SINGAPORE Trends and Developments Contributed by: Ian Lim, Nicholas Ngo, Angela Chai and Stasia Ong, TSMP Law Corporation
Looking Forward Singapore stands at an inflection point in employment law. The Workplace Fairness Act is a significant step in Singapore’s long-standing commitment to creating a fairer workplace. Enhanced parental leave provisions and the push towards adopting flexible work prac - tices also signal a broader awareness of the need to address ongoing socio-economic challenges. These legislative changes, coupled with judicial develop - ments in areas such as good faith obligations and restrictive covenants, are fundamentally reshaping the employment landscape. These developments require businesses to strike a new equilibrium. Forward-thinking organisations will view new compliance requirements not just as incon - venient additional obligations, but as fresh opportuni - ties to forge an enhanced workplace culture, attracting top talent while mitigating litigation risks. As Singapore continues to position itself as a premier international business hub, employment practices that reflect both legal compliance and progressive values will become increasingly central to competitive advantage.
refuse work pass applications where employers fail to comply with the Fair Consideration Framework. This transforms the Fair Consideration Framework from a guideline into an enforceable requirement, compel - ling employers to genuinely and fairly consider local candidates before turning to foreign talent. The new Workplace Fairness Act 2025 also expressly allows employers to favour Singapore citizens and permanent residents over foreign employees on work passes when it comes to making employment deci - sions. These legislative changes send a clear signal to com - panies operating in Singapore that they must dem - onstrate meaningful efforts to hire and develop local talent or face tangible and potentially serious conse - quences in their ability to access foreign workers. A further development worth mentioning is a state - ment released by the Ministry of Manpower in 2024, where it took a firm stance against the hitherto com - mon practice of foreign companies using Employers of Record to apply for work passes. This allowed foreign companies to hire foreign work pass holders in Singapore without having a direct presence in the jurisdiction (mainly to avoid creating a taxable perma - nent establishment). The Ministry of Manpower’s statement did not change the law, but made it clear that such practices are pro - hibited under Singapore law. Foreign companies that wish to hire employees in Singapore must either set up shop in Singapore, or hire locally.
540 CHAMBERS.COM
Powered by FlippingBook