What Is the Fair Consideration Framework (FCF)?
The Fair Consideration Framework (FCF) is a set of rules designed to govern the recruitment of employees in Singapore.
These regulations were created by Singapore’s Ministry of Manpower (MOM) back in 2013. The concept behind the framework has always been to promote fair consideration for all Singaporeans applying for jobs. This article provides a more comprehensive overview of the FCF framework.
What Is the Fair Consideration Framework in Singapore?
Hiring an individual may seem like a pretty clear-cut process. But if you look closer, you’ll realise it’s filled with hurdles and potential risks. One risk employers face is facing legal action for discriminating against applicants.
In Singapore, the Fair Consideration Framework is the body of rules that governs these selection and recruitment processes. It ensures that all candidates are considered fairly regardless of nationality, age, race and sex. These laws dictate the entire hiring process, from the advertisement to the selection.
How Does the Fair Consideration Framework Affect Hiring Practices?
The Fair Consideration Framework has a large impact on how companies hire employees. It mainly affects how organisations advertise for positions. Here’s a detailed breakdown of the rules they should abide by when marketing vacant positions:
Post unbiased advertisements
Employers must be cautious when crafting job ads, especially in their choice of words and phrases.
For instance, it’s okay to say that you’re looking for a Buddhist to conduct a wedding ceremony. However, you’re not allowed to say, “Christian/ Muslim/ Buddhist/ other religious leader preferred.”
Complement the occupation in the Employment Pass (EP) Application
The work advertised should be identical to the occupation posted in the Employment Pass application. EP is simply a work visa handed out by the Ministry of Manpower to any foreigners looking to work in this country.
Clarify salary expectations
According to the FCF, you should also provide clear details regarding the salary. This way, a potential candidate knows how much to expect if they secure the position.
To be more specific, you should disclose the exact amount or range you expect to pay for the advertised role. If you provide a range, then it shouldn’t be too vast. In fact, the maximum amount should not exceed twice the stated minimum. For instance, if the minimum amount you’re offering is $5,500, the maximum should not exceed $11,000.
Pay attention to the advertisement’s duration
Another aspect that employers should be mindful of is the duration of their job advertisements. For starters, all job advertisements should be posted on MyCareersFuture. Once posted, the ads should run 14 days in a row.
If you make any alterations to the advertisement, you should repost it afresh on the website and run it for another 14 consecutive days. This gives the applicants ample time to view the changes and adjust their applications accordingly.
What Are the Key Requirements for Employers Under the Fair Consideration Framework?
The main takeaway of FCF is that all employers have to comply with Tripartite Guidelines on Fair Employment Practices. These guidelines are rooted in five fundamental principles, which are:
- Hiring based on merit – this means considering the candidates’ skills, work experience, and capability to accomplish specified tasks.
- Being respectful to employees – all workers should be accorded respect. Furthermore, organizations should embrace progressive HR management processes.
- Offering equal opportunities – employers are also expected to provide workers with fair and equal opportunities when it comes to training and development. This is crucial in helping them realise their maximum potential.
- Rewarding justly – employers should not be biased when rewarding their staff. To ensure fairness, they should consider important factors like the employee’s strengths, work performance, experience and contribution to the company.
- Following labour regulations – all organisations are required to comply with labour regulations as well as the Tripartite Guidelines on Employment Practices.
How Is Compliance with the Fair Consideration Framework Monitored and Enforced?
The MOM has measures in place to ensure that all companies follow the Fair Consideration Framework.
One way it ensures compliance is by penalizing employers found violating the FCF guidelines. The most common penalty you’re likely to incur is getting barred from renewing or applying for work passes for your foreign hires.
In some cases, you may also incur penalties in the form of monetary fees. Plus, your firm will be placed under the FCF Watchlist, where your hiring practices are examined further.
Your company can be listed in this watchlist if:
- It has a ridiculously high proportion of foreign professionals, managers, executives and/or technicians (PMETs) relative to other companies in the sector.
- It has a high number of PMETs from just one nationality.
- Grievances regarding discriminatory hiring practices have been brought forward.
So, what does it mean if your company gets listed on FCF’s watchlist? No need to worry; you can work with the TAFEP to get it removed. The Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) will recommend the hiring practices you should follow to improve your firm’s reputation.
