Navigating Singapore's Fair Consideration Framework: A Guide for Employers

8 mins
October 24, 2024

As an employer in Singapore, navigating the Fair Consideration Framework (FCF) is crucial for maintaining compliant and equitable hiring practices. Implemented by the Ministry of Manpower, the FCF aims to foster a balanced approach to talent acquisition, encouraging businesses to prioritise local candidates whilst building a diverse workforce. 

This guide will provide you with essential insights into the FCF's key aspects, helping you understand its impact on your hiring processes and how to ensure compliance. By the end, you'll be well-equipped to make informed decisions that align with both your business needs and Singapore's fair employment guidelines.

What Is the Fair Consideration Framework?

The Fair Consideration Framework (FCF) is a set of guidelines introduced by the Singapore government in 2014 to promote diversity and fairness in the country's workforce. As an employer in Singapore, you must understand and comply with the FCF to ensure fair hiring practices and maintain a diverse workforce.

Key Components of the FCF

  1. Job Advertisement Requirement: The FCF mandates that employers advertise job openings on MyCareersFuture, the national jobs portal, for at least 28 days before considering foreign candidates for Professional, Managerial, Executive, and Technical (PMET) roles. This requirement also applies to S Pass applications.
  2. Scrutiny of Hiring Practices: The Ministry of Manpower (MOM) and Tripartite Alliance Limited (TAL) monitor companies for potential discriminatory hiring practices. Companies found to be non-compliant may be placed on the FCF Watchlist for closer scrutiny.
  3. Consequences of Non-Compliance: Failure to adhere to FCF guidelines can result in penalties such as longer processing times for Employment Pass (EP) applications, shorter EP durations, and potential automatic rejection of EP applications if hiring practices do not improve within six months.

Importance of FCF Compliance

Adhering to the FCF is crucial for businesses operating in Singapore. Compliance not only helps you stay on the right side of the law but also enhances your company's reputation. 

Job seekers today value employers who prioritise diversity, inclusion, and equal opportunity. By following FCF guidelines, you set an internal standard for fair hiring practices, fostering a culture that promotes equality and accepts individual differences.

Understanding Fair Consideration in Singapore's Job Market

The Fair Consideration Framework (FCF) is a cornerstone of Singapore's employment landscape, designed to promote fair and balanced consideration for Singaporeans in the job market. As an employer, you must understand its key principles to ensure compliance and foster an inclusive workplace.

Core Principles of the FCF

  1. Merit-based recruitment: You should hire based on merit, without discrimination.
  2. Equal opportunity: Provide fair chances for all qualified candidates.
  3. Transparent job advertising: Advertise job openings on MyCareersFuture for at least 28 days before applying for an Employment Pass or S Pass.
  4. Fair consideration: Evaluate Singaporean applicants objectively before hiring foreign workers.

Compliance and Consequences

Adherence to the FCF is crucial. Non-compliance can result in penalties, including:

  • Work pass privileges suspension
  • Fines
  • Reputational damage

To avoid these, review your hiring practices regularly and ensure they align with FCF guidelines. Remember, the framework aims to create a level playing field, benefiting both local talent and businesses seeking diverse, skilled workforces.

How Does the Fair Consideration Framework Affect Hiring Practices?

The Fair Consideration Framework (FCF) significantly impacts hiring practices in Singapore by promoting fairness and local workforce development. Employers must advertise job openings on MyCareersFuture for at least 28 days before considering foreign candidates, ensuring Singaporeans have ample opportunity to apply. This requirement applies to positions with monthly salaries below S$20,000, with exceptions for short-term roles and internal transfers.

Companies found violating FCF guidelines may face penalties, including fines and restrictions on work pass privileges. The Ministry of Manpower (MOM) closely scrutinises employers with a disproportionately low concentration of Singaporeans at the professional, managerial, executive, and technical (PMET) level.

To comply with FCF:

  1. Ensure job advertisements are non-discriminatory
  2. Clearly state salary ranges
  3. Consider all applicants fairly, regardless of nationality

The FCF encourages employers to develop a strong Singaporean core whilst maintaining a diverse workforce. This balanced approach aims to enhance Singapore's global competitiveness whilst providing growth opportunities for both local and foreign talent.

What Are the Key Requirements for Employers Under the Fair Consideration Framework?

As an employer in Singapore, you must adhere to the Fair Consideration Framework (FCF) to ensure fair hiring practices. The primary requirement is to advertise job openings on the Jobs Bank for at least 14 days before applying for an Employment Pass (EP) to hire a foreign worker. This process guarantees that Singaporeans have a fair opportunity to apply and be considered for the position.

You are obligated to consider Singaporean candidates fairly and objectively, providing valid reasons if you choose to hire a foreign worker instead. Compliance with the FCF is not just a best practice; it's a legal requirement. Non-compliance can result in penalties, fines, and damage to your company's reputation.

Remember, the FCF aims to promote diversity in the workforce, which can bring numerous benefits to your organisation. These include increased innovation, improved problem-solving skills, and a better understanding of diverse customer needs. By adhering to the FCF, you'll also have access to a wider talent pool, helping you make informed hiring decisions that benefit both your company and the local workforce.

How Is Compliance with the Fair Consideration Framework Monitored and Enforced?

The Ministry of Manpower (MOM) and Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) closely monitor compliance with the Fair Consideration Framework (FCF). Employers with disproportionately low concentrations of Singaporeans at the PMET level or those facing repeated complaints may be identified for closer scrutiny.

These companies might be required to provide detailed information, including:

  1. Organisation charts with nationality data
  2. Recruitment processes
  3. Staff grievance procedures
  4. Career progression frameworks

Non-compliant employers face administrative actions, such as:

  • Placement on the FCF Watchlist
  • Closer scrutiny of work pass applications
  • Suspension of work pass privileges for 12-24 months

It's crucial to note that false declarations regarding fair consideration of candidates may result in prosecution, fines, and/or imprisonment.

TAFEP also provides guidance to employers and employees on fair employment practices. Employees facing workplace discrimination can seek assistance from TAFEP or file wrongful dismissal claims with the Tripartite Alliance for Dispute Management (TADM).

Compliance Measures for Employers

To ensure adherence to the Fair Consideration Framework (FCF), employers must implement robust compliance measures. According to the Tripartite Guidelines on Fair Employment Practices (TGFEP), you should recruit and select employees based on merit, regardless of age, race, gender, religion, marital status, family responsibilities, or disability.

Key Compliance Steps

  1. Job Advertisements: Ensure all job postings are non-discriminatory and directly related to job requirements.
  2. Fair Hiring Process: Implement a transparent and unbiased recruitment process, considering local talent fairly before hiring foreign workers.
  3. Grievance Handling: Establish a fair grievance handling process to address any discrimination concerns promptly.
  4. Performance Management: Develop an objective performance management system that rewards employees based on merit.
  5. Training and Awareness: Provide regular training to staff on fair employment practices and the importance of compliance.

Consequences of Non-Compliance

Failure to adhere to the FCF and TGFEP can result in serious repercussions. The Ministry of Manpower (MOM) may scrutinise non-compliant employers and potentially curtail their work pass privileges, including debarment from making and renewing work pass applications.

To stay compliant, regularly review your hiring practices and consider attending Employment Act workshops to stay abreast of the latest regulations. Remember, compliance protects your business and enhances your reputation as a fair and inclusive employer.

Penalties for Non-Compliance with the FCF

Non-compliance with the Fair Consideration Framework (FCF) can result in severe consequences for employers in Singapore. The government has increased penalties to deter discriminatory hiring practices and ensure fair consideration of local talent.

Work Pass Debarment

Employers found breaching the Tripartite Guidelines for Fair Employment Practices face a minimum work pass debarment period of 12 months, extendable up to 24 months for serious offenders. This debarment now includes new applications and renewals of existing foreign workers' passes.

Legal Consequences

Companies making false declarations about fair candidate consideration may face prosecution. Convicted employers and key personnel could be subject to:

  1. Imprisonment for up to 2 years
  2. Fines up to S$20,000
  3. Or both penalties simultaneously

Reputational Damage

Beyond legal ramifications, non-compliance can damage a company's reputation and brand image, potentially affecting its ability to attract talent and business opportunities in the future.

To avoid these penalties, employers must ensure fair hiring practices, maintain accurate recruitment records, and treat the FCF job advertisement requirement as more than a mere formality.

Balancing Local Talent Hiring and Workforce Diversity

Navigating Singapore's diverse talent landscape requires a delicate balance between local hiring and fostering a multicultural workforce. According to a survey by foundit, 52% of Singaporean organisations show responsiveness to diversity issues, indicating progress in this area. However, challenges remain, as 48% of respondents claim their organisations lack diversity training programmes.

To strike the right balance, consider these strategies:

1. Align recruitment with local talent: Tailor your hiring strategies to match the qualifications and skills prevalent in Singapore's highly educated workforce, particularly in high-demand sectors like finance, technology, and healthcare.

2. Embrace cultural fit: In Singapore's multicultural society, understanding cultural nuances is crucial. Enablegroup Asia suggests that companies should embrace diversity to ensure new hires integrate well into existing teams.

3. Implement diversity initiatives: Conduct interviews in diversity-friendly spaces, invite applications from diverse communities, and provide anti-bias training to create a more inclusive workplace.

4. Leverage technology: Utilise Applicant Tracking Systems and data-driven recruitment methods to streamline the hiring process and enhance the candidate experience while maintaining fairness.

5. Build a strong employer brand: Clearly communicate your company's culture, values, and employee value proposition to attract a diverse range of talent and differentiate your organisation in the competitive job market.

By implementing these strategies, you can create a workforce that balances local talent with diversity, fostering innovation and growth in your organisation.

Conclusion

The Fair Consideration Framework plays a vital role in fostering fair hiring practices in Singapore, even for non-executive roles often listed on platforms like FastJobs. By understanding and adhering to FCF guidelines, employers can contribute to a more inclusive job market while maintaining workforce diversity. Compliance isn't just about avoiding penalties; it's about creating equal opportunities for local talent at all job levels.

The principles of fair consideration—such as non-discriminatory job advertisements, merit-based recruitment, and providing equal opportunities—are crucial for building a robust and diverse workforce. These practices benefit both your organisation and Singapore's economy by ensuring that all job seekers, including those looking for non-executive roles, have fair access to employment opportunities.

Ready to implement fair hiring practices? Find the right talent FAST with FastJobs today.

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