Flexible Working Arrangements (FWA) for 2025: What Employers Need to Know

Flexible Working Arrangement 2025 Singapore — Flexible working arrangment

Flexible Working Arrangements (FWA) for 2025

As of 1st December 2024, significant changes to Flexible Working Arrangements (FWA) came into effect in Singapore, impacting both employers and employees across the island. These updates aim to offer a more inclusive, adaptive approach to work, enabling employees to better balance their professional and personal lives. With the implementation driven by tripartite guidelines, companies and human resource professionals are naturally more concerned about the business impact caused by flexible-work arrangements. Hence, it is essential to understand the new requirements and how these changes will affect your business operations. Here’s a detailed guide on what you need to know about Flexible Working Arrangements in 2025.

What are Flexible Working Arrangements (FWA)?

Flexible Working Arrangements (FWA) refer to any work schedule or arrangement that deviates from the traditional 9-to-5 workday. This includes, but is not limited to, flexible hours, remote working, compressed work weeks, job sharing, and part-time arrangements. FWAs aim to promote a healthier work-life balance while helping businesses improve productivity and retain talent.

Key Changes to FWA in Singapore (Effective from 1st December 2024)

As of 1st December 2024, the Singapore government introduced updates to the Employment Act (EA) to enhance employee access to FWAs. Here are the main changes employers should be aware of:

1. Expanded Eligibility for FWA Requests

Previously, employees had limited eligibility for making flexible work arrangement requests. With the new regulations, employees who have been with the company for at least six months are now eligible to request FWA formally. This significant shift formalized the need for a dedicated channel to make FWA requests. Employees can make a formal request in writing. However, it should be noted that these requests are subject to approval.

2. Employer’s Obligation to Consider FWA Requests

Under the new changes, employers are now legally required to carefully consider any request for flexible working arrangements made by employees who meet the eligibility criteria. While employers are not obligated to approve every request, they are supposed to make a decision based on reasonable business grounds. Employers are also required to provide a clear rationale for any rejection reasons and engage in a meaningful discussion with the employee regarding their needs.

An approval process is necessary to ensure that all flex-work requests are addressed and evaluated. Proper consideration after careful deliberations should be given and documented for all requests from employees. Solid reasons on acceptable business grounds should be communicated to the employees if their applications are rejected.

Alternative arrangements should be explored, including one of the three types of flexible work arrangements (Flexi-load arrangement, flexi-time arrangement or flexi-place arrangement).

3. Prohibition of Discrimination - Request for FWAs

Employers are prohibited from discriminating against employees who request flexible working arrangements. This includes bias in performance reviews, promotions, and career progression due to an employee requesting flexible or remote work hours.

4. Clear Communication of FWA Policies

Employers must ensure that their policies on FWAs are communicated to all employees. This includes having a formal process for making a request, the types of flexible arrangements available, and any restrictions or conditions that may apply.

5. Documentation and Record-Keeping

Employers must now keep accurate records of FWA requests and the decisions made. This includes the rationale for approval or rejection, which can be vital for future reference and in case of disputes.

How FWA Affects Companies

Adopting flexible working arrangements can have both positive and negative effects on your company, and understanding these impacts will allow you to make informed decisions:

Positive Effects

Increased Employee Satisfaction and Retention Flexible work options are highly valued by employees, especially as work-life balance becomes increasingly important. Offering FWAs can help your company attract and retain top talent, reducing turnover rates and recruitment costs. While we observe some high-profile deviation from a flexible work environment by some reputable companies, a hybrid arrangement is still the preferred choice for an inclusive workplace and encourages a positive workplace culture.
Enhanced Productivity When employees have more control over their working hours or location, they can structure their workday to match their peak productivity periods. This leads to higher job satisfaction and more efficient work output.
Reduced Operational Costs Not considering the human resources processes involved, having a remote work structure or rotational hybrid model reduces cost and frees up additional resources. Your company may experience reduced office space and utility costs by offering remote work or flexible hours. This can be particularly beneficial for businesses looking to optimize their expenses in a competitive environment.

Negative Effects

Potential Challenges in Team Collaboration While remote work and flexible hours offer benefits, they can also create challenges in communication and collaboration. Teams that rely on face-to-face interactions may experience delays or difficulty coordinating work.
Increased Management Complexity Managers may face new challenges in tracking productivity, managing remote teams, and ensuring that FWAs are fairly implemented. Effective communication and clear expectations are key to overcoming these challenges. The additional cost burden for such an administrative process may also be a company consideration.
Technology and Security Risks Remote working may require investment in new infrastructure and security measures. Employers must ensure remote workers have access to the necessary tools and maintain data security.

What Employers Should Do

To ensure compliance with the new FWA regulations and maximize the benefits of flexible working arrangements, employers should take the following steps:

1. Review and Update Your FWA Policies

Ensure your company’s FWA policies are current with the new legal requirements. Review your policies to confirm they clearly outline eligibility, the process for requesting FWAs, and any criteria for approval.

2. Engage in Open Dialogue with Employees

Create an open channel for communication with your employees. Encourage them to voice their needs and concerns regarding FWAs. This can help foster mutual understanding and a supportive work environment and ensure that your company is meeting the needs of its workforce.

3. Train Managers on FWA Implementation

It’s essential to equip managers with the tools and skills to manage a flexible workforce effectively. Provide training on assessing FWA requests, monitoring performance, and ensuring that flexible arrangements do not disrupt team dynamics or productivity.

4. Leverage Technology

Invest in tools and software that enable remote collaboration and performance tracking. Cloud-based solutions, project management tools, and video conferencing platforms can enhance communication and ensure that employees remain productive, no matter where they work.

5. Monitor and Adjust

Flexible working arrangements should be regularly evaluated to ensure they are meeting both company and employee needs. Solicit feedback from employees and managers will facilitate mutual understanding between employers and employees. This, in turn, promotes a culture of trust.

Conclusion - FWA Singapore

The changes to Flexible Working Arrangements (FWA) in Singapore, effective from 1st December 2024, offer businesses an opportunity to adapt to the evolving demands of the workforce. While the mandatory guidelines require specific formalisation of the human resource processes and policies, companies should view this change as a positive move.

FWA is likely here to stay and for good reasons. From an employer's and employee's standpoint, a hybrid model with a certain degree of flexibility seemed to be the sweet spot. Notwithstanding specific industries, studies have suggested that a hybrid model yields the highest productivity of the workforce.

By embracing these changes, employers can foster a more flexible, productive, and employee-friendly work environment. Understanding the new regulations, assessing their impact, and taking proactive steps will ensure that your company remains compliant while reaping the benefits of FWAs.

As the workforce evolves, being adaptable and responsive to FWA requests is not just a legal requirement; it’s an opportunity to enhance your company's appeal and create a more engaged, satisfied workforce.

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