Ensuring fair opportunities for local jobseekers

A wealth management employer in Singapore came under the scrutiny of the Ministry of Manpower (MOM), due to an exceptionally high proportion of foreign PMETs compared to its industry peers. This was an indicator of possibly discriminatory hiring practices. The employer was also suspected to have unfairly favoured job applicants who were foreigners.

The employer was placed on the Fair Consideration Framework (FCF) Watchlist by MOM.

The Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) engaged the employer to review its employment practices. TAFEP warned the employer that if it did not practise fair consideration, its work pass privileges may be curtailed by MOM.

As a result of being placed on the FCF Watchlist, the employer's Employment Pass (EP) applications were subject to additional scrutiny by MOM. This affected the employer's ability to attract good candidates. The employer also realised that its business model was unsustainable and that continuing in its ways would only serve to limit business growth in the long run.

Instead of merely focusing on expatriate clients, the employer realised the value of expanding its business to include the local market and high net worth Singaporeans.

Consequently, the employer worked towards its renewed objectives and expanded its recruitment searches. It also engaged a public relations agency to raise its profile locally, hoping to attract local talent to join the employer.

Through these efforts, the employer succeeded in hiring local wealth managers who were sent for training at its head office. In total, the employer hired about 20 more Singaporeans, thereby reducing its reliance on foreign professionals. Furthermore, Singaporean hires with higher potential were also identified for career development by pairing them with experienced managers for mentorship.

The employer also implemented a talent management programme, knowledge transfer plan to support a new business model, and developed an expanded workforce with a training programme to build up technical skills of employees. These improvements by the employer were in line with TAFEP's recommendations.

The employer was committed to hire fairly, change its business model and implement staff development plans. After more than a year of sustained efforts, the employer was able to exit the FCF Watchlist.

The employer remains steadfast in its commitment to develop the skills of its local wealth managers and grow its business. It also aims to join the Human Capital Partnership Programme - a community of exemplary employers with progressive employment practices and who are committed to develop their human capital.

TAFEP expects employers on the FCF Watchlist to work with TAFEP and demonstrate clear outcomes to improve their hiring practices, before making a recommendation to MOM to exit the employers. Employers which are recalcitrant or uncooperative will have their work pass privileges curtailed, such as not being able to apply for and renew EPs.

MOM and TAFEP do not tolerate any form of workplace discrimination and will trace responsibility down to the individuals involved in the hiring process. Recently, TAFEP gained "sharper teeth" to deal with discrimination cases. MOM has raised the penalties across the board for all forms of workplace discrimination.

TAFEP is always watching out for employers with discriminatory hiring practices. Employers that violate the Tripartite Guidelines on Fair Employment Practices will be barred from hiring new foreign workers or renewing existing ones for a minimum of 12 months, up to a maximum of 24 months. A 24-month debarment period means that employers cannot renew up to all of their work passes and will need to hire locals if they wish to continue operations. In addition, employers and key personnel who make false declarations on fair consideration will be prosecuted under the Employment of Foreign Manpower Act. If convicted, they face up to two years of imprisonment, a fine of up to $20,000, or both.

TAFEP helps employers build workplaces where employees are respected, valued and able to achieve their fullest potential, for the success of the organisation. Employers can approach TAFEP for tools, resource materials and assistance to implement fair and progressive practices at their workplaces. Employees or individuals who encounter workplace discrimination or harassment can seek assistance and advice from TAFEP.

Website: tafep.sg
Telephone: 6838-0969

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