Formalising Conversion Pathways for High-performing Contract Staff and Discouraging Perpetual Renewal of Short-term Contracts in Review of Tripartite Guidelines

60 Mr Sanjeev Kumar Tiwari asked the Minister for Manpower (a) whether the Ministry will strengthen the Tripartite Guidelines on the Employment of Term Contract Employees to (i) encourage employers to formalise conversion pathways for high-performing contract staff and (ii) discourage the perpetual renewal of short-term contracts for essentially permanent roles; and (b) if so, how will it be strengthened.

Dr Tan See Leng: Employees under a contract of service, including those on fixed-term contracts, are protected under employment legislation, such as the Employment Act, the Central Provident Fund Act and Work Injury Compensation Act. However, fixed-term contract workers could be disadvantaged in terms of benefits, such as annual and medical leave, which revert to minimum levels upon contract renewals. This is why the tripartite partners had issued the Tripartite Advisory on the Employment of Term Contract Employees, which sets out good employment practices for employers when engaging employees on term contracts. Employers who adopt progressive practices on the employment of term contract employees are also recognised via a Tripartite Standard.

The tripartite partners will continue to review our good practices concerning fixed-term contracts, including as part of the on-going review of the Employment Act, to safeguard our workers' interests while providing adequate flexibility for our businesses.