Will the FCF succeed in effecting fair consideration and opportunity?

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The Fair Consideration Framework's Effectiveness Remains Uncertain

The Fair Consideration Framework (FCF), introduced as a measure to encourage employers to provide Singaporean professionals, managers, and executives (PMEs) with fair opportunities, faces an uncertain future regarding its success in ensuring equitable consideration and opportunity. The framework mandates that most employers must advertise PME job vacancies on the Workforce Development Agency's jobs bank for at least 14 days, making these positions accessible to Singaporeans. Following this advertising period, employers are permitted to apply for an Employment Pass to hire a foreign PME if no suitable local candidate is identified. However, a significant limitation of the FCF is that it does not compel employers to formally demonstrate the absence of suitable Singaporean PMEs for the advertised role, a requirement common in many other countries.
FCF Mechanism and Intent

The FCF was conceptualised as a "nudge" to influence employer behaviour, aiming to foster a more inclusive hiring environment for Singaporean PMEs, who represent approximately one-third of the nation's workforce. The core mechanism involves a mandatory 14-day advertising period on the jobs bank, serving as an open call to Singaporean talent. This step is intended to provide a baseline level of consideration for local candidates before an employer proceeds with hiring a foreigner via an Employment Pass. The underlying principle is to promote fair chances in both job acquisition and professional development opportunities for citizens.
Potential Shortcomings and Criticisms

A primary concern raised about the FCF is its lack of a stringent labour market testing requirement. Unlike practices in several other nations, the framework does not obligate employers to prove that no qualified Singaporean PMEs were available for the advertised position. This omission opens avenues for potential circumvention, where employers might engage in tokenism. Such practices could involve nominally hiring local candidates to fulfil the advertising requirement while continuing to favour foreign hires, thereby undermining the FCF's objective. The article suggests that measures like quotas and levies, currently applied to lower-skilled foreign workers, could be considered as supplementary tools.
Government's Approach and Enforcement

The Singaporean government's strategy with the FCF leans towards a calibrated, less interventionist approach, preferring "nudges" over stringent legislation for employment practices. While the FCF includes enforcement mechanisms, such as scrutiny of firms with room for improvement, potential delays in EP application reviews, or curtailment of work pass privileges, sanctions are likely to be reserved for the most egregious cases. This light-touch enforcement strategy reflects a broader governmental reluctance to become overly interventionist in employer hiring decisions, relying instead on persuasion and the belief that behavioural change is best achieved through gradual influence rather than strict regulation.

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Will the FCF succeed in effecting fair consideration and opportunity?

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