Employers in severe workplace discrimination cases may face fines under proposed law

Errant employers who are found to have carried out more severe discriminatory practices may be fined or face legal consequences under a proposed workplace fairness law.

The Workplace Fairness Bill, which was introduced in Parliament on Tuesday (Nov 12), will allow the Ministry of Manpower (MOM) to take a range of actions against the company and/or person responsible for their discriminatory practices if passed.

For example, job advertisements seeking preferential characteristics in candidates may be classed as lower severity. In such cases, MOM can give directions to employers to rectify the breaches and prevent future recurrence, said MOM in a press statement. 

In moderately severe cases such as when firms fail to rectify earlier identified breaches, the ministry may then impose financial penalties.

And in the most severe cases such as when it is found there was a clear intention to discriminate, MOM can take legal action against the errant employer by recommending the Courts to impose higher quantum financial penalties.

However, MOM stressed that it takes an educational approach to maintain workplace harmony and shift mindsets, rather than focusing on punishment.

This law builds on progress made since the Tripartite Guidelines on Fair Employment Practices was introduced in 2007, added the ministry. 

Smaller firms exempted from legislation 

Under the Bill which was tabled by Minister for Manpower Tan See Leng, employers are prohibited from discriminating against employees when hiring, making in-employment decisions such as performance appraisals and promotion, and dismissals.

The Bill sets out five areas of protected characteristics, namely:

1. Age
2. Nationality
3. Sex, marital status, pregnancy status, caregiving responsibilities
4. Race, religion and language
5. Disability and mental health conditions

However, employers will be allowed to make employment decisions based on a protected characteristic if there is a genuine occupational requirement fulfilling one of four circumstances: For the reasonable performance of the job, health and safety reasons, privacy reasons, or legal and regulatory reasons.

If challenged on the above, employers will need to explain how the protected characteristic is linked to the job.

Small firms with less than 25 employees will be exempt from the legislation pending a review in five years. Religious organisations will be permitted to make employment decisions based on religion.

Employees who encounter other forms of workplace discrimination can still approach the Tripartite Alliance for Fair & Progressive Employment Practices for help, said MOM.

Strengthening processes for resolving disputes

The Bill will also require firms to develop and establish internal grievance handling processes to resolve workplace discrimination or harassment disputes and protect the identity of the informant.

Workplaces are not allowed to retaliate against employees who report workplace discrimination or harassment.

The legislation will ensure that no person appearing as a witness is compelled to disclose the identity of employees who have come forward, and also protect those who come forward from liability.

The Workplace Fairness Bill is the first of two Bills that make up the Workplace Fairness Legislation. The second Bill introducing the procedural rights and processes for individuals to make private claims will be tabled in Parliament at a later date.

If both Bills are passed, they will come into effect in 2026 or 2027. 

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lim.kewei@asiaone.com