to take effect in end-2027, near the tail end of the estimated launch window of 2026 or 2027 announced previously.

“We have heard feedback from various stakeholders. (The Ministry of Manpower) recognises that ample preparation is critical for successful implementation,” Manpower Minister Tan See Leng said in a speech to introduce what had been known as the Workplace Fairness (Dispute Resolution) Bill for its second reading.

The lead time is needed for employers to review their processes, and workers to know their rights and what constitutes a legitimate discrimination claim, he said.

“We will also need time to ensure our mediators are well-trained to effectively facilitate workplace discrimination cases,” he said, adding that the timeline may still be adjusted if needed.

This latest Act specifies the claim limits and identifies the entities that disputing parties must deal with at each stage, among other things. The earlier Act prohibits discrimination based on age; nationality; sex, marital status, pregnancy status and caregiving responsibilities; race, religion and language; and disability and mental health conditions.

In his speech, Dr Tan spoke on how the latest Act is intended to encourage amicable resolution, first via companies’ internal grievance-handling process, before embarking on mediation.

On mediation, he noted that workplace fairness disputes can be brought to the Employment Claims Tribunals (ECT) or the High Court for adjudication only as a last resort, should mediation fail.

Dr Tan also outlined moves to build up the capabilities of mediators to deal with complex, higher-value disputes above $30,000.

The Government will appoint other mediation service providers, such as the Singapore Mediation Centre, to handle such higher-value claims.

Currently, the Tripartite Alliance for Dispute Management (TADM) handles compulsory mediation for salary and unfair dismissal claims of up to $20,000, or up to $30,000 for unionised workers.

Dr Tan said TADM mediators will also receive customised training on a host of mediation approaches to deal with complex workplace discrimination disputes, as well as inclusivity and sensitivity training.

“We will set more stringent requirements on mediators for higher-value claims, including possessing legal qualifications or having relevant experience mediating employment disputes.”

He also elaborated on the decision to expand the ECT’s jurisdiction to hear workplace discrimination claims of $250,000 and under, far higher than the existing limit of $30,000 for salary and unfair dismissal claims.

The high limit is to ensure that the vast majority of cases needing adjudication, including those involving professionals, managers and executives who earn higher salaries, are heard by the ECT.

The ECT provides affordable, accessible and swift resolution through a judge-led process in which judges guide parties on the issues in contention and the evidence needed, where lawyers are not allowed, Dr Tan said.

He added: “The expansion of the ECT’s monetary jurisdiction does not mean that we expect workplace discrimination claims to be of higher value than other employment claims today.”

However, higher-value claims above $250,000 are better heard by senior judges on the High Court bench, with legal representation, Dr Tan said.

“This is also the case for other types of high-value employment claims today. I do not expect many workplace discrimination claims to be commenced in the High Court.”

Most cases at the ECT are resolved within six months, while employment-related cases in the State Courts are resolved within 18 months, Dr Tan noted.

Addressing concerns of frivolous and vexatious claims, Dr Tan said employers will be able to apply for such claims to be struck out by judges.

Judges will also be empowered to strike out claims. They can award costs against an individual who pursues a claim that is without merit, he added.

Individuals can also be investigated by the police for abusing court processes.

“If they persist in raising unmeritorious claims, they can be restricted from commencing further legal proceedings.”

Dr Tan also said workers may not know how to go about justifying their claim amounts, while employers may be concerned about unnecessary inflation of claim values.

“(The Ministry of Manpower) will work with tripartite partners to explore ways to address this in the implementation.

“Claimants will still need to prove their losses to justify the damages claimed, and judges will also make a fair and balanced assessment of the reasonableness of the claim amount.”

Dr Tan also said education and outreach efforts for both employers and workers are ongoing, including an upcoming handbook to capture the legal provisions and key principles behind the law that includes illustrations and case studies.

Following Dr Tan’s speech, 18 MPs rose to debate the law.

One key concern raised was the potential for power imbalance between employers and workers – despite the proposed safeguards.

They also sought clarity on how the Government could ensure that both employers and vulnerable workers have access to accurate information and guidance.

Sengkang GRC MPs He Ting Ru and Louis Chua both called for provisions to allow exemptions from mandatory mediation in cases where the process could cause significant distress or retraumatisation to claimants.

Mr Chua, Mr Shawn Loh (Jalan Besar GRC) and labour chief Ng Chee Meng (Jalan Kayu) also urged the Government to allow flexibility in the proposed time limits for workers to lodge claims after an adverse employment decision, especially in exceptional cases.

Mr Loh also asked how the Manpower Ministry would safeguard the privacy of those involved in ongoing proceedings, and prevent details from spilling onto social media.

Rounding up the debate, Dr Tan said small companies with fewer than 25 employees will be exempted from the law for a start while they level up, and this will be reviewed five years after the law is implemented, in reply to a question from Ms Gho Sze Kee (Mountbatten).

He also noted that the time limits reflect what tripartite partners consider reasonable for both employers and employees in various scenarios.

He added that the Manpower Ministry has the discretion to accept late mediation submissions in extenuating circumstances, such as when a worker is incapacitated.

While hearings on discrimination cases will be private, this does not mean judgments will be kept private, he said.

“We agree making Workplace Fairness Act judgments publicly accessible will help employers and workers better understand how the law is applied.

“We are working with the courts on making ECT judgments publicly accessible, and this will include WFA judgments,” he said.

In a statement on Nov 4, the Singapore National Employers Federation said the newly passed Act sends a balanced message to both employers and employees.

“While workplace discrimination will not be tolerated, there must be safeguards against abuse of the claims process and that the penalty for any breach of WFA should be proportional to its severity,” said the trade federation, which represents more than 3,900 companies in Singapore.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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