New bill sets out three-step process to file workplace discrimination claims in Singapore

Key Concepts

• Workplace Fairness Act (WFA): A new legislative framework designed to address and resolve workplace discrimination claims.
• Discrimination: Unfair treatment based on factors such as age and nationality, as defined by the first part of the WFA.
• Grievance Process: The internal mechanism within a company for employees to raise and resolve workplace issues.
• Mediation: A facilitated negotiation process where a neutral third party helps disputing parties reach a mutually agreeable resolution.
• Adjudication: The formal legal process of resolving a dispute, typically through a tribunal or court, when other resolution methods fail.
• Employment Claims Tribunals (ECT): A specialized tribunal designed to hear employment-related claims, including those under the WFA, with simplified procedures.
• Frivolous Claims: Claims made without serious purpose or legal merit, often for harassment or delay.
• Counter Claim: A claim made by a defendant against a plaintiff in the same lawsuit.
• Tripartite Alliance for Dispute Management (TADM): An existing body that handles employment disputes, providing a benchmark for resolution times.

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Introduction to the Workplace Fairness Act (WFA)

A new bill is being introduced to establish a clear framework for individuals experiencing unfair treatment or discrimination at work to file claims against their employers. This legislation builds upon the first part of the Workplace Fairness Act (WFA), which already defines discrimination (e.g., based on age, nationality) and outlines employer compliance requirements. The primary objective of the new bill is to facilitate quick and amicable resolution of such disputes.

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The Three-Step Dispute Resolution Process

The latest bill introduces a structured, three-step process for workers to file claims under the WFA:

1. Internal Grievance Process:
   • Employees are first required to raise the issue internally through their company's established grievance process.
   • This initial step necessitates the submission of supporting evidence related to the alleged incident of discrimination.
2. Mandatory Mediation:
   • If the issue remains unresolved after the internal grievance process, both the employee and employer are mandated to attend mediation. This aims to find a mutually agreeable solution with the help of a neutral third party.
3. Adjudication:
   • Should mediation reach an impasse, the claim will proceed to adjudication as a last resort. This formal resolution step can occur either at the Employment Claims Tribunals (ECT) or the High Court, depending on the claim amount.

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Specifics of Adjudication

The adjudication stage is bifurcated based on the monetary value of the claim:

• Employment Claims Tribunals (ECT):
  • Claims up to $250,000 will be heard under simplified procedures.
  • Legal representation is generally not permitted, though union representatives may be allowed to assist claimants.
  • The Manpower Ministry states that the higher claim limit for workplace fairness cases (compared to salary-related or wrongful dismissal claims) is intended to ensure that the majority of cases can be heard by the ECT, rather than an expectation of claims reaching such large sums.
• High Court:
  • Claims exceeding $250,000 will be escalated to the High Court, where formal court rules and procedures apply.

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Complexity and Preparation

While the Tripartite Alliance for Dispute Management (TADM) currently resolves salary and wrongful dismissal claims in approximately 8 weeks, discrimination cases are anticipated to be more complex. Mr. E emphasized the need for comprehensive understanding: "It's first of its kind and therefore requires practitioners, HR leaders, employers including unions and union leaders to have the adequate knowledge on not just the framework of the workplace fairness act but also now the entire dispute resolution process. So being familiarized with the mechanisms and where to go and what to do and how to gather evidence." This highlights the importance of all stakeholders being well-versed in the new framework and dispute resolution mechanisms.

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Safeguards for Employers

The bill incorporates systematic safeguards designed to protect all parties, including employers. A key outcome is to ensure employers can defend their interests. As Mr. E stated, "One key outcome we want to see is that employers also have a way of defending their own interest. So when faced with frivolous claims actually employers can make a counter claim or to ask for the claim by the employee to be struck out. So these are very important features to achieve the right balance between employees and the employers interest." This provision allows employers to file counter claims or request the dismissal of claims deemed frivolous, aiming to strike a fair balance between employee and employer interests.

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Implementation Timeline

If the second bill successfully passes, both parts of the Workplace Fairness Act are projected to take effect in 2027.

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Conclusion/Main Takeaways

The new bill for the Workplace Fairness Act establishes a structured, multi-stage process for addressing workplace discrimination, prioritizing early resolution through internal grievance procedures and mandatory mediation before resorting to adjudication. It introduces specific claim limits and procedures for the Employment Claims Tribunals and High Court, with a notable higher limit for discrimination cases to maximize ECT coverage. The legislation also includes crucial safeguards for employers, allowing them to defend against frivolous claims, aiming for a balanced and fair resolution environment. The successful implementation in 2027 will necessitate significant preparation and knowledge acquisition by all workplace stakeholders.