Background

MOM and its tripartite partners have introduced a slew of initiatives that work towards creating quality workplaces and improving the quality of life for Singapore’s workers. Our initiatives address a wide spectrum of issues from responsible outsourcing practices and Work-Life harmony to errant employers and flexible wages. These efforts have paid off thanks to the strong cooperative relationship between the Government, unions and employees.

In March 2008, the Tripartite Committee on CPF and Work-Related Benefits for Low Wage Workers launched its Tripartite Advisory on Responsible Outsourcing Practices. The Committee recognises that service buyers can positively influence workplace practices adopted by third-party contractors. The Advisory encourages end-user companies to ensure workers supplied by their third-party contractors receive basic employment terms and conditions, which include Central Provident Fund (CPF) contributions, annual leave, sick leave and overtime pay.

The six clauses in the Tripartite Advisory encourages service buyers to:

• Include compliance with Singapore's employment laws as a condition in the service contract with their suppliers;
• Encourage written employment contracts between service suppliers and their workers;
• Conduct checks on the financial standing of service suppliers;
• Award performance-based service contracts;
• Retain experienced workers; and
• Help workers qualify for employment benefits under the Employment Act.

To help employers understand the requirements of the Advisory, a guidebook was produced that includes a sample employment contract, a checklist for buyers of outsourced services, and answers to Frequently Asked Questions. The public sector will be taking the lead in adopting the Advisory.

On the private sector front, MOM is working with the Singapore National Employers Federation and the National Trades Union Congress to promote the Advisory to its members. As of July 2008, MOM and SNEF have conducted eight briefings attended by some 850 employers. The briefings aim to:

• Promote the Advisory and encourage best-sourcing, instead of cheap-sourcing;
• Help companies implement the advisory through sharing of best practices from companies.

Taking Errant Employers to Task

MOM ensures that employers understand their responsibilities to employees through industry engagement sessions and briefings on employment law. It also published information booklets on basic employment laws to create greater awareness amongst workers of their employment rights. The outreach efforts complement our enforcement actions.

MOM has also initiated proactive audits on companies to ensure they comply with the basic employment terms. We have also stepped up our enforcement efforts against errant contractors and labour suppliers for employment-related offences. In 2007, 35 companies were convicted or fined for various Employment Act offences, up from 18 in 2006.

Pledge Support for the Tripartite Advisory on Best Outsourcing Practices

Service buyers are encouraged to adopt the best practices recommended in this Tripartite Advisory on Best Outsourcing Practices.

To support this pledge and adopt the Advisory, please click here for the reply form.