Public Consultation on Updated Tripartite Advisory on Responsible Outsourcing Practices

5 August 2011

1. The Ministry of Manpower, on behalf of the tripartite partners, is inviting the public to give feedback on the updated Tripartite Advisory on Responsible Outsourcing Practices ("Advisory") (See Annex A). This 2011 Advisory is updated from a similar 2008 Advisory.
2. The Advisory seeks to encourage companies that outsource services such as cleaning and security ("service buyers") to take a more proactive role in ensuring that their service providers comply with employment laws and adopt good employment practices. The tripartite partners are reviewing the Advisory to ensure that the recommendations in the Advisory remain relevant and practical for service buyers to adopt.
   
   Updated Tripartite Advisory on Responsible Outsourcing Practices
3. The updated Advisory takes into account feedback gathered on outsourcing practices since the Advisory was first issued in 2008, and provides greater clarity on how workers, service buyers and service providers can benefit from adopting the guidelines. For instance, it encourages service buyers to consider factors that contribute to service quality, such as the security grading and cleaning accreditation schemes, other than relying solely on the price of a service contract.
4. Among others, the Advisory recommends that service buyers adopt the following practices:
   • Specifying in the service contracts that service providers must comply with Singapore's employment laws;
   • Awarding service contracts based on service providers' abilities to meet expected performance levels;
   • Considering factors that contribute to improved quality of service such as:
     • Provision of written employment contracts to workers,
     • Grading and accreditation levels,
     • Training of workers; and
     • Recognition of experienced workers
   • Checking that service providers are financially sound; and
   • Establishing a long-term collaborative partnerships with the service providers.
5. A public consultation document, with the Advisory, can be accessed at the REACH website over the next two weeks (5 Aug 2011 to 19 Aug 2011). The public consultation page can also be accessed on MOM website. In addition, MOM is consulting industry stakeholders, including service buyers, service providers and employees as part of the consultation exercise.