legal briefing
New labor rules to favor local applicants Local job seekers are privileged to be evaluated for vacancies before everyone else.
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ingaporean jobseekers will soon be considered for job vacancies before non-local applicants, according to a recent announcement by Singapore’s Ministry of Manpower (MOM). The MOM has introduced a new Fair Consideration Framework (FCF), that will take effect next year and require firms to consider Singaporean applicants before Employment Pass (EP) holders. Not only must firms consider Singaporean applicants, they must show that they considered Singaporean applicants first, ensuring firms review their labor policies and procedures prior to implementation of the rules on August 1, 2014.
However Kala Anandarajah, from Rajah and Tann stresses:“Young graduates from good educational institutions can qualify if they earn $3,300, whereas older applicants will be required to have higher qualifying salaries, which will be linked to their work experience and the quality they are expected to bring in.” Kelvin Poa
“Young graduates from good educational institutions can qualify if they earn $3,300, whereas older applicants will be required to have higher qualifying salaries.”
What are some practical requirements post-implementation? Once the new labor rules take effect, firms must advertise all job vacancies on a new “jobs bank”, administered by the Singapore Workforce Development Agency, at least 14 days before making the EP application. “The position must be open to Singaporeans, comply with the Tripartite Guidelines on Fair Employment Practices and run for at least 14 calendar days,” says Michelle Foo, from Allen and Gledhill. Information in the advertisements should also include the job title, closing date for application, requisite skills, qualifications and experience, and salary range. The advertisements will be free of charge, and is scheduled for launch mid-2014. Foo also notes that firms can still advertise job postings through other platforms or websites, provided all employers consider Singaporeans fairly for jobs, based on merit. However, there are some firms that will not need to worry about the impending FCF rules, according to Cheung. Those firms with less than 25 employees, and those with job positions that pay more than a fixed monthly salary of $12,000, do not fall within the guidelines. “Interestingly, there is no mechanism for unsuccessful Singaporean applicants to lodge a complaint with MOM, however, feedback can be given through its website,” Cheung adds.
external recruitment agencies are prepared,” says Cheung. Kelvin Poa, from Baker & McKenzie, advises that firms most likely to be affected are those that hire a number of EP holders already, and are still looking to hire non-Singaporean applicants in the future. Firms who are already receiving discrimination complaints from applicants, are most likely already subject to the new labor rules, Poa says. Those who do not advertise in the national job bank will have the foreigners’ Employment Pass (EP) applications rejected. As part of the new framework, the MOM has imposed an increased qualifying salary requirement, also due to commence on 1 January 2014. In order to keep in line with rising salary rates in Singapore, this requirement ensures new EP applications meet the $3,300 monthly salary, an increase from the current $3,000.
What are the concerns going forward? Despite this, firms not required to follow the new FCF rules may still have additional requirements placed upon them, reporting certain to MOM. Firms that have a disproportionately low concentration of Singaporeans holding professional jobs will have their hiring practices come under greater scrutiny by the ministry. Poa highlights: “This would include firms that have a relatively low concentration of Singaporeans at the professional, managerial and executive level compared to others in their industry, and firms which have received repeated complaints of nationality-based or other discriminatory human resource practices.” The MOM will not, however, name these firms. “It is important for businesses to review their employment policies and processes to ensure that they will be in full compliance with the FCF rules,” Poa stressed.
Where to for existing EP holders? For existing EP holders who hold a pass that expires before 30 June 2014, a one-time renewal with their employer based on the existing criteria will apply. However passes which expire between 1 January and 30 June 2014 (inclusive), will be limited to a renewal of up to one year. Passes that expire after 30 June 2014 will need to meet the new criteria. Christopher Cheung, from Herbert Smith Freehills, says there will be action items placed upon employers with the introduction of these new rules: “Employers will need to be aware of the changes to EP applications and renewals, and ensure their internal human resources teams and
34 SINGAPORE BUSINESS REVIEW | JANUARY 2014
Kala Anandarajah
Michelle Foo