Fair Consideration Framework

Key points to note under the FCF include:

Effective Date

The effective date for the FCF is 1 August 2014

 Key Features

1. All employers are encouraged to advertise job vacancies, and ensure that these jobs are open to Singaporeans
2. Employers making new Employment Pass (EP) applications must advertise the job vacancy on a new job portal to be administered by the Singapore Workforce Development Agency.  The job advertisement must
   • be open to Singaporeans;
   • comply with the tri-partite guidelines on fair employment practices; and
   • must run for a minimum of 14 days

Exemptions

Employers with less than 25 employees, or job positions with a monthly salary of SGD 12,000 or more are exempted from the advertising requirement described in paragraph 3.  However, restrictions outlined in paragraph 5 may be imposed if complaints about discriminatory practices are received by the MOM.

Possible Actions by the MOM

1. Firms which have a disproportionate number of EP holders, or who continue to adopt discriminatory practices may be put under additional scrutiny and be asked to furnish additional information such as:
   • organization charts outlining the nationality of various employees
   • the recruitment process
   • staff grievance handling procedures
   • framework for staff progression
   • plans to develop local staff and plans to reduce reliance on EP holders
2. The Ministry of Manpower may impose additional requirements on employers who fail to show sufficient progress.  Such requirements may include:
   • attestation that the employer will not displace any similarly employed Singaporean within 60 days before or after applying or renewing EPs
   • display a factsheet containing key information submitted to the MOM at the workplace
   • greater scrutiny and longer review of EP applications
   • curtailment of work pass privileges

Qualifying Salary for new EP Applications

The qualifying salary for new EP applications will be raised from SGD 3,000 to SGD 3,300 in January 2014.

Transitional Measures

To help employers manage the changes, the following transitional measures have been introduced:

1. All new EP applications are subject to the new qualifying salaries from 1 Jan 2014
2. For existing EP holders, the new requirements will be phased in over the next 2 to 3 years as follows:
   • existing EP holders whose pass expires before 1 Jan 2014 – receive a one-time renewal based on existing EP qualifying criteria
   • existing EP holders whose pass expires between 1 Jan and 30 Jun 2014 (both dates inclusive) – receive a one-time renewal for one year only, based on existing EP qualifying criteria
   • existing EP holders whose pass expires on or after 1 July 2014 – subject to new qualifying criteria
3. The transition measures outlined above apply only if there is no change in employer of the EP holder

Additional information can be found here.