How to Build an FWA Policy for SMEs in Singapore

With Singapore’s Tripartite Guidelines on Flexible Work Arrangement (FWA) Requests officially in effect from 1 December 2024, all employers, including SMEs, must adopt a formal process for handling employee flexibility requests.

These guidelines are mandatory, and while they’re not law, they are enforceable through TAFEP and reflect Singapore’s evolving expectations around fair and progressive workplace practices.

If you’re running a small or medium business in Singapore, here’s how to build a simple, clear, and compliant FWA policy that works for both your team operations and your payroll and accounting services.

What Is an FWA Policy?

An FWA (Flexible Work Arrangement) policy is a written document that outlines:

• What types of flexibility your business offers
  
• Who can apply
  
• How employees should submit a request
  
• How the request will be evaluated and documented
  

In 2025, all employees who have completed their probation period are eligible to make FWA requests — and all employers are required to have a fair, consistent process in place.

Step 1: Define What Flexibility You Can Support

There’s no requirement to offer all types of FWAs. Choose what works for your business. The Tripartite Guidelines define three categories:

• Flexi-place: Remote work, hybrid arrangements
  
• Flexi-time: Staggered start/end times, compressed workweeks
  
• Flexi-load: Part-time roles, reduced workload, job sharing
  

You only need to offer what is reasonable and operationally feasible — but you must allow employees to request it and consider those requests fairly.

Step 2: Set Eligibility Criteria (Clearly but Fairly)

Define who can apply:

• Must the employee be full-time or part-time?
  
• Should they have passed probation?
  
• Is the role suitable for flexible work?
  

These filters must be tied to business and operational needs, not personal preferences.

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Step 3: Create a Request Submission Process

Under the 2025 guidelines:

• Employees must submit their request in writing (email or form)
  
• The request should include:
  
  • Type of flexibility
    
  • Proposed start date and duration
    
  • Reason and how it supports their work
    

You can include a simple template or form to standardise submissions.

Step 4: Outline How Requests Will Be Reviewed

Your policy should explain:

• Who reviews the request (e.g. direct supervisor, HR, or business owner)
  
• What factors will be considered:
  
  • Impact on team delivery
    
  • Client or customer needs
    
  • Operational coverage
    
  • Security or IT constraints
    
• How long it will take: You must respond within two months per the Tripartite Guidelines
  

Step 5: Define Approval, Duration, and Review Terms

Be clear about:

• Whether the FWA is a trial or permanent
  
• How often it will be reviewed or renewed (e.g. every 6 months)
  
• Whether and how it can be revised or withdrawn if business needs change
  

This protects both the employee and employer in case the arrangement stops working.

Step 6: Align Your Policy with Payroll & HR Systems

If someone moves to a part-time load or staggered schedule, your policy should state how:

• Payroll and CPF contributions will be adjusted
  
• Leave entitlements and working hours will be calculated
  
• Performance expectations will be tracked
  

This ensures internal consistency and reduces compliance risks.

Step 7: Communicate the Policy Internally

Once your FWA policy is written:

• Add it to your employee handbook or onboarding documents
  
• Share it in a short team briefing
  
• Train supervisors or managers on how to review and respond to requests
  

Even a lean SME team benefits from clarity and consistency.

Sample Outline: FWA Policy for SMEs

Here’s a basic structure you can follow:

markdown

Copy code

1. Introduction & Purpose  
2. Types of FWAs Supported  
3. Eligibility Criteria  
4. Request Submission Guidelines  
5. Evaluation Process  
6. Response Timeframe (within 2 months)  
7. Approval Terms and Duration  
8. Review and Adjustment Process  
9. Payroll & HR Adjustments  
10. Contact for Queries

Summary

Singapore’s FWA Guidelines in 2025 represent a shift in how work is structured — not just in big companies, but across the entire SME landscape. Your business doesn’t need to offer everything — but it does need to listen, respond fairly, and document its process.

A good FWA policy protects you, supports your employees, and keeps your business compliant. And as flexible work becomes the norm, it could also be a major advantage in hiring and retaining talent.

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Here are some articles you might find helpful:

Tripartite 2025 Guidelines for Flexible Work Requests in Singapore

Singapore’s Paternity Leave: What Employers and SMEs Need to Know

Performance Review Software: A Buyer’s Guide for SMEs in Singapore