Observe any building in the CBD for a day, and you’ll see talented professionals of every nation and colour. This vibrancy is possible because Singapore’s government has balanced competitiveness and locals’ interests through the Fair Consideration Framework (FCF). But this balancing act has certain effects on the Employment Pass (EP) application process. We’ll dig deeper for you in this blog post.
The Singaporean government runs numerous initiatives and organisations designed to encourage both diversity and fairness in its workforce. One of these initiatives is the FCF, or Fair Consideration Framework—a set of guidelines that firms must follow when filling professional, managerial, executive, and technical (PMET) roles.
The FCF was last revised in 2018, but current Minister for Manpower Josephine Teo plans to update it once again in 2020.
The FCF plays a vital role in the employment pass process. If you’re planning to make international hires, you should get acquainted with the FCF’s rules and clauses. Additionally, you should be familiar with the government agencies in charge of enforcing it.
The FCF is managed by the Ministry of Manpower (MOM) and enforced by the Tripartite Alliance Limited (TAL).
MOM is in charge of all things labour-related in Singapore. This includes creating new legislation for employment practices, managing work passes, outlining workplace safety and health standards, and more.
TAL is a collaboration between MOM, National Trades Union Congress (NTUC), and Singapore National Employers Federation (SNEF). It serves as a mediator and advocate for fair, non-discriminatory work practices.
Prior to the FCF’s implementation, many Singaporeans felt that companies were giving good-paying PMET jobs to foreigners without first considering locals for these positions. In response to these fears and concerns, MOM announced the FCF in 2013 and implemented it the following year.
The introduction of the FCF resulted in two major changes: the creation of the Jobs Bank, and new jobs listing requirements that affected EP applications.
The Jobs Bank is a free public platform and jobs-listing site for local employees and employers. It was created after the FCF came into force.
Based on the candidates’ current skills and competencies, the portal matches locals to relevant jobs. It also highlights jobs that are eligible for Government support through WSG’s Adapt and Grow Initiative.
The Jobs Bank also features a Careers Toolkit section, which provides career insights and guidance in the form of written content.
The FCF made it mandatory for certain businesses to list PMET jobs on the Jobs Bank so that talented locals would have a chance to apply for these roles.
Starting in 2014, any position that paid up to $12,000 a month had to be listed on the Jobs Bank. All companies with more than 25 employees had to follow this rule.
If, after 14 days, companies couldn’t find a local to fill the position, they could advertise the job elsewhere and open it up to foreign applicants.
Former MOM Minister Lim Swee Say expanded the scope of the FCF in 2018 to cover more employees and jobs. In his February 2018 Committee of Supply debate speech, he increased the scope of the FCF’s listing requirements:
As of 2020, these are the current standards. Firms that do not fulfil the listing requirement will not be able to apply for an Employment Pass for a foreigner to fill the empty position.
You may be exempt from the FCF’s listing requirement if:
Keep in mind, though, that even if you are exempt, the MOM still recommends listing any open positions on Jobs Bank.
MOM proactively monitors indications of discriminatory hiring practices. Once flagged, potentially errant employers are placed on the FCF Watchlist for closer scrutiny. Employees and third parties may also report companies they suspect of discriminatory HR practices.
Here are some things that MOM will pay close attention to:
If your company is placed on the Watchlist:
Companies will have six months to come off the Watchlist. This can be done by showing the following to TAFEP, a TAL agency:
If the Watchlisted employer doesn’t improve within six months, they can expect their EP applications to be rejected automatically by MOM.
Since 2016, a combined total of 2,300 Employment Pass applications have been rejected or disqualified for being discriminatory. The sectors with the most FCF violations are:
In March 2019, Minister Josephine Teo shared that out of the 610 companies that were flagged at the beginning of 2019, 260 had improved their practices.
Now that you know about the FCF, you are now better equipped to make foreign hires. The FCF is here to stay, and staying in line with the FCF guidelines will ensure that your foreign hires go as smoothly as possible.
For more detailed advice on hiring foreign talent while navigating a constantly changing legal landscape, get in touch with our visa specialists.