Regulatory Framework for Hiring of Freelancers

Mr Patrick Tay Teck Guan asked the Deputy Prime Minister and Minister for Manpower what is being done to assist and fund professional freelancers such as those in the creative industry, trainers and tourist guides to undergo training, upgrading and development to take them through times of economic uncertainties.

Mr Patrick Tay Teck Guan asked the Deputy Prime Minister and Minister for Manpower (a) whether there is any regulatory framework for freelancers (who are independent contractors) to pursue late payment of their fees; and (b) whether the Ministry will consider having legislation and dispute resolution mechanisms to protect the rights and interests of freelancers.

BG [NS] Tan Chuan-Jin (for the Deputy Prime Minister and Minister for Manpower): Mr Speaker, Sir, may I take Question Nos 14 and 15 together, please?

Mr Speaker: Yes, please.

BG [NS] Tan Chuan-Jin: Providing Singaporeans with good employment opportunities is a responsibility we take very seriously. Helping Singaporeans to remain employable is also part of this responsibility. Sir, in this respect, our Continuing Education and Training (CET) framework has been set up to help Singaporeans improve themselves and to help them to remain employable. Our CET system has been enhanced in recent years to better support both company-sponsored and self-initiated training. This includes employees and freelancers in emerging industries, such as creative services and adult training.

Currently, course fee subsidies from WDA range from 70%-90% for locals. In addition, Singaporeans who attain full qualifications, such as a Workforce Skills Qualification (WSQ) Certificate or Diploma, are eligible for the CET Qualification Award (CQA) of up to $1,000. WDA has also put in place more than 30 WSQ frameworks in various industries, including the Creative Industry, Tourism and Training and Adult Education sectors. More details on these WSQ frameworks can be found on the WDA website and we welcome individuals to take up courses at the CET Centres.

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There are also sector-specific programmes in place for training and development. For example, in the Creative Industry, the National Arts Council (NAC) has a variety of programmes that cater to arts professionals at different levels, including freelancers. These programmes include grants for professional development, scholarships for arts professionals, and development of training providers to meet the manpower needs of the industry. WDA and NAC will also be introducing a WSQ Diploma in Arts Management in 2012 to build capabilities in managing businesses in the arts industry.

We will continue to invest more in our CET system, and build more industry-relevant and individual-centric training pathways. In this way, individuals can take better ownership of their own skills upgrading.

Mr Tay also asked about mechanisms to protect the interests of freelancers, especially with regard to fees owed to them. Freelancers can seek redress for late payment of service fees or other contractual disputes through the Small Claims Tribunal or the Subordinate Courts, depending on the claim amount and the nature of dispute.

In addition to the existing official channels, there are other complementary efforts to help freelancers. For example, MDA has been working with the industry group, the Association of Independent Producers (Singapore) or AIPRO, to establish a code of industry best practices to guide relations between companies and freelancers. The key areas included in the code are: terms of payment, contractual terms, insurance coverage and dispute mediation. The introduction of the code is targeted for end 2012, and this should prove to be helpful.

But in instances where employers attempt to disguise their employees as "freelancers", let me emphasise that they would not be absolved of their responsibilities under the law, including the Employment Act and CPF Act. Also, their employees would have recourse to the Labour Court. When such cases come to the attention of MOM, we will not hesitate to investigate and take the companies to task if they are guilty of breaching employment or other relevant laws. Therefore, MOM urges individuals who are unsure of their employment status to come forward to MOM for advice and assistance.

Mr Patrick Tay Teck Guan: Mr Speaker, Sir, I would like to thank the Minister of State for his detailed reply. I just have a supplementary question. The existing legislation, the Small Claims Act, provides for claims up to a maximum of $10,000 per individual per claim, but with the consent of both parties, up to $20,000. Would the Ministry actually consider recourse for cases where monies owing are beyond the $10,000 range? My second question is that I am happy to note that there is greater emphasis on individual-initiated training for this group of workers. But my concern is whether there will also be greater emphasis on higher level programmes. As we know, many of these employer-supported programmes support only up to Diploma level programmes.

BG [NS] Tan Chuan-Jin: Mr Speaker, Sir, I would like to thank the Member for the supplementary questions. With regard to his first feedback and suggestion, that is something that we can take on board to look at. Secondly, with regard to all our various training programmes available, we are very much open for both the industry and individuals to surface what they think would be applicable and suitable. So if there are programmes that the Member or members from the industry feel that might be relevant and helpful for those working in the industry, do surface them so that we can look at them and we will work with WDA to see whether these are implementable or not.

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Mr Ang Hin Kee (Ang Mo Kio): I thank the Minister of State for his explanation. In the case of travel tour package contracts, there is currently a standardised contract being used by travel agencies. Would the MOM roll out a standard contract for freelancers whereby the terms of the contract are fair for both the freelancers as well as the buyers? Currently, in some cases, the feeling is that the contract has been drawn up too much in favour of the buyers of the services and disadvantaged the freelancers.

BG [NS] Tan Chuan-Jin: Mr Speaker, Sir, I think we can take on this feedback and suggestion. We can look at whether we can improve the terms of their contracts.