Singapore

Singapore updates its retrenchment advisories to support local workers

Oct 26 2020

As a result of COVID-19, businesses in Singapore have implemented cost-saving measures such as reduction of employees’ salaries and retrenchment. In March, the Ministry of Manpower (“MOM“), the National Trades Union Congress (“NTUC“) and the Singapore National Employers Federation (“SNEF“) (together, the “Tripartite Partners“) had jointly updated the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (“Advisory“).

The Tripartite Partners have yet again updated the Advisory on 17 October 2020 (“Updated Advisory“) to emphasise key desired outcomes in any retrenchment exercise, in light of retrenchments being inevitable for some employers despite available government grants and support.

A summary of the updates is as follows:

Maintaining a Singaporean core

The Updated Advisory urges employers to use objective criteria in the selection of employees to be retrenched and strongly encourages them to take a long-term view of their manpower needs, including the need to maintain a strong Singaporean core and preserve jobs as far as possible.

Employers are encouraged to plan ahead and provide employees with reskilling, training and redeployment opportunities, especially for their Singaporean core. Employers can also tap on Government training support schemes and redeployment programmes to aid them in their plans.

Retrenching responsibly, sensitively and providing support

The Updated Advisory provides further guidance on how affected employees are to be notified and the type of support to be given to them.

Employers must comply with the Mandatory Retrenchment Notifications requirement under the Employment Act (Cap. 91) of Singapore, which states that employers must notify the MOM of retrenchments within 5 working days after they notify their affected employees.

Retrenchment benefits would depend on the affected employee’s year(s) of service and employment contract or if not specified in the employment contract, the prevailing norm of the industry and financial position of the company.

Further information on retrenchment notifications and benefits can be found in Annex C of the Updated Advisory.

Additionally, a responsible retrenchment practices checklist for employers to follow can be found in Annex B of the Updated Advisory.

Suggested good practices

Employers are encouraged to:

provide longer notice periods beyond contractual or statutory requirements where possible;
prepare managers for notifying employees of retrenchment in a sensitive manner;
have HR personnel and union representatives onsite to address queries from retrenched employees, and maintain an open communication channel with affected employees;
give affected employees time and space to adjust to the news, before requesting them to vacate their workplaces; and
be sensitive to emotional needs of affected employees, including offering counselling and support.

Employers may also wish to help affected local employees maintain or build up relevant skills by providing training assistance to them post-retrenchment.

Employers are encouraged to adopt the recommendations and guidance in the Updated Advisory, which, alongside its Annexures, can be found here.

For more information on these articles or any other issues involving labour and employment matters in Singapore, please contact Thomas Choo (Partner) of Clyde & Co Clasis Singapore at Thomas.Choo@clydeco.com or visit www.clydeco.com.

For more information please contact Joseph Granato, Communications Manager at L&E Global at joseph.granato@leglobal.org.

Singapore: Rules on Retrenchment Updated in Anticipation of Additional Layoffs amid COVID-19 crisis

Oct 20 2020

The Ministry of Manpower (MOM), National Trades Union Congress (NTUC), and Singapore National Employers Federation (SNEF) have updated their joint advisory on managing excess manpower and responsible retrenchment. The updated advisory provides further guidance on how employers should lay off workers, as additional job cuts are expected amid the COVID-19 crisis. The latest government advisory, announced on 17 October, includes calls for companies to retain Singaporean workers, guidelines on how employers can break the news to their workers more sensitively, as well as to make training programmes part of the post-retrenchment package.

For more information please contact Joseph Granato, Communications Manager at L&E Global at joseph.granato@leglobal.org.

Singapore: Tightening of Work Pass Requirements for Foreigners

Sep 01 2020

To further support employment opportunities of locals in Singapore (i.e. Singapore citizens and Singapore permanent residents), the Ministry of Manpower of Singapore (“Ministry“) announced on 27 August 2020 changes to the Employment Pass (“EP“) and S Pass requirements.

A summary of the changes is set out below:

Increase in EP minimum qualifying monthly salary

From 1 September 2020, the minimum monthly salary requirement for all new EP applicants will be raised from S$3,900 to S$4,500, with more experienced candidates requiring higher salaries.

For all EP renewal applicants, this new salary requirement will only take effect from 1 May 2021.

Increase in EP minimum qualifying monthly salary for Financial Services Sector

Following the abovementioned increase of the minimum monthly salary requirement for all EP applicants, the minimum monthly salary requirement for new EP applicants in the Financial Services Sector will be raised to S$5,000 with effect from 1 December 2020, with more experienced candidates requiring higher salaries.

For EP renewal applicants in the Financial Services Sector, this new salary requirement will only take effect from 1 May 2021.

Increase in S Pass minimum qualifying monthly salary

From 1 October 2020, the minimum monthly salary requirement for all new S Pass applicants will be raised from S$2,400 to S$2,500, with more experienced candidates requiring higher salaries.

For all S Pass renewal applicants, this new salary requirement will only take effect from 1 May 2021.

There will be no changes to S Pass levies and quotas.

Considerations for EP and S Pass applications

The Ministry has emphasised that in light of the COVID-19 pandemic and to encourage employers to build and retain a core of Singapore employees, it would be strictly taking into account the following when considering EP and S Pass applications:

Whether the employer has kept up support of local PMETs (i.e. professionals, managers, executives and Technicians) in its employment; and
Whether the employer has been responsive to government efforts to help recruit and train more Singaporean PMETs.

Fair consideration framework

Currently, under the fair consideration framework, before submitting a new EP application, employers are required to advertise the job vacancy on MyCareersFuture.sg for 14 days and consider local applicants fairly.

With effect from 1 October 2020, the fair consideration framework job advertising requirement will be changed as follows:

The job advertising requirement will extend to new S Pass applications as well; and
The minimum duration that the job vacancy is required to be advertised on MyCareersFuture.sg for both EP and S Pass applicants will be extended to 28 days (from 14 days).

Apart from the above-mentioned changes, the Ministry will put employers whose PMET workforce profiles suggest a bias against locals on the fair consideration framework watchlist, with greater scrutiny given to their EP and S Pass applications.

For more information, please refer to the Ministry’s press release, which can be accessed here.

For more information on these articles or any other issues involving labour and employment matters in Singapore, please contact Thomas Choo (Partner) of Clyde & Co Clasis at Thomas.Choo@clydeco.com or visit www.clydeco.com.

For more information please contact Joseph Granato, Communications Manager at L&E Global at joseph.granato@leglobal.org.

Singapore: Additional Employment Related COVID-19 Subsidies

Aug 19 2020

In light of the COVID-19 situation stabilising in Singapore but noting the weakness of the labour market in Singapore, the Singapore government announced additional support for workers and jobs (“Support“) on 17 August 2020. The Support is designed to provide flexibility for adjustments as the COVID-19 pandemic progresses.

A summary of the employment-related subsidies provided by the Support is set out below:

Extension of Jobs Support Scheme (commonly known as “JSS”)

The Jobs Support Scheme has been extended by a further 7 months from August 2020 until March 2021.

The Jobs Support Scheme support will differ sector to sector ranging from 10% to 50% wage support, with higher wage support provided to sectors that have been severely affected (and expected to continue to be severely affected) (such as aerospace, aviation, tourism and built environment).

Sectors that are managing well such as biomedical sciences, financial services, and information and communications technology will only be provided with 10% wage support until December 2020.

Jobs Growth Incentive

The Jobs Growth Incentive has been introduced to support hiring in growing sectors such as, amongst others, biomedical sciences, financial services, information and communications technology, healthcare and long-term care.

The Jobs Growth Incentive aims to increase headcount of local workers in these sectors over the next 6 months as follows:

The Government will co-pay up to 25% – 50% of salaries (depending on age) of all new local hires for 12 months, subject to a cap.

These companies however must maintain a local workforce size of more than 10 if they want to enjoy the incentive for the full 12 months.

The Ministry of Manpower of Singapore is expected to provide further details later in August 2020.

Apart from the above-mentioned employment-related subsidies, the Support also provides for other subsidies to help individuals and businesses in other areas. For more information on the additional support, please refer here.

Part of the extension of the Jobs Support Scheme is to mitigate the risk of retrenchment during this period, which is expected to escalate. Employers should take into consideration the extension of the Jobs Support Scheme before considering whether they would ultimately need to retrench their employees as a last resort.

Written by Thomas Choo and Heather Lim

Clyde & Co Clasis attorneys are available to assist you with these and other workplace issues. For more information, visit clydeco.com/locations/office/singapore.

For more information please contact Joseph Granato, Communications Manager at L&E Global at joseph.granato@leglobal.org.

Singapore: COVID-19 – Post-circuit breaker measures required at the workplace

May 22 2020

Singapore’s circuit breaker, which came into effect on 7 April 2020, is expected to ease gradually after 1 June 2020. In light of this, Singapore’s tripartite partners (the Ministry of Manpower, the National Trades Union Congress and the Singapore National Employers Federation) jointly issued on 9 May 2020 a set of Safe Management Measures that employers are required to implement upon resuming their operations.

A summary of the Safe Management Measures is set out below:

1. Implementing a system of Safe Management Measures

To provide a safe working environment and minimise risks of further COVID-19 outbreaks, employers must implement a system of Safe Management Measures in a sustainable manner for as long as necessary, including:

a. Implementing a detailed monitoring plan – to ensure compliance of Safe Management Measures and that non-compliance and risks are resolved in a timely manner.

b. Appointing Safe Management Officer(s) (SMO) – to assist in implementing, coordinating and monitoring the systems of Safe Management Measures and resolving non-compliance and risks in a timely manner. The SMO should also keep records of inspections, checks and corrective actions taken.

2. Reducing physical interaction and ensuring safe distancing

Where possible, employers must ensure that:

a. Employees work from home.

b. Meetings are conducted virtually and physical meetings are minimised.

c. Events and activities involving close and prolonged contract amongst participants (e.g. conferences, seminars, exhibitions and social gatherings at the workplace) are cancelled or deferred.

d. Special attention is given to vulnerable employees to enable them to work from home.

Where employees cannot work from home, employers must ensure that the following are implemented:

a. Staggered working and break hours to reduce possible congregation of employees in all common spaces (e.g. entrances, exits, lobbies, canteens and pantries).

Staggered working and break hours must be implemented over at least three one-hourly blocks, with not more than half of the employees reporting to work within each one-hour block (e.g. reporting times from 7.30am to 8.30am for group 1, 8.30am to 9.30am for group 2 and 9.30am to 10.30am for group 3, with corresponding staggered timings for lunch, other breaks and end of work).

Where possible, reporting and ending timings should not coincide with peak-hour travel.

If staggered working and break hours are not possible, employers must implement other measures to reduce congregation of employees at common spaces (e.g. arrange for different groups of employees to arrive/depart through different entrances/exits).

b. Implementing shift or split team arrangements.

There must not be any cross-deployment or interactions between employees in different shifts and teams at all times, including outside of work.

If cross-deployment cannot be avoided, additional safeguards must be taken (e.g. ensuring no direct contact with cross-deployed employee).

c. Minimising need for common touchpoints in the workplace. Where physical contact is needed, additional safeguard must be taken (e.g. frequent disinfection of common touchpoints).

Where physical interaction in the workplace is required, employers must ensure:

a. Clear physical spacing of at least one metre between persons at all times by demarcating safe physical distances via visual indicators or through physical means at workstations, meeting rooms and common spaces.

3. Supporting contact tracing requirements

a. Record proximity data on phones to help identify close contacts of COVID-19 patients and reduce transmission. Employers should encourage employees to download and activate the TraceTogether app.

b. Control access at workplace by limiting access to only essential employees and authorised visitors. The SafeEntry visitor management system must be used to record entry and exit of all employees and visitors.

Employees and visitors who are unwell must be refused entry to the workplace.

4. Requiring personal protective equipment (PPE) and observing good personal hygiene

a. Employers must ensure that everyone entering the workplace including employees and visitors wear a mask and other necessary protective equipment at all times. Employers must also ensure that there are sufficient masks for all employees at the workplace at all times.

b. Employers should encourage employees to observe good personal hygiene.

5. Ensuring cleanliness of workplace premises

a. Employers must step up cleaning of workplace premises by ensuring regular cleaning and disinfecting of common spaces and shared machinery and equipment before changing hands. Cleaning and disinfecting of spaces where physical meetings are held and meals are taken must be done after each meeting or seating.

b. Provision of cleaning (e.g. hand soaps and toilet papers) and disinfecting agents (e.g. hand sanitisers) must be available at all toilets and hand-wash stations and human traffic stoppage points within the workplace (e.g. entrances, reception, lift lobbies, etc.), respectively.

6. Implementing health checks and protocols to manage potential cases

a. Employers must conduct regular temperature screening and declarations for all employees and visitors.

Employees and visitors must declare: (i) their overseas travel history during the past 14 days; (ii) if they have been issued with a quarantine or isolation order, Stay-Home Notice, or medical certificate for respiratory symptoms; and (iii) if they have a close contact who is a confirmed case.

Declaration records must be kept for at least 28 days.

b. Employers must adhere to prevailing travel advisories.

c. Employers must ensure that employees do not clinic-hop and that they only visit one clinic for check-ups if unwell.

Employees who have visited a clinic must submit records to their medical certificates and diagnoses to employers, including if they were tested for COVID-19 and the test results.

d. Employers must have an evacuation plan to manage employees who are unwell or suspected cases. Employers must record such cases as part of Safe Management Measures.

e. Employers must have a follow-up plan in the event of a confirmed case.

Upon being notified of a confirmed case, employers must immediately vacate and cordon off the immediate section of the workplace premises where the confirmed case worked and carry out thorough cleaning and disinfecting of all areas exposed to the confirmed case, in accordance with the National Environment Agency’s guidelines.

A checklist of the Safe Management Measures can be found here. Employers must ensure that all measures are in place and communicated to employees prior to resuming work.

In addition to the above, employers in the manufacturing sector, with customer-facing operations or in the transportation sector must adopt certain sector-specific measures.

Clyde & Co Clasis attorneys are available to assist you with these and other workplace issues. For more information, visit clydeco.com/locations/office/singapore.

For more information please contact Joseph Granato, Communications Manager at L&E Global at joseph.granato@leglobal.org.