Tripartite Guidelines
Refer to the Tripartite Guidelines on Fair Employment Practices to ensure that you abide by the guidelines on all the relevant practices.
Implementing a Fair Performance Management System (For Employers)
How to implement a fair and progressive system.
What Is Performance Management
Performance management is a systematic process to monitor and assess employee performance. It involves formal appraisals, regular feedback, and the identification of training and development needs. These enable employees to contribute more effectively towards business goals.
Why It Matters
A good performance management system:
- Is an opportunity to give and receive constructive feedback, and set goals collaboratively.
- Helps you gather information about underperforming employees and work out how they can perform better.
- Motivates high performers to tackle bigger challenges.
What You Should Do to Be Fair
The Tripartite Guidelines state what you must do as a fair employer.
- Develop measurable standards for evaluating job performance.
- Review your criteria regularly to check against discrimination.
- Document and keep all performance reviews for at least one year. This will help you appraise objectively during the next appraisal.
- Set up an internal appeal process to address employees' questions or concerns on their appraisals.
- Communicate posting and training opportunities to all eligible employees.
How to Be Progressive
For more information on how to create a good performance management system, download the Performance Evaluation and Development Plan (Word document).
You can also browse our resource collection to get tips, tools and ideas and learn from case studies and interviews with progressive employers.
Employers should take note that attendance-related incentive schemes which take into account sick leave utilisation are not considered reasonable or fair. Sick leave is a basic statutory protection under the Employment Act and employers are legally required to excuse their employees from work if they are certified unfit for work by their doctors. Any measure that either incentivises them for not taking statutory sick leave for any period of time or penalises them for taking sick leave is deemed unfair and unreasonable and runs contrary to the Tripartite Guidelines on Fair Employment Practices (TGFEP). TAFEP will refer employers who continue with incentive schemes based on sick leave utilisation to MOM for enforcement action, which could include the suspension of work pass privileges.
Employers (who are SNEF members) can approach SNEF for further advice on whether an incentive scheme is permissible, or unionised companies can approach NTUC and work with the union to mutually agree on an alternative scheme. You can also refer to TAFEP’s article on what to consider before implementing any incentive schemes.
Frequently Asked Questions
Can an employer take an employee's use of sick leave into account during performance appraisals?
Employers should not assess or penalise employees in performance appraisals based on their use of statutory paid sick leave. Performance appraisals should be conducted fairly and objectively, based on an employee’s work performance and outcomes, rather than legitimate absences supported by certified sick leave.
Using sick leave as a negative factor in appraisals, promotions, or incentives may be considered penalising employees for exercising their statutory sick leave entitlement. Such practices are inconsistent with fair employment practices.
Can an employer implement incentive schemes based on other statutory leave types?
Employers must not deny employees of statutory leave entitlements. Incentive schemes tied to the utilisation of statutory leave are inconsistent with fair employment practices.
When determining remuneration, incentives or rewards, employers are encouraged to take into account employees' performance, work outcomes and contributions, rather than their utilisation of statutory leave entitlements. Incentive-based schemes should not be linked to attendance, as it would discourage employees from taking leave that they are entitled to and/ or genuinely require.