No reason to cut pay for flexible workers: MOM

There is no reason for employers to cut the pay of employees under flexible work arrangements (FWAs) if their productivity isn't affected, according to Minister of State for Manpower Gan Siow Huang.

Gan made the remarks on Tuesday when answering questions in Parliament over the newly introduced Tripartite Guidelines on Flexible Work Arrangement Requests (TG-FWAR), which will take effect in December, Channel News Asia reported.

One of the questions raised would be whether employers would need to turn down an employee's request for FWAs if it meant getting fewer workdays that will drag their gross wage below the prescribed floor of the progressive wage model.

"For workers who are on flexible work arrangements, if their work output, productivity is not affected, actually there is no basis for employers to reduce their pay," Gan said as quoted by CNA.

Impact of FWAs on local recruitment

Meanwhile, the official also addressed emerging reports of employers rethinking about hiring local talent and considering outsourcing overseas as FWAs become more popular.

"With or without the guidelines, remote work and outsourcing are already global trends, particularly after the COVID pandemic. Whether the trend will continue depends on whether employers feel that it makes business sense, and employers will need to weigh the pros and cons," Gan said.

The official further pointed out that even if foreigners will still compete with Singaporeans even if they're not in the country.

"What is more important is for our workers to continually upskill, sharpen our competitive edge, and stay productive. We will then be able to compete effectively for jobs not just in Singapore, but globally," she added.

The Ministry of Manpower (MOM) introduced in April the TG-FWAR to mandate employers to consider flexible work requests but leaves it to them if they will allow or reject such requests based on reasonable grounds.

"It does not make sense to require businesses to offer FWAs even when it negatively impacts their business and affect employment prospects for Singaporeans," MOM said. "Employers should therefore continue to have the prerogative to determine work arrangements that work for the team, business, and clients."