Will the Workplace Fairness Act make me buy Employment Practices Liability insurance?

The Answer in 60 Seconds The Workplace Fairness Act 2025 was passed in two parts — the substantive first Bill on 8 January 2025 (assented 3 February 2025) and the Workplace Fairness (Dispute Resolution) Bill on 4 November 2025. The Act takes effect at end-2027, per TAFEP. It creates a statutory cause of action for employment discrimination on 11 protected characteristics, with claims of up to S$250,000 heard at the Employment Claims Tribunal. Employers with fewer than 25 employees are exempted for the first 5 years.

The Sourced Detail

Workplace fairness in Singapore was previously governed only by the non-binding Tripartite Guidelines on Fair Employment Practices (TGFEP). The Workplace Fairness Act puts statutory teeth into the regime.

The two-Bill structure

First Bill (substantive rights and obligations). Passed 8 January 2025; assented by the President 3 February 2025; published in the Workplace Fairness Act 2025 (No. 8 of 2025) on SSO. This Bill defines protected characteristics, prohibited employment decisions, and the grievance-handling obligation.

Second Bill (Dispute Resolution). Passed 4 November 2025. The Workplace Fairness (Dispute Resolution) Bill establishes the formal process for employees or individuals to file workplace discrimination claims against an employer, with safeguards to deter frivolous and vexatious claims (see MOM press release of 14 October 2025 – Workplace Fairness (Dispute Resolution) Bill factsheet).

Both Bills together comprise the Workplace Fairness Act 2025, expected to come into force at the end of 2027.

The 11 protected characteristics

Per section 8 of the Workplace Fairness Act (and confirmed in the Helmsman Law summary):

  1. Age
  2. Nationality
  3. Sex (sex assigned at birth or post-reassignment; not including sexual orientation or gender identity)
  4. Marital status
  5. Pregnancy
  6. Caregiving responsibilities
  7. Race
  8. Religion
  9. Language ability
  10. Disability
  11. Mental health condition

What's prohibited

Adverse employment decisions made on the ground of a protected characteristic, at any stage of employment — hiring, performance review, training, promotion, pay, dismissal — are prohibited. Specific exceptions apply (genuine job requirements, age preferences, pre-existing affirmative-action arrangements). Job advertisements that explicitly or implicitly reference protected characteristics as requirements are also prohibited.

Employers must establish a written grievance-handling process, per section 27 of the WFA, and protect employee confidentiality. Retaliation against complainants is separately prohibited.

Who is covered

Per the Workplace Fairness Act 2025 (No. 8 of 2025):

  • Employers with 25 or more employees (entity-level, not group-level) — fully covered.
  • Employers with fewer than 25 employees — exempted from most provisions for the first 5 years after commencement, except for the fair-consideration provisions on job advertisements and Work Pass applications.
  • The exemption is reviewable after 5 years.

Enforcement and penalties

Per the Workplace Fairness Act 2025 (No. 8 of 2025) and the MOM 14 October 2025 factsheet on the Workplace Fairness (Dispute Resolution) Bill:

Civil contraventions:

  • Administrative penalty notices issued by the Commissioner.
  • Mandatory remedial action.

Serious civil contraventions:

  • With public prosecutor consent, the Commissioner may bring an action in court.
  • Civil penalty for body corporates: up to S$50,000 for the first order; up to S$250,000 for subsequent orders.

Private claims: Per the MOM 14 October 2025 factsheet on the Workplace Fairness (Dispute Resolution) Bill and the Workplace Fairness (Dispute Resolution) Bill (Bill No. 17/2025), an aggrieved employee can bring a workplace fairness claim:

  1. Through the employer's internal grievance process.
  2. Mandatory mediation request to the Commissioner for Workplace Fairness.
  3. If mediation fails, claim filed at the Employment Claims Tribunal (ECT) for amounts up to S$250,000, or in the General Division of the High Court for amounts above S$250,000.

The S$250,000 ECT cap is a major increase from the existing ECT cap of S$30,000 for ordinary employment disputes.

Implications for the EPLI market

Employment Practices Liability Insurance (EPLI) — coverage for claims by employees against employers for wrongful termination, discrimination, harassment — is an established but historically optional product line in Singapore. Demand has been muted because the underlying statutory exposure was limited.

Under the WFA, the calculus changes:

Statutory cause of action. Pre-WFA, employees suing for discrimination relied on contract or tort claims. Post-WFA, there is a clear statutory cause of action with an inexpensive forum (ECT) and a high ceiling (S$250,000 at ECT, uncapped at High Court).

Mandatory mediation creates evidence. Even where claims fail, defence costs are real.

Personal liability for officers. Per DLA Piper, officers of a body corporate who consented to or connived at an offence can be personally liable. This sits squarely within the territory traditionally covered by Directors & Officers (D&O) insurance.

EPLI wordings vary considerably. Coverage may extend to:

  • Defence costs at ECT and in High Court.
  • Settlement amounts and judgments.
  • Civil penalties (where insurable).
  • Investigation costs.

Because commencement is end-2027, there is approximately 18 months from May 2026 to put policies and processes in place.

What This Means for Your Business

If you have 25+ employees, the WFA will land on you. Your grievance-handling policy needs to be written, communicated and operationalised before end-2027. Your hiring documentation needs to remove discriminatory language. Your dismissal templates need to document objective rationale.

If you have <25 employees, you're exempted from most of the WFA in the first 5 years — but not from the fair-consideration rules on job ads and Work Pass applications. You also remain bound by the TGFEP.

Either way, the cost of getting it wrong rises sharply at end-2027. A single ECT claim ending in mediation could cost S$15,000–S$50,000 in legal fees even if it ultimately fails.

Questions to Ask Your Adviser

  1. Given my headcount and growth path, when will I cross the 25-employee threshold?
  2. Does my current D&O extend to employment-practices claims, or do I need standalone EPLI?
  3. What is the typical premium range for EPLI for an SME of my size and industry?
  4. How does mediation cost interact with the policy retention/excess?
  5. Are civil penalties under the WFA insurable under my proposed wording, or excluded?

Related Information

Published 3 May 2026. Source verified 3 May 2026. COVA is an introducer under MAS Notice FAA-N02. We do not recommend insurance products. We provide factual information sourced from primary regulators and route you to a licensed IFA who can match a policy to your specific situation.