Article
Future of Work in Singapore: Aligning Return-To-Office policies with Flexible Work Arrangements
11 December 2024 | Applicable law: Singapore | 12 minute read
Amarjit Kaur, head of employment law at Withers in Singapore, recently shared her views on the challenges of balancing return-to-office mandates with flexible work requests in an article published in The Straits Times. In this article below, Amarjit delves deeper into the key considerations for employers navigating these challenges, with practical insights and an excerpt from her interview with The Straits Times included at the end.
In recent weeks, prominent global and local companies including Amazon, Starbucks, and Grab have reversed their hybrid work policies adopted during the COVID-19 pandemic and mandated employees to return to the office full-time.
Some of these businesses have cautioned employees that non-compliance with return-to-office ("RTO") policies may result in an "accountability process", "up to, and including, separation", while others have alluded to disciplinary action against those who don't comply with RTOs. The phrase “up to, and including, separation” typically signifies the full spectrum of disciplinary measures a company might employ in response to non-compliance with its policies, ranging from milder actions like verbal or written warnings, to more severe actions such as suspension or demotion, culminating in termination of employment if the non-compliance is deemed egregious and/or persistent enough.
Such announcements were made in the run up to the Tripartite Guidelines on Flexible Work Arrangement Requests ("FWA Guidelines") taking effect in Singapore on 1 December 2024.
Reconciling RTO mandates and employees' desire for FWA
Post COVID-19 pandemic, certain companies have reversed their hybrid work policies and implemented a return to the office mandate, driven by the desire to promote collaboration and strengthen workplace culture. It is reported that 83% of CEOs expect a full return to the office in 3 years' time.
On the other hand, having experienced different ways of working, including remote working, during the pandemic, employees have expressed a strong desire for flexible work arrangements to continue. A Randstad survey revealed that 1 in 2 workers in Singapore will quit their jobs if asked to be in the office more often, particularly amongst the younger work force.
Given these conflicting interests, the FWA Guidelines have been introduced at a timely juncture.
Even with the FWA Guidelines coming into effect on 1 December 2024, it will not be mandatory for employers to offer or grant FWA to employees. Instead, the FWA Guidelines encourage employers to put in place processes to fairly consider formal requests by employees for flexible work arrangements. The FWA Guidelines are aimed at making it easier for employees to request FWA, but employers ultimately retain the prerogative to decide on work arrangements.
The overarching intent of the FWA Guidelines is to normalize FWA in order to retain caregivers, parents and those who are unable to work traditional 9-5 jobs in the workforce, and to encourage our latent skilled workers to return to the workforce.
What the FWA Guidelines entail
The FWA Guidelines do not constitute law and are not legally enforceable. Employers are nonetheless strongly encouraged to comply as they may be issued warnings or orders to attend corrective workshops by the Ministry of Manpower if found in breach.
The FWA Guidelines apply to all companies, regardless of the number of employees. They apply to formal FWA requests by employees who have completed their probation. Employers may nonetheless allow employees on probation to make formal FWA requests on a discretionary or case-by-case basis.
The FWA Guidelines encourage employers to fairly process formal FWA requests submitted by employees. These formal FWA requests generally relate to long-term arrangements that require planning to ensure business continuity, rather than ad-hoc temporary arrangements or extenuating circumstances for a day. Formal FWA requests should satisfy the following requirements: date of request, reason for request, requested start/end date, requested arrangement including frequency and duration (a suggested template is set out at Annex A of the FWA Guidelines).
It is mandatory for employers to convey the outcome in writing to the employee within two months of receiving the request (a suggested template is set out at Annex B of the FWA Guidelines). Employers are also strongly encouraged to discuss alternative arrangements with the employees if the request is rejected, as such requests should not be viewed with an all-or-nothing mindset. Transparent and constructive communication can help parties explore whether a mutually acceptable arrangement can be arrived at.
Below are the types of FWA employees may request, which may even be applied in combination with each other:
|
Nature of flexibility |
Description |
Examples |
1 |
Flexi-place |
Working from different locations aside from the office |
|
2 |
Flexi-time |
Working at different timings with no changes to work hours and workload |
|
3 |
Flexi-load |
Working with different workloads with commensurate remuneration |
|
Employers to decide whether to grant FWA request based on reasonable business grounds
Employers should rest assured that it is not mandatory to grant every FWA request. Employers retain the prerogative to decide whether to grant a FWA request, though such discretion cannot be exercised capriciously, and instead must be based on reasonable business grounds.
The Guidelines do not prescribe specific acceptable and unacceptable ground(s) for rejecting FWA requests, save for some illustrations. This gives employers a fair amount of latitude to consider requests and respond reasonably with reference to the specific needs of their business or industry sector. The FWA Guidelines provide the following non-exhaustive examples:
Reasonable grounds for rejection |
Unreasonable grounds for rejection |
Negatively impacts business in terms of productivity, output, ability to offer certain services, or service quality |
Management wants to have sight of and physically monitor's staff performance |
Unfeasibility due to nature of role or job (e.g. customer/ client-facing roles) |
Acceding to one employee's FWA request leads to the firm having to accede to FWA requests of all employees |
Leads to increase in business costs for employer (e.g. employer is unable to support the costs involved in providing IT support to allow for FWA; or employer has to hire more employees to accommodate the FWA request) |
Firm has never allowed FWAs and the status quo works well |
If employees believe that their FWA requests have been unreasonably denied, employees may seek recourse internally (initially through conversations and thereafter reporting grievances internally), or externally with NTUC or unions, or the Tripartite Alliance for Fair & Progressive Employment Practices (TAFEP) for advice and assistance.
Companies run a serious risk of eroding their workforce if they use infractions of RTO policies as a lever to discipline / terminate employees without justification. Companies should also be aware of the reputational risk of failing to treat FWA requests reasonably, thereby being branded a non-progressive employer. This would hamper their competitive edge in hiring and retaining talent, the majority of which values flexible ways of working in light of shifting workplace norms.
Practical advice for companies implementing RTO and FWA policies
1. Implement RTO and FWA policies to clearly set expectations
An RTO policy should provide a clear rationale for the policy and the RTO requirements employees are expected to comply with. Companies should consider implementing mechanisms to notify employees of breach of RTO policies (such as a strike system), giving them the opportunity to rectify the situation, and putting in place an inquiry process before meting out severe disciplinary actions.
A FWA policy should set out the types of FWA available, and the guidelines on eligibility to use FWA. Where certain roles are clearly not amenable to certain types of FWA, this could be stated in the FWA policy. This policy should set out clear internal processes to make a FWA request, and the evaluation criteria for reviewing a FWA request, including setting out examples of reasonable or unreasonable business grounds to accept or reject a FWA request. The policy should also include internal procedures for reporting grievances arising from FWA requests.
2. Open, constructive discussion on FWA requests
When employees raise FWA requests, employers should not take a blanket one-size-fits-all approach. These should not be denied outright as being in contravention of RTO policies (most of which dictate that employees are to be in the office 5 days a week). Instead, employers should discuss FWA requests in an open and constructive manner with the employees, with a view towards trying to accommodate such requests, where possible.
Where the specific requests made cannot be accommodated for business reasons, the company should be prepared to discuss alternative arrangements that may be mutually beneficial.
Employers are at liberty to institute trial periods for both parties to test out FWA; and reconvene after the trial period to discuss the feasibility of the FWA, or an alternative FWA.
Employers should also undertake periodic reviews of their RTO and FWA policies to ensure they are relevant and instructive.
Finally, employers should also invest resources to provide adequate training for managers tasked to evaluate FWA requests and handle FWA disputes.
3. Dispute resolution mechanism for disputes relating to FWA (and RTO) policies
Under the FWA Guidelines, employers are encouraged to implement internal grievance procedures to resolve disputes arising from FWA requests. In line with this, employers should make clear that employees should seek to resolve such disputes internally through conversations or reporting grievances via the company's internal grievance procedures as the first port of call.
If such disputes remain unresolved, employers should note that employees may approach NTUC or unions, or the Tripartite Alliance for Fair & Progressive Employment Practices (TAFEP) for advice and assistance.
Upcoming Workplace Fairness Act
Employers should be mindful of the Workplace Fairness Legislation (WFL), which will come into effect progressively between 2026 and 2027. The WFL, which seeks to strengthen protections against workplace discrimination based on certain protected characteristics. Companies should ensure that FWA requests are handled in a fair and equitable manner, as opposed to being a further manifestation of workplace discrimination, given that many protected characteristics, such as caregiving responsibilities, pregnancy status, disabilities and mental health conditions, form the very reason why employees may apply for FWA requests in the first place.
Employees who are granted FWA requests should not suffer discriminatory treatment down the line, including being passed over for employment opportunities or benefits (e.g. promotions, overseas stints, secondments), or be considered more vulnerable during retrenchment exercises or other termination scenarios.
Conclusion
With the roll-out of RTO mandates and threats of disciplinary measures for non-compliance, employees may be dissuaded from requesting FWA, for fear that doing so will adversely affect their performance appraisals, remuneration, promotion opportunities or leave them vulnerable in retrenchment scenarios.
The FWA provides an avenue for employees to be able to formally request FWA and a framework for employers to consider such requests. Subject to business needs, employers should embrace this framework sincerely and in the interests of fostering a motivated and loyal workforce.
Insights featured on The Straits Times
Author Amarjit Kaur’s expertise on return-to-office policies and flexible work arrangements was recently featured in The Straits Times here. Below is an excerpt from the interview, including her practical tips for employers:
Tips for bosses on getting workers to return to the office:
- Provide clear communication about the rationale behind the policy and what is expected of employees.
- Consider a carrot-and-stick approach – incentivizing employees with career development opportunities, rewards, and recognition; and deterring non-compliance by clearly spelling out the spectrum of consequences.
- Avoid using infractions of return-to-office policy as a lever to terminate employment. Companies could run a serious risk of eroding their workforce and losing talent to another workplace or sector.
- Create an appealing and safe office environment, leveraging workplace technology and fostering trust based on feedback.
- Refrain from adopting a blanket one-size-fits-all approach when it comes to handling requests for flexible work arrangements. When employees raise such requests, these should not be denied outright as being in contravention of return-to-office rules.
- Be prepared to discuss alternative arrangements that may be mutually beneficial if specific flexi-work requests cannot be accommodated for business reasons. This also means considering flexi-load and flexi-time options such as staggered start times, shift work, and job sharing.
Global network of expertise at Withers
At Withersworldwide, our global network spans key jurisdictions, including Singapore, Hong Kong, the United Kingdom, the United States, and Europe. Our teams collaborate seamlessly across borders to provide comprehensive solutions for complex employment and cross-jurisdictional matters. Wherever you operate, we are here to support your legal needs with tailored advice and expertise.
Recent global updates include:
US employment update: Recent decisions and agency actions
Zero hours contracts - what is the UK Government proposing?