Out-Law News 1 min. read

Singapore set to introduce three-tier workplace dispute process


Recently legislation in Singapore proposes a new, three-tiered framework for resolving workplace disputes if passed, impacting the way both employers and employees resolve claims.

The Workplace Fairness (Dispute Resolution) Bill (49-page / 209KB PDF) is the second piece of legislation under the Workplace Fairness Act (WFA) and was introduced in parliament on 14 October 2025, with the aim of promoting fair treatment within the workplace and smooth adjudication of disputes. If passed, it is expected to take effect by 2027.

Mayumi Soh, an expert in employment law at Pinsent Masons, said: “Employers should take note of the three-tiered framework for resolving workplace disputes and consider whether any changes will be required to its internal standard operating procedures.”

The WFA will generally apply to employers with 25 or more employees in Singapore at the initial stage. However, the Tripartite Guidelines on Fair Employment Practices will continue to apply to all employers regardless of their size.

“Employers and their HR teams in Singapore should also review their internal grievances procedures, if any, to ensure compliance with the new WFA legislation. Even if an employer does not meet the current minimum threshold of 25 employees, it is good practice to put in place a grievance policy to ensure that there is a formal and consistent way which the employer will consider and review potential claims,” Soh said.

The bill also prohibits adverse employment decisions based on 11 protected characteristics:  age, nationality, sex, marital status, race, religion, pregnancy, language ability, and caregiving responsibilities, disability or mental health condition.

Under the legislation, employees who believe they have been discriminated against can raise the issue through their employer’s internal grievance-handling processes. This step aims to ensure any miscommunications are clarified and to help preserve employment relationships where possible.

If the matter remains unresolved, the employee and their employer can proceed to mediation, seeking mutually agreeable outcomes within a prescribed period of time.
Finally, employees can seek adjudication through the Employment Claims Tribunal (ECT) or the High Court. The bill proposes to expand the ECT’s monetary jurisdiction from a maximum of S$30,000 (approx. US$23,196) to S$250,000 (approx. US$192,875) for discrimination claims under the WFA, with the High Court handling claims above this threshold.

Soh said: “We understand that the higher threshold is to ensure that majority of the cases can be addressed by ECT instead of going to court. It should be noted however, that it is expected that lawyers will not be able to represent employers at the ECT, similar to the current position.”

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