How SMEs Can Create Harmonious Workplaces
Key insights from the dialogue on Creating Harmonious Workplaces: Why Grievance Handling Matters under the Workplace Fairness Act
10 Sep 2025 Articles Grievance handling Tripartite Guidelines on Fair Employment Practices Best practices
In this article, we bring you key insights from the dialogue on Creating Harmonious Workplaces: Why Grievance Handling Matters under the Workplace Fairness Act at Tripartite Connect 2025: Progressive Workplaces for SMEs held on 24 Jul 20251, focusing on how SMEs can prepare for the Workplace Fairness Act by adopting simple, effective grievance handling practices that build trust, enhance retention, and foster harmonious workplaces.
Why Implementing a Fair Grievance Handling Process Matters
Under the upcoming Workplace Fairness Act (WFA), all businesses with more than 25 employees will be required to establish a grievance handling process when the Act is implemented in 2026 / 2027.
Today, employers in Singapore generally recognise the value of having a fair and trusted way for employees to raise concerns, with 6 in 10 firms already having formal procedures to manage workplace discrimination. Beyond meeting legal requirements, fair and consistent grievance handling strengthens workplace harmony, which supports long-term business resilience.
Employees are the heart of any business, and their well-being directly shapes morale and productivity and in turn, customer experience and satisfaction. Unresolved workplace grievances not only weaken the organisation from within due to erosion of trust but also undermine its growth and reputation.
Without a proper process, what may begin as a small misunderstanding can escalate into serious conflicts — from disputes over workplace arrangements to more severe cases of discrimination or harassment. Grievances can also escalate into costly disruptions, draining resources through high turnover, disrupting daily operations and hindering growth.
For SMEs, where teams are close-knit and retention is critical, the risks may be even higher. Addressing issues early and fairly improves retention and builds a motivated, stable workforce and reduces recruitment and training costs – laying the foundation for sustainable growth and competitiveness.
How SMEs can put in place a Grievance Handling Process
Implementing a fair and effective grievance process need not be complicated. SMEs can start by focusing on the following key areas:
1. Capability Building
Equip supervisors, HR, and line managers with the skills to identify and address grievances early. SMEs may tap into training and role-play workshops to prepare teams for real-life situations. Providing managers with resources such as a checklist or playbook helps them act quickly, fairly, and consistently when issues arise.
2. Communication
One of the simplest ways to put in place a grievance process and ensure employees know how to use it is by including it in accessible platforms such as employee handbooks. SMEs may also provide multiple accessible channels to raise grievances — for example through direct supervisors, HR, or anonymous hotlines — and ensuring these options are communicated clearly and easy to use. Having regular staff reminders build awareness, while confidentiality and seriousness in handling cases build credibility.
3. Confidence and Trust
Resolve issues properly through active listening, thorough investigation, and basing decisions on facts, not assumptions. Protecting employees from retaliation when they raise grievances — especially during grievance investigations — creates a safe environment where employees can raise concerns without fear.
Regardless of company size, leadership sets the tone for how grievances are handled. The “tone from the top” establishes the culture of organisational values, while fairness and transparency in processes reassure employees that issues will be addressed in a fair and structured way. Leaders should empower and train their teams while modelling respectful behaviour.
For SMEs, smaller size can be an advantage. Close working relationships allow grievances to be addressed swiftly and empathetically. For example, SME leaders may step in personally when necessary to resolve grievances by listening carefully, analysing facts, and working collaboratively towards solutions to demonstrate commitment to resolving issues.
Conclusion: A Small Step for Big Gains
Grievance handling is more than resolving disputes. Done well, it can uncover areas for improvement in policies and processes, benefiting both employees and the business.
Building trust between employees, supervisors, HR and management requires a culture where concerns are addressed fairly, consistently, and without fear of retaliation. Proper grievance handling becomes a pillar for fair employment practices —strengthening workplace harmony, and supporting business growth.
SMEs can take the first step by implementing a grievance handling process that is simple, accessible, and trusted, creating a workplace where employees feel valued and businesses thrive.
1This event was jointly organised by the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) and the Workplace Safety and Health Council (WSH Council), under the Tripartite Alliance Limited (TAL). Dialogue II: Creating Harmonious Workplaces: Why Grievance Handling Matters under the Workplace Fairness Act was moderated by Ms Faith Li, General Manager, Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP). Esteemed panellists include: (i) Mr Charles Ho Nai Chuen, Managing Director, On Cheong Company Pte Ltd; (ii) Mr Tan Dengqi Director, Call Lade Enterprises Pte Ltd; (iii) Ms Aileen Tan, Group Chief People and Sustainability Officer, Singtel Group & IHRP Master Professional and (iv) Ms Yeo Wan Ling, Assistant Secretary-General, NTUC, Director of U SME and U Women and Family, NTUC, Executive Secretary of National Transport Workers’ Union.