CMS Expert Guide on discrimination in the workplace in Singapore

1. What are the main laws on discrimination in the workplace in your jurisdiction and what type of conduct does it cover?

Currently, discrimination in the workplace is dealt with under the Tripartite Alliance for Fair & Progressive Employment Practices (TAFEP) Guidelines. In August 2021, the Singapore government announced that these Guidelines will be enshrined into law, although a specific timeline was not specified. 

2. Which characteristics are protected by these laws (is sexual orientation a protected characteristic?), and what type of employment relationships are covered – employee, worker, platform worker?

The Guidelines protect a wide range of characteristics including age, race, gender, marital status, religion, nationality, and disability. Sexual orientation is not a characteristic expressly discussed under the Guidelines, and it remains to be seen if it will be included in the new workplace anti-discrimination law. 

The Guidelines do not set out any restrictions or limitations in terms of the type of employment relationships they apply to. 

3. What remedies are available to an individual if they are subject to discrimination in the workplace, and what level of compensation might be awarded?

Under the Guidelines, individuals who encounter employment discrimination can contact the TAFEP for advice and assistance. The TAFEP will then contact and work with the employer to improve employment practices, ensure that these practices are fair and responsible, and that the Tripartite Guidelines have been adopted. 

Where the employer is recalcitrant or unresponsive, or persistently fails to improve their employment practices, the TAFEP will refer the case to the Ministry of Manpower (MOM) for further investigations. If the complaint is substantiated and the employer has contravened the Guidelines, the employer will generally be given the opportunity to rectify its actions. The MOM will also inform employers that non-rectification and future occurrences of discrimination will result in administrative action, including curtailment of their work-pass privileges. The period of curtailment may vary, depending on the severity of the case.

Along with the Guidelines being written into law, a tribunal will be created to give the rules "more teeth" when dealing with workplace discrimination based on nationality, gender, race, age, religion and disability. No further details have been provided for the time being.

4. What steps such as policies, training etc (if any) are employers required to put in place to prevent discrimination in the workplace?

There are no mandatory policies or trainings that employers are required to put in place to prevent discrimination in the workplace. 

At present, having a D&I Policy is not a legal requirement. The MOM has created a Managing Workplace Diversity Toolkit that provides resources for organisations to assess how they are managing diversity, and to help them implement practices and policies to manage diversity and build an inclusive and harmonious workplace. 

6. Are there any risks in not having a local D&I policy? Any reputational risks and ESG consequences?

In Singapore, it is not common for companies to have D&I Policies in place. As of September 2021, a report by the Singapore National Employers Federation (SNEF) and the human capital firm Kincentric showed that 7 in 10 Singapore firms have not yet introduced D&I Policies. Furthermore, for companies without D&I Polices, the risks to their reputation and of ESG consequences remain insignificant, and it is still unclear how the new workplace anti-discrimination laws will change this. 

7. Are employers required to report on pay transparency or gender/ethnic/disability pay gaps?

At present, there is no requirement to report on pay transparency or gender/ethnic/disability pay gaps. The MOM's Manpower Research and Statistics Department conducts surveys to collect sample data and afterwards publishes its analyses and reports. 

8. Are there any data protection rules that affect the processing and retention of diversity data, and what do they say?

Yes. The requirements under the Personal Data Protection Act 2012 (PDPA) will apply to the processing and retention of diversity data. In particular, employers must obtain valid consent for the processing of this diversity data (including notifying employees of the purposes for such processing), unless an exception under the PDPA applies. In terms of retention, employers should cease to retain this diversity data or remove identifiers (i.e. the data must be anonymised) as soon as it is reasonable to assume that (a) the purpose for which such diversity data was collected is no longer being served by retention of the personal data; and (b) retention is no longer necessary for legal or business purposes.

On a related note, while the PDPA does not contain specific obligations relating to special or sensitive categories of personal data, organisations are required to adopt security arrangements that are reasonable and appropriate in the circumstances. As such, the more sensitive the nature of the personal data, the greater the level of security is expected compared to more general personal data. Therefore, depending on the scope of the diversity data, certain types of diversity data (e.g. sexual orientation) may be considered more sensitive and should be afforded greater protection. 

9. Are there any quotas at board level or below, and if so what do they relate to?

There are no quotas, although the Council for Board Diversity has set voluntary targets for women’s participation on the boards of Top 100 listed companies, statutory boards, and Top 100 Institutions of Public Character (IPCs). 

10. Are there any corporate governance rules that relate to D&I, and what do they say?

The Singapore Code of Corporate Governance emphasises a board composition, which includes “diversity of thought and background” – a mix of inherent diversity such as gender and age with appropriate balance and mix of skills, knowledge, experience and other acquired diversity. The Code is applicable to listed companies in Singapore on a comply-or-explain basis, where compliance with the Code is mandatory. Where the company’s practices vary from any provisions of the Code, it must explicitly state, in its annual report, the provision from which it has varied, explain the reason for variation, and explain how the practices it had adopted are consistent with the intent of the relevant principle.

Rule 710A(1) of the SGX Listing Rules requires listed companies to maintain a board diversity policy that addresses gender, skills and experience, and any other relevant aspects of diversity. Rule 710A(2) of the Listing Rules lays out certain requirements for a listed company in the description of its board diversity policy in its annual report, which includes: (a) targets to achieve board diversity; (b) the accompanying plans and timelines for achieving such targets; (c) the progress towards achieving board diversity targets; and (d) a description of how the combination of skills, talents, experience and diversity of its directors serve the needs and plans of the company.