Singapore Employment Outlook 2026

1. Workplace Fairness Act 2025: Further Guidance

The text of Singapore’s first anti-workplace discrimination legislation, the Workplace Fairness Act 2025 (the “WFA”), is now finalised and expected to become operational by the end of 2027. In the interim, we are looking out for:

• Guidance on disability accommodation: What reasonable accommodations are employers expected to make, and when can they legitimately refuse to employ a disabled individual? An advisory addressing this issue was alluded to as early as 2024.
• Guidance on discrimination claims: Discrimination claims up to SGD 250,000 will go before the Employment Claims Tribunals, where no lawyers are allowed; claims beyond that go to the High Court. But how will damages be calculated, and will there be caps? Parliamentary debates and early reports contain suggestions that some caps may apply.
• Guidance on exceptions: The WFA allows an employer to consider a protected characteristic if it is a ‘genuine requirement’ of a job. We hope for tangible examples. We expect that the threshold to rely on this exception should be kept high.

2. Restrictive Covenant Guidelines: Long Overdue

Guidelines on restrictive covenants were targeted for release in 2024 but have not been published so far. Based on early indications, these guidelines may:

• Summarise common law principles for the lay reader.
• Establish the Ministry of Manpower’s expectations on market norms.
• Outline the expected protections for manual workers.
• Address the use of restraints in retrenchment scenarios.

3. Misconduct by Regulated Individuals: Updated Framework

An updated framework for reporting misconduct by regulated individuals will take effect from 1 January 2027. Details are set out within the Monetary Authority of Singapore’s revised Notice on Reporting of Misconduct of Representatives (published on 30 December 2025). Key changes include:

• Reportable misconduct streamlined to (i) contraventions of market conduct provisions; and (ii) acts involving fraud, dishonesty, illegal monetary gains, or similar offences. Previous requirements to report failure to satisfy fit and proper criteria, breach of internal policy or code of conduct have been removed.
• The Monetary Authority of Singapore will require financial institutions to report misconduct within 21 days, with limited exceptions.
• Crucially, subjects of the report must also receive a copy within 21 days after the report has been made – this applies also to any updates to the report. Limited exceptions apply.
• New reporting templates are expected to be issued in the second quarter of 2026.

4. Employment Act Review: In Progress

Last reviewed in 2019, Singapore’s primary employment legislation is now being reviewed. Recommendations are expected by the second half of 2026. Early indicators suggest:

• An increase to statutory annual leave (currently 7 – 14 days).
• A periodic revision to the scope of employees with overtime entitlements (currently SGD 4,500 for workmen; and SGD 2,600 for other employees who are neither workmen nor professionals, managers or executives).
• Potential changes to the oft-criticised statutory automatic transfer provision (Section 18A).

5. Demographic-driven Changes: Confirmed

• Shared Parental Leave: From 1 April 2026, eligible parents will be entitled to 10 weeks’ shared parental leave (up from 6 weeks).
• Retirement & Re-employment: From 1 July 2026, the retirement and re-employment ages will be 64 and 69 respectively (up from 63 and 68).

6. AI and Employee Monitoring: Potential Scrutiny

AI tools and employee monitoring have drawn attention. Watch for possible guidance on:

• AI use in Employment Decisions: During WFA debates, AI was flagged for discriminatory hiring risks.
• Employee Tracking & Monitoring Practices: In 2025, an employer rolled back its sick leave location-sharing requirement after a union intervened.

Conclusion

2026 is a year of strategic attention. Guidance that is expected to arrive will determine what preparation looks like and when it's needed. We will be watching closely.