Understanding the Fair Consideration Framework for EP Applications

Singapore is widely regarded as one of the most business-friendly countries in the world. With its strategic location, robust legal system, and strong workforce, it’s no surprise that companies from across the globe choose to operate here. However, in its commitment to protect local employment opportunities, the Singapore government has introduced measures to ensure that foreign hires are fairly balanced with local employment efforts.

One of the most important policies in this regard is the Fair Consideration Framework (FCF). If you’re applying for or managing Employment Pass (EP) applications in Singapore, understanding the FCF is critical to ensuring compliance and increasing your chances of approval.

In this guide, we break down what the Fair Consideration Framework is, why it matters for EP applications, how employers can comply with it, and how professional services like https://employmentpassapplication.sg/ can help streamline the process.

What Is the Fair Consideration Framework?

The Fair Consideration Framework was introduced by the Ministry of Manpower (MOM) in 2014 to promote fair hiring practices. It requires employers to consider Singaporeans fairly for job vacancies before offering the roles to foreign professionals under an EP.

The FCF aims to:

• Ensure equal access for Singaporeans to job opportunities

• Encourage companies to build a strong local core workforce

• Promote transparency in hiring practices

• Discourage discriminatory hiring or unfair hiring of foreigners

While hiring foreign talent is not discouraged, companies must demonstrate that they have made genuine efforts to consider qualified local candidates.

FCF and the EP Application Process

The Fair Consideration Framework directly affects the Employment Pass application process. Before submitting an EP application, most employers must advertise the job vacancy on MyCareersFuture.sg, which is the official government job portal managed by Workforce Singapore (WSG).

This job advertisement requirement serves as a form of labour market testing, allowing locals the opportunity to apply for and be considered for the job before a foreigner is hired.

Job Advertising Requirements Under FCF

Here are the current requirements for advertising under the FCF:

1. Post the job on MyCareersFuture.sg

   • The job posting must be visible for at least 14 consecutive days before applying for an EP.

2. Job Ad Must Contain Clear Information

   • Include job title, duties, qualifications, experience required, and salary range.

   • Avoid discriminatory language, such as age, gender, or nationality preferences.

3. Job Must Be Open to All Singaporeans

   • The job ad must be accessible to all eligible local candidates without unnecessary restrictions.

4. Review and Interview Suitable Locals

   • Employers are expected to genuinely evaluate local applicants who meet the job criteria.

Exemptions from the Job Advertising Requirement

Some EP applications are exempt from the FCF job posting requirement. These include:

• Jobs with a fixed monthly salary of SGD 22,500 or more

• Firms with 10 or fewer employees

• EP renewals with no changes to the job role or salary

• Intra-corporate transfers under international agreements

However, MOM retains the right to review all applications, including exempt ones, if there are concerns about unfair hiring practices.

Penalties for Non-Compliance

Companies that fail to comply with the Fair Consideration Framework may face:

• EP application rejections

• Public listing on MOM’s watchlist of non-compliant companies

• Restrictions on future work pass applications

• Inspection or investigation by MOM

Employers placed on the watchlist must improve their hiring practices before they can resume applying for EPs.

Integrating FCF into Your Hiring Workflow

To avoid non-compliance and strengthen your EP applications, companies should integrate FCF into their hiring process:

1. Advertise Every Vacancy Transparently

   • Use MyCareersFuture.sg for all PME (Professionals, Managers, Executives) roles.

   • Maintain records of when the job was posted and taken down.

2. Shortlist Local Candidates

   • Conduct interviews and maintain documented justifications for why a local was or wasn’t hired.

3. Establish Clear Hiring Policies

   • Ensure your HR team is trained in non-discriminatory recruitment practices.

4. Maintain Balance in Workforce Composition

   • Regularly assess your local-to-foreign employee ratio and work to develop a strong local core.

If you’re unsure whether your hiring approach aligns with MOM expectations, you can get professional guidance from https://employmentpassapplication.sg/.

FCF in Relation to COMPASS

Starting in 2023, the Complementarity Assessment Framework (COMPASS) was introduced to evaluate EP applications based on a point system. While COMPASS is separate from FCF, the two work hand-in-hand.

Under COMPASS, companies earn points for:

• Having a diverse workforce

• Maintaining strong local employment support

• Offering competitive salaries

• Hiring individuals with relevant qualifications

Failing to comply with the Fair Consideration Framework can negatively affect your COMPASS score — and may ultimately result in EP rejection.

Thus, a company with poor local hiring practices will likely struggle to meet both FCF and COMPASS requirements.

Why It Pays to Engage a Professional EP Consultant

Navigating the Fair Consideration Framework can be tricky, especially for small businesses or foreign companies newly entering Singapore. A professional EP consultancy such as https://employmentpassapplication.sg/ can help by:

• Reviewing your job ad for compliance

• Advising on COMPASS and FCF alignment

• Preparing and submitting EP applications correctly

• Providing assistance with interview documentation

• Handling appeals if an EP is rejected due to FCF issues

Their end-to-end services give you peace of mind and reduce the risk of non-compliance.

Common Mistakes to Avoid

To stay compliant and increase your EP approval success rate, avoid these common pitfalls:

• Skipping the job posting step (unless exempted)

• Posting vague job ads with insufficient detail

• Not offering a fair salary range in the listing

• Failing to engage with local applicants

• Recycling old job descriptions without updates

• Using discriminatory language (e.g., “only foreigners,” “prefer PRs only,” etc.)

Each of these errors can raise red flags during MOM’s review process.

Conclusion

The Fair Consideration Framework reflects Singapore’s ongoing effort to balance foreign talent with local workforce development. As an employer or EP applicant, it’s no longer enough to simply meet salary or qualification requirements — you must show that fair hiring practices are being followed.

By understanding the FCF and incorporating it into your company’s recruitment process, you’ll not only stay compliant but also improve your company’s COMPASS score, which significantly boosts EP approval chances.

To simplify the process and avoid costly mistakes, work with professionals who understand Singapore’s work pass landscape inside and out. Connect with https://employmentpassapplication.sg/ today for expert support with Employment Pass applications, COMPASS scoring, and FCF compliance.