Howden Whitepaper 2026
As costs rise, should Singapore employers rethink flexible work arrangements?

As costs rise, should Singapore employers rethink flexible work arrangements?

  • Rising costs are prompting debate on whether Singapore should expand flexible work arrangements to ease pressure on employers and employees.
  • Lawyers stress that FWAs must be properly structured, documented, and consistently applied, with statutory obligations like overtime and working hours still in force.
  • Flexibility works only when balanced with accountability, clear expectations, and operational needs on both sides.

As the ongoing Middle East war continues to ripple through global energy markets, Singapore has begun to feel the effects. While the direct economic impact remains limited, rising fuel prices, higher commuting costs, and increased utility bills are adding pressure on both businesses and households.

To cushion these impacts, the Government has introduced measures such as a corporate income tax rebate for businesses, alongside CDC vouchers and U-Save rebates to support households.

At the same time, there is growing discussion on whether flexible work arrangements (FWAs) could play a larger role in helping organisations and employees manage rising costs. Other markets have already begun implementing them – from four-day work week trials in the Philippines to expanded work-from-home practices across Indonesia, Malaysia, and Sydney.

As cost pressures mount, Umairah Nasir speaks to Viviene Sandhu, Co-Managing Partner, Clifford Law and Anil Lalwani, Director, DL Law Corporation to understand three key areas of consideration:

  1. With the Tripartite Guidelines on Flexible Work Arrangement Requests (TG-FWAR) in place, how should employers approach expanding flexible work arrangements, and what legal considerations should they keep in mind?
  2. If a company moves to more flexible arrangements, what are the biggest legal risks that are often overlooked?
  3. From a legal perspective, what should employees be aware of when entering or requesting flexible work arrangements?

A consistent theme across both responses is the importance of clear processes, proper documentation, and well-defined expectations in managing FWAs.

Read on to find out what they have to share.

Structure, compliance, and clarity are critical

Viviene Sandhu, Co-Managing Partner, Clifford Law begins by pointing to process as the foundation for handling FWA requests.

Under the TG-FWAR, employers are not required to approve every request, but they must properly consider them, provide written responses within the stipulated timeframe, and ensure decisions are based on reasonable business grounds.

Employers should focus on having a clear, consistent, and documented process for handling formal FWA requests, rather than feeling compelled to approve every request.

She adds: “From a legal perspective, employers should review employment contracts and policies to ensure alignment with the Employment Act, particularly on working hours and rest days.”

At the same time, obligations relating to data protection and workplace safety continue to apply, even in remote or hybrid arrangements.

Moving to legal risks, Viviene highlights a common misconception that flexibility changes statutory protections. This, she affirms, is not the case. Employees remain covered under existing laws, including overtime entitlements, and this becomes especially relevant where working hours are less visible. In fact, as she notes, without proper tracking of hours worked, employers may face overtime disputes – particularly in remote or hybrid settings where working time is less visible.

Other risks she highlights are:

  • Employees informally working longer hours without compensation, thus blurring rest days and creating potential non-compliance.
    Inconsistent application of FWAs across teams, or lack of clear business justification, which may lead to perceptions of unfairness or discrimination.
  • Poor documentation of terms and expectations, which can further complicate matters if disputes arise later.

Looking at the matter from the employee's perspective, Viviene emphasises the need for clarity and boundaries when entering into FWAs. "If an arrangement is approved, the terms should be clearly set out, particularly working hours, availability expectations, duration, and how performance will be assessed.

"Without this clarity, expectations can shift over time and lead to disputes," she adds.

She also urges that employees covered under the Employment Act should also keep records of hours worked where applicable, as statutory entitlements such as overtime and rest days continue to apply.

Wrapping up the conversation, she leaves us with two crucial reminders: that FWAs not are not guaranteed ongoing entitlements and may be reviewed or withdrawn based on business needs or performance; and while flexibility often comes with greater autonomy, it also brings greater accountability in meeting agreed deliverables and outcomes.

Push the envelope, but recognise operational limits

Anil Lalwani, Director, DL Law Corporation first situates FWAs within the post-COVID context, noting that many firms in Singapore have already adopted such arrangements, although in a more guarded manner.

He explains that the TG-FWAR builds on this trend. While employers are not obligated to accept requests, they are expected to take them seriously and give due weight.

The employer is not duty bound to accept a request but must give due consideration for it.

In his view, organisations could go further by formalising FWAs, for example by setting aside at least one day a week or a fixed number of hours. He links this to a family first approach, where employees are better able to manage responsibilities such as ageing parents and young children, which could in turn support overall wellbeing and performance.

"A happy, stress-less family likely means a better employee available to an employer. The usual concern is productivity but perhaps the markers for assessment can be changed."

At the same time, he acknowledges that flexibility may not be feasible in all industries, particularly those that require physical presence, such as IT maintenance, surveillance, or security. However, in professional services, FWA can work, provided they are aligned with court timelines and directions, and complied with judiciously.

He goes on to talk about the potential risks involved when FWAs are implementing, in the context of legal firms. While overtime issues are less common in such firms, productivity and service delivery remain key concerns, he notes. Physical presence can still play a role in ensuring work gets done efficiently, although he adds that this is evolving with increased use of video conferencing.

He also highlights practical challenges such as being unable to attend to walk-in clients, rescheduling appointments to fit employee schedules, or delays in meeting client expectations. There is also the risk of missed court deadlines or misplaced documents, as the absence of a shared physical environment may reduce visibility of tasks and obligations.

"The challenge is not meeting clients' expectations when needed, thereby resulting in delays and possible complaints."

Last, he adds: "When not everyone is in the office at the same time, it may result in distrust between employees.  The solution is obviously to work on team-building activities or meals, but 'out of sight, out of mind' challenges the notion of trust amongst employees, employers and middle managers."

From an employee standpoint, Anil stresses the need for structure and accountability when working under flexible arrangements. Employees, he says, should first understand the tasks and responsibilities that require fixed office hours and honour those commitments. "It should not be the employee’s position that he or she is asking to work less hours as compared to his peers.

"This can be addressed in the Company’s employment handbook for clarity and part of the grievance process."

Next, employees should appreciate that flexibility involves not only employees’ time, but also supervisors’ time, as expectations may not always align across both parties.

Third, employees should also ensure their FWA requests are made formally in writing, with clear parameters agreed and documented. To that effect, he adds that there should be a mechanism for performance review, noting that this may be used in assessing outcomes, including bonus decisions.

"If the FWA request is rejected, request for the reasons to be in writing and for a review of that arrangement at later time, e.g., one, three, or six months later.

Flexibility needs balance

As global uncertainty continues to influence costs and economic sentiment, flexible work arrangements are likely to remain part of the broader conversation on workplace resilience in Singapore.

However, as the legal perspectives highlight, FWAs are not a one-size-fits-all solution. Their effectiveness depends on how well they are structured, implemented, and aligned with operational needs, legal obligations, and clear expectations on both sides.

For employers and employees, the focus may therefore be less on expanding flexibility itself, and more on ensuring that when it is applied, it is done in a way that is consistent, transparent, and sustainable over the long term.


ALSO READ: Office-first, but can employees still ask for flexibility?

Follow us on Telegram and on Instagram @humanresourcesonline for all the latest HR and manpower news from around the region!

Free newsletter

Get the daily lowdown on Asia's top Human Resources stories.

We break down the big and messy topics of the day so you're updated on the most important developments in Asia's Human Resources development – for free.

subscribe now open in new window