Speech at The Children Development Co-Savings (Amendment) Bill 2008 speech

Mr Gan Kim Yong, Acting Minister for Manpower

Introduction

Mr Speaker, I thank Members for their support of the Bill. I will address some of the issues raised by the Members on the workplace-related measures, before Dr Balakrishnan delivers the closing address.

Discrimination and Employability of Women

2.   Mr Zaqy Mohamad and Mdm Halimah Yacob expressed concern about the impact of the enhanced leave measures on the employability of women.

3.   Let me first clarify that under the current Employment Act, it is already an offence to dismiss employees without sufficient cause during the last three months of pregnancy, or to terminate their employment when they are on maternity leave. As part of this year's enhanced Marriage and Parenthood Package, we will strengthen the protection for pregnant employees in both the Employment Act and the CDCA. In this regard, we will require employers to pay maternity leave benefits to employees who are retrenched during their last three months of pregnancy; or dismissed without sufficient cause during their last six months of pregnancy. These measures were supported by the tripartite partners as being necessary for ensuring basic employment protection for pregnant employees.

4.   However, we should not believe that legislation is the panacea to all discrimination-related problems – because it is not. The real solution is to change employers' mindsets so that they understand the benefits of and to adopt fair employment practices, and create a family-friendly work environment. This is the reason why the Tripartite Alliance on Fair Employment Practices (or TAFEP) has been set up in May 2006. TAFEP has done a good job in promoting fair employment practices over the years. To address Mr Zaqy's and Mr Sim's concerns on the recruitment process, TAFEP has issued a set of “Tripartite Guidelines on Fair Employment Practices” that promotes non-discriminatory hiring practices. Employers are advised to avoid questions that are not relevant to the requirements of the job during the job interview. Employers are also advised to adopt appraisal systems which are fair and objective and reward their employees based on their ability, performance, contribution and experience.

5.   I also agree with Mr Zaqy and Mdm Halimah that while employers should be fair; employees themselves should also be flexible and try to understand the needs of their organisations as well as the concerns of their co-workers before taking leave. My Ministry will work with employers and unions on educating and raising awareness of the roles and responsibilities of both employers and employees to facilitate the smooth implementation of the enhanced leave measures.

6.   Mdm Halimah raised the concern about unscrupulous employers who place women on short-term contract work to avoid paying maternity benefits. To help more female employees be eligible for maternity leave, including those on short term employment contract, we have proposed to reduce the qualifying period for maternity leave from 180 days to 90 days. So far, the number of complaints to MOM regarding employers who put female employees on short-term contracts to avoid paying maternity benefits are still small. Notwithstanding this, we will monitor the situation carefully and decide what needs to be done.

7.   I am confident that majority of employers in Singapore are enlightened and treat their employees fairly. As highlighted by Mdm Halimah, employees who encounter employment-related problems or feel discriminated against at the workplace can approach the Ministry or TAFEP for assistance.

Paternity Leave

8.   Mr Zaqy also requested for statutory paternity leave to be introduced. Dr Vivian has explained that the enhanced childcare and infant care leave also apply to fathers.

Impact on Businesses

9.   Some Members have also highlighted concerns of increased business costs and the impact on business continuity caused by the absence from work by their female employees. These are genuine concerns that were discussed extensively when my Ministry consulted key employer leaders from Singapore National Employer's Federation (SNEF) and Singapore Business Federation (SBF) earlier this year. Many of their suggestions were incorporated in the finalised leave measures and arrangements.

10.   For example, we have accepted the suggestion by some employers for the Government to co-share the cost of these additional measures. This is why the Government will be funding the last 8 weeks of maternity leave for the first two confinements and the full 16 weeks for the third and subsequent confinements. The Government will also pay for 3 out of 6 days of childcare leave. To Mr Zaqy's suggestion on extending the requirement for employers to pay maternity leave benefits to female employees who are retrenched from the proposed last 3 months of their pregnancy to the last 6 months, I would like to explain that this is a new measure and was formulated based on tripartite consensus after extended discussion. Since it will incur an additional cost to employers and retrenchment is neither the fault of the employer nor the employee, we have decided to limit the requirement to pay maternity leave benefits to retrenched female employees to the last 3 months of pregnancy for now. To Mr Zaqy's concern, aggrieved pregnant employees who feel that their employers may disguise their dismissal as a retrenchment exercise. Aggrieved employees can approach MOM for assistance and we will investigate it.

11.   We have also taken in industry feedback on the need for flexibility, to allow businesses to manage the impact on their operations. Hence, the last 8 weeks of maternity leave may now be taken over 12 months from the birth of the child, instead of 6 months. In addition to these, employers may continue to tap on the Work-Life Works!, and Flexi-Works! schemes to help them defray the costs of implementing work-life initiatives.

Conclusion

12.   In closing, I would like to urge employers to also implement work-life measures that support employees in both their work and family lives. I am certain that most employers understand the benefits of doing so. While the Government is doing its part to affirm the importance of family and the value of children to our society, each of us has a role to play in creating a more supportive environment to raise our future generations. Employers and employees should work harmoniously to ensure the smooth implementation of the Marriage and Parenthood package, and create a win-win situation where both business and personal needs can be met. Sir, I support the bill.