New Bill sets out formal process for workers to file workplace discrimination claims

SINGAPORE – Workers who face discrimination will soon have a clear process to seek redress under a new Bill introduced in Parliament on Oct 14.

The Workplace Fairness (Dispute Resolution) Bill is the second of two Bills that together form upcoming workplace fairness laws, bringing Singapore one step closer to rolling out the regime come 2027.

Under the latest Bill, a complainant should first raise the matter internally through the firm’s grievance handling process. If the matter is not resolved within the firm and the person wishes to make a claim against the firm, parties should attempt mediation first before proceeding to adjudication.

Adjudication is the last resort for workplace discrimination disputes, similar to the existing process for disputes over salaries and alleged unfair dismissal.

Cases involving claims worth up to $250,000 will be heard by Employment Claims Tribunals (ECT), while those worth over $250,000 will be heard by the High Court.

This departs sharply from the ECT’s claims threshold for both unfair dismissal and salary, which is either $20,000 or $30,000, depending on whether a union is representing the worker.

On Oct 14, National Trades Union Congress assistant secretary-general Patrick Tay said the $250,000 limit enables more workers, including professionals, managers and executives, to access the ECT.

Responding to queries, the Ministry of Manpower (MOM) said: “The expansion (of claim threshold) does not imply that we expect workplace discrimination claims to reach amounts significantly higher than other types of employment claims. Rather, it is to ensure that the vast majority of (Workplace Fairness Act) claims are heard by the ECT, given the sensitive and socially divisive nature of discrimination issues.”

All court proceedings, both in the ECT and High Court, will be private.

“Private forums offer a safe environment for parties to openly share their honest views and focus on the ongoing case, without worrying that third parties may misrepresent or sensationalise issues in the public domain,” MOM said.

However, judgments can still be published without gag orders, and errant parties can be charged in open court for any employment offences.

MOM said the Government, employers and labour movement all agreed that preserving workplace harmony must remain a priority when designing the dispute resolution process.

The caps for salary and wrongful dismissal claims have operated well to cover most claims and involve clear calculations, such as of owed salaries or notice pay, the ministry added.

“Overall, the different claim limits reflect the distinct nature of these dispute types.”

To ensure most workplace discrimination claims come under the ECT, the higher claims limit, which is pegged to that for civil claims heard at the District Courts, was set.

“The ECT offers an expeditious, just and easy-to-understand process that ensures access to redress without legal representation, while avoiding lengthy court proceedings.”

MOM added: “Few claims are expected to reach the upper limit of the ECT. Claimants will need to substantiate their claim amounts as per any civil claim today.”

Key features of the Bill, including ensuring a judge-led process aimed at ensuring swift, affordable resolution, remain largely unchanged from proposals laid out in a public consultation on Sept 19.

In the ECT, lawyers are not allowed to represent parties. Judges guide parties on the issues in contention, the relevant evidence to show, and how to move the case forward.

Both employees and employers can seek union representation at the ECT, subject to eligibility conditions.

The Bill follows the Workplace Fairness Act, which covers individual characteristics protected against discrimination and employers’ obligations and was passed in Parliament on Jan 8.

Under the second Bill, a time limit will be set for workers to request mediation, starting from when an “adverse employment decision” was first made known to them.

For claims in the pre-employment stage, such as during the hiring process, workers have one month to file for mediation. They need not wait for a firm’s internal grievance handling process to conclude before doing so.

For claims arising during employment, the time limit is six months. For claims relating to the end of employment, the limit is one month from the last day of employment.

However, exceptions can be given in extenuating circumstances, such as pregnancy or injury.

A panellist at a media briefing on the Bill said claimants regarding unfair dismissal and salary arrears are largely aware of the time limit for those claims, and noted that it would not be feasible for employers to dredge up information from several years back.

Mr Ng Zhao Yang, employment lawyer and principal at Baker McKenzie Wong & Leow, said the mooted increase in the claim limit for workplace fairness disputes is a significant jump from the existing maximum for wrongful dismissal cases.

“That said, it will be helpful for both employers and employees to understand how the claim amount will be calculated to better assess their positions and navigate the process effectively.

“It will be very interesting to read about how the tripartite partners will educate workers and employers on the appropriate compensation amounts for different contexts to prevent claim inflation.”

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