The Fair Consideration Framework (FCF) in Singapore is a set of guidelines and measures aimed at promoting fair and balanced consideration for Singaporeans in the job market. The FCF was introduced in 2014 by the Ministry of Manpower (MOM) in response to concerns about the limited opportunities for Singaporeans in the job market, particularly in certain industries and sectors.

The FCF requires employers in Singapore to advertise job openings on the Jobs Bank for at least 14 days before they can apply to the MOM for an Employment Pass (EP) to hire a foreign worker. This ensures that Singaporeans have a fair opportunity to apply for and be considered for the job. Employers are also required to consider Singaporeans fairly and objectively, and to provide valid reasons if they choose to hire a foreign worker over a Singaporean. The FCF is an important consideration for companies in Singapore for several reasons. First, compliance with the FCF is a legal requirement for companies in Singapore. Non-compliance can result in penalties and fines, as well as damage to a company’s reputation. Second, the FCF promotes diversity in the workforce, which can bring a range of benefits to companies including increased innovation and creativity, improved problem-solving skills, and a better understanding of diverse customer needs. Finally, the FCF helps companies to access a wider pool of talent, both Singaporean and foreign and to make informed hiring decisions that best meet the needs of their business.

Benefits of the FCF

There are several benefits of the Fair Consideration Framework (FCF) in Singapore for both employers and employees.

For employers, some of the benefits of the FCF include:

1. Increased diversity in the workforce: The FCF promotes a more diverse and inclusive workforce by requiring employers to consider Singaporeans fairly and objectively when hiring. This can bring a range of benefits to companies, including increased innovation and creativity, improved problem-solving skills, and a better understanding of diverse customer needs.
2. Improved talent acquisition: The FCF allows employers to access a wider pool of talent, both Singaporean and foreign. This can help companies to find the best candidates for their needs and to make informed hiring decisions.
3. Enhanced reputation and brand image: By complying with the FCF, companies can demonstrate their commitment to fair and balanced hiring practices, which can enhance their reputation and brand image.

For employees, some of the benefits of the FCF include:

1. Increased job opportunities: The FCF helps to create a level playing field for Singaporeans in the job market, providing them with more opportunities to apply for and be considered for jobs.
2. Fair and unbiased hiring practices: The FCF ensures that Singaporeans are considered fairly and objectively during the hiring process, reducing the risk of bias and discrimination.
3. Greater job security: By promoting the hiring of Singaporeans, the FCF can help to increase job security for employees, as companies are less likely to rely solely on foreign workers.

Challenges of the FCF

There are several challenges that companies in Singapore may face in implementing the Fair Consideration Framework (FCF). Some of these challenges include:

1. Time and resources: Implementing the FCF may require a significant investment of time and resources, as employers are required to advertise job openings on the Jobs Bank for at least 14 days before they can apply for an Employment Pass (EP) to hire a foreign worker. This can be particularly challenging for small or resource-constrained companies.
2. Difficulty in finding qualified local candidates: In some cases, companies may struggle to find qualified local candidates for certain roles, particularly in industries or sectors where there is a shortage of skilled workers.
3. Potential bias in the hiring process: Despite the best efforts of companies, bias can sometimes occur in the hiring process. The FCF requires employers to consider Singaporeans fairly and objectively, but it is up to the employer to ensure that this occurs in practice.

Conclusion

1. Compliance with the FCF is a legal requirement: Companies in Singapore are required to comply with the FCF, and non-compliance can result in penalties and fines, as well as damage to a company’s reputation.
2. The FCF promotes diversity and inclusivity: The FCF promotes a more diverse and inclusive workforce, which can bring a range of benefits to companies including increased innovation and creativity, improved problem-solving skills, and a better understanding of diverse customer needs.
3. The FCF helps to create a level playing field: The FCF helps to create a level playing field for Singaporeans in the job market, providing them with more opportunities to apply for and be considered for jobs.
4. The FCF is just one aspect of employment legislation: The FCF is just one aspect of employment legislation in Singapore, and companies need to be aware of and comply with all relevant employment laws and regulations.

Companies need to stay up to date with the FCF and other employment legislation in Singapore. One way to do this is by attending employment act workshops, such as those conducted by SHRI Academy. These workshops provide companies with the opportunity to learn more about the FCF and other employment legislation, ask questions and get guidance on compliance. By attending such workshops, companies can ensure that they are complying with all relevant laws and regulations, and can protect their business and their employees.