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Tripartite Guidelines on the Implementation of Flexible Work Schedules
To ensure that the implementation of flexible work schemes is not abused and will benefit both employers and employees, the Tripartite Workgroup was set up to formulate a set of guidelines to help companies formulate appropriate flexible work schedule schemes. The guidelines are as follows: -
Qualifying Conditions for Applications
- Rationale for Implementing Flexible Work Schedule
There must be a compelling need for the company to operate flexibly to cope with uneven and fluctuating business cycles to optimise its manpower resources for the benefit of the company and its employees. The company concerned must be able to support its proposal by providing information relating to its businesses, products or services that are seasonal or fluctuating in nature and hence requires flexible work schedule to better meet its demands.
- Income Stability
Companies should ensure that the incomes of their employees are stable in that they will continue to receive their monthly basic salary during the lull periods when they work less than the contractual hours.
- Occupational Safety and Health
Companies applying for the exemption should have a good track record in respect of safety and health. They should ensure that the safety and health of the employees is not compromised and that the employees would not be subjected to hazardous work environment and conditions as a result of implementing the flexible work schedule schemes. Regular inspections may be carried out by Ministry of Manpower (MOM) to verify the level of compliance of safety and health legislations and other measures taken to bring about a safe and healthy environment. In line with this objective, companies are required to observe the maximum 12 hours daily working limit and monthly 72 hours overtime limit, except in special circumstances where the Commissioner is satisfied that these limits may be exceeded.
- Gain Sharing or Incentives for Employees
The company should put in place a profit sharing or incentive scheme to share gains derived from the efficient use of manpower and productivity improvement as a result of implementing the flexible work schedule with their employees. Such incentive payments could be made to employees who participate in the scheme on a monthly, quarterly or less frequent interval basis.
- Consent from Unions and Affected Employees
Under the tripartite guidelines, companies should first seek the union’s consent or in the case of non-unionised companies, the consent from the majority (i.e. 50%+1) of the employees affected by the proposed scheme. The scheme should be clearly explained and communicated to the affected employees. After an exemption has been granted, MOM may, at any time deem fit, interview employees to get feedback on how the flexible work schedules have worked.
- Regular Review and Renewal of Exemptions
Exemption should only be granted for a specific duration of not more than 2 years in the first instance and on the condition that the company concerned will carry out regular reviews on a 6-monthly or yearly basis to ensure that the scheme can continue to achieve its objective. The company needs to seek renewal upon the expiry of the exemption but the subsequent period of exemption could be longer if the scheme has worked well. Companies which failed to comply with the stipulated conditions may have their exemptions revoked.
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