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Commentary – Fair Consideration Framework

The Fair Consideration Framework (FCF) was implemented as a direct response to the growing citizenry dissatisfaction over the steady increase of foreign hires clinching what are deemed ‘desirable jobs’

Fair Consideration Framework

The Fair Consideration Framework (FCF) was implemented as a direct response to the growing citizenry dissatisfaction over the steady increase of foreign hires clinching what are deemed ‘desirable jobs’ and – as one can appreciate – is a critical part of Singapore’s overall political backdrop.

When it was first introduced in 2014, it aimed to tackle the issue of companies with a dwindling Singaporean core (especially compared to industry peers) – these firms were approached by the authorities in a bid to 1) gain insight to their hiring practices and principles and 2) understand what employers deem to be the general skills gap within the local workforce.

As part of its audit, the MoM found lapses in these companies’ hiring practices; it is discovered that while firms may have indeed ticked the boxes when it came to advertising the roles (as per the MoM’s requirements), the recruitment exercise was far from organic. We will outline in this article three striking examples of breaches highlighted by the MoM, which we were privileged enough to receive from our numerous discussions with the authorities.

Pre-selected candidates.  It is discovered that – often – a foreign candidate had already been selected for a role before the vacancy was even posted in the MyCareersFuture (MCF) portal. The unfortunate implication is that while companies are adhering to the advertising requirements, there was no genuine intent to open the job to the local market. The MoM takes a strict position on firms who view the FCF merely as a precursor – a rite of passage, so to speak – to submitting an Employment Pass (EP) application.

In doing so, companies are seen by the authorities as not only not adhering to the spirit of the FCF, they are also wasting the time of local candidates who have taken the time to express interest in the role. This raises questions about not just a company’s attitude towards the hiring of locals, but its general employment practices as well.

Objectionable hiring practices. In their review of the affected companies’ response to their line of query, the MoM observed an alarming trend of unsavoury hiring practices. This includes lack of record keeping, which may pave the way for disputes between employer and employee in future. Similarly, the MoM found that some companies go into a job advertisement without mutual understanding amongst all stakeholders as to what they are seeking in a successful candidate. This results in two candidates being subject to very differing recruitment experience, despite sharing similar background and applying for the same role.

In the interest of fairness, companies are expected to adopt a structured hiring process – this not only ensures access to the most qualified candidates, it also safeguards the company from any potential claims of unfair hiring practices.

False Declarations. While there is no denying the administrative burden on companies, particularly for roles where the response may be overwhelming, it is important provide precise figures when declaring the number of respondees and interviewees considered for the role. The MoM notes that companies may have – and this could very well be due to a clerical oversight-  provided wrong information which paints an inaccurate picture of the recruitment exercise. This brings us back to the importance of proper record-keeping, failure of which may have inadvertently give off the impression of making a false declaration.

With the unemployment rate rising to a record high this year due to the ongoing pandemic, we can only anticipate the MoM enforcing the FCF more vigorously in the interest of ensuring job security for its locals. In that spirit, we have observed the FCF expanded to expanded to include discriminatory hiring based on age, gender, race and mental health. Therefore – beyond a sound immigration program – it may be prudent for companies to revisit their hiring and general employment practices to ensure they align with the government’s expectations. This is especially critical as failure to comply may lead to a revocation of work pass privileges for up to 2 years.

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