Understanding the Fair Consideration Framework (FCF)

The Fair Consideration Framework (FCF) is a set of guidelines established by MOM to promote fair and merit-based hiring practices. The framework ensures that employers:

• Consider Singaporeans fairly for job openings.
• Hire based on skills, experience, and merit, rather than discriminatory factors.
• Follow transparent and non-biased recruitment practices.

Principles of Fair Employment Practices

Five key principles that all employers in Singapore should adopt:

1. Merit-Based Recruitment – Employees should be hired based on their skills, experience, and ability to perform the job, without discrimination based on age, gender, nationality, race, religion, marital status, or disability.
2. Fair and Respectful Treatment – Employees must be treated fairly and with respect in the workplace, supported by progressive HR management systems.
3. Equal Opportunities for Development – Employees should be provided with training and development opportunities based on their strengths and needs to help them achieve their full potential.
4. Fair and Transparent Rewards – Salaries, bonuses, and other incentives should be fairly distributed based on performance, contribution, and experience.
5. Compliance with Labour Laws – Employers must abide by labour laws and adopt the Tripartite Guidelines on Fair Employment Practices to ensure fairness in all aspects of employment.

Application of FCF to Employment Practices

The FCF and fair employment principles extend beyond hiring and apply to various employment practices, including:

Recruitment

• Employers must establish merit-based hiring without bias against any group.
• Structured interviews and evaluation criteria should focus on skills and experience rather than personal attributes.
• Transparency in recruitment by documenting reasons for hiring decisions.

Job Advertising

Core requirements of the FCF is the mandatory advertising of job vacancies on MyCareersFuture. Employers must:

• Advertise job openings for at least 14 calendar days.
• Ensure job postings are open to all Singaporeans.
• Comply with the Tripartite Guidelines on Fair Employment Practices (TAFEP).
• Avoid restrictive job descriptions that may exclude certain groups unfairly.

However, employers are not required to advertise positions in the following cases:

• Roles with a fixed monthly salary of SGD 20,000 and above.
• Short-term temporary roles (not exceeding one month).
• Intra-corporate transferees, as defined by the World Trade Organization’s General Agreement on Trade in Services (GATS).

Remuneration

• Employers must offer fair and competitive compensation based on industry benchmarks.
• Salaries, bonuses, and benefits should reflect performance, contribution, and experience rather than factors such as nationality or background.

Performance Appraisal

• Employee assessments should be objective and based on clearly defined metrics.
• Performance reviews should be free from favoritism and personal bias.
• Opportunities for career progression should be provided based on merit and capability.

Disciplinary Actions and Dismissals

• Disciplinary actions should follow a structured and transparent process.
• Employees must be given an opportunity to explain and improve before termination is considered.
• Dismissals should be based on justifiable business reasons and not discriminatory factors.

Grievance Handling

• Companies should have a structured grievance-handling mechanism.
• Employees should have a safe and confidential channel to raise concerns without fear of retaliation.
• Employers must investigate complaints fairly and take appropriate action.

Possible Consequences of Non-Compliance

Increased Scrutiny

Employers with disproportionately low numbers of Singaporean PMETs (Professionals, Managers, Executives, and Technicians) may face:

• Additional audits and scrutiny from MOM.
• Inclusion in the Fair Consideration Framework Watchlist.

Penalties

Non-compliance can lead to:

• Debarment from hiring foreign workers.
• Other administrative actions, such as warnings or restrictions on work pass applications.

Conclusion

By embracing fair hiring practices and adhering to the Fair Consideration Framework, businesses can comply with legal obligations, foster an inclusive workplace, and strengthen their reputation as employers of choice in Singapore.

Any queries regarding HR in Singapore or HR Services, feel free to contact Wei Xiang at [email protected]