Government of Singapore : Cleaning businesses to be licensed within five months of the EPH (Amendment) Bill coming into force

New licensing regime will level the playing field by imposing higher standards of employment across the cleaning industry and lead to more professional and reliable services

JOINT NEWS RELEASE BETWEEN MOM, WDA AND NEA

Singapore, 24 January 2014 - The Environmental Public Health (EPH) Amendment Bill was introduced in Parliament on 20 January 2014. Under the provisions of the bill, cleaning businesses in Singapore will have to be licensed within five months of the provisions coming into force, which is expected to be in April 2014.

2          The licensing regime will require cleaning businesses to have mandatory written employment contracts, to provide training and to implement the Progressive Wage Model (PWM) in order to ensure that cleaners receive wages that commensurate with their skills, training and productivity. An estimated 55,000 resident cleaners will benefit from these requirements.

Licensing Requirements

3          Businesses offering cleaning services at premises or any public places will need to be licensed with the exception of those that offer specialised cleaning works. [Refer to Annex A for the exemption list and Annex B for the proposed licensing requirements.] Cleaning businesses will have to be registered with the Accounting and Corporate Regulatory Authority (ACRA) Singapore or the Registry of Societies (ROS), and demonstrate relevant experience. New start-ups may provide documentation to indicate employment of at least one employee with a minimum of two years of practical experience in supervising cleaning work, or has attended the requisite Environmental Cleaning (EC) Singapore Workforce Skills Qualifications (WSQ) training modules. [Refer to Annex C for the EC WSQ framework.]

1. Progressive Wage Model

4          The Commissioner for Labour (COL) will specify the level of progressive wages based on the recommendations of the Tripartite Cluster for Cleaners (TCC). More details to help cleaning businesses comply with this licensing condition will be released after the Bill is passed. [Refer to Annex D for information about the TCC and further information on the proposed licensing condition relating to progressive wages.]

5          Since November 2012, companies who have enrolled in the voluntary Enhanced Clean Mark Accreditation Scheme have been required to pay progressive wages to their cleaners based on the PWM recommended by the TCC. This requirement will become compulsory on all companies in order to level the playing field.

6          To be licensed, businesses will have to factor in the PWM when tendering for new contracts or renewing existing contracts, and pay resident cleaners no less than what is reflected in the PWM. For existing service contracts (i.e. awarded before the provisions in the EPH (Amendment) Bill come into force), businesses will have until 1 September 2015 to transit to the new regime. Businesses will, however, be encouraged to start paying progressive wages earlier.

7          With the PWM requirement incorporated in the licensing regime, resident cleaners from all cleaning businesses can have the assurance of a pathway to higher wages as they become better skilled, more productive and take on higher responsibilities. Service buyers and consumers stand to enjoy better cleaning services and standards. Cleaning businesses will have to make the necessary improvements to employment standards to attract and retain the manpower they need in the current tight labour market.

1. Training

8          Cleaning businesses should have at least 50 per cent of their staff trained in at least one module within the Singapore Workforce Development Agency's (WDA) WSQ EC framework at the point of first application. At the time of licence renewal, 100 per cent of their staff should be trained. Cleaning businesses will be advised to continue to send their staff for training to build a better skilled workforce and boost overall standards and capabilities necessary to sustain higher wages in the cleaning industry.

9          Mr Ng Cher Pong, Chief Executive of WDA said, "In preparation for the licensing of cleaning contractors, WDA has been working with our training partners since mid-2012 to ramp up training capacities. Funding is also available to support the training of resident cleaners. The Government has set aside a $9.8 million grant to train 33,000 local cleaners in EC WSQ over two years. We expect training demand to intensify in the coming months and would urge cleaning contractors not to delay in sending their workers for training."

Penalties for Non-compliant Cleaning Businesses

10        Under the provisions of the Bill, cleaning businesses found operating without a valid licence will be liable to a maximum fine of $10,000 or up to 12 months imprisonment or both and $1,000 every day for continuing offences. Service buyers who engage unlicensed cleaning businesses will also be liable to a maximum fine of $10,000 and $1,000 every day for continuing offences. [Refer to Annex E for details on the proposed penalty regime.] Licensed cleaning businesses found to be in breach of licensing conditions may also face a maximum financial penalty of $5,000 and may risk having their licence suspended or revoked. [Refer to Annex F for details on the proposed conditions of licence.]

11        NEA's Chief Executive Officer, Ronnie Tay said, "The cleaning industry is large and fragmented, and characterised by cheap-sourcing practices which have discouraged wage, skills and productivity improvements. High attrition of cleaners also makes it difficult to attract and retain staff. The new licensing regime will incentivise businesses to improve standards and productivity, and also help to enhance the professionalism and image of the cleaning industry."

Source: MOM Comprehensive Labour Force Survey, 2012. Figures for 2013 are not yet available.

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For more information, please contact

Call Centre: 1800-CALL NEA (1800-2255 632)
Email: [e-mail]

Annex A

Specialised Cleaning Businesses to be Exempted from Licensing

Businesses that deal in the following types of specialised cleaning will be exempted from the mandatory licensing regime.

S/N	Cleaning Work	Description
1	Facade	Exterior of any building/facility including Roof, Exterior Walls/ Windows, Glass Panes, etc.; and Large Structures such as Fountains, Statues, Attractions (e.g. SG Flyer), etc.
2	Pipelines and Utility Fixtures	Pipelines such as Water / Gas Pipes, Drainage Pipes, Sewage Pipes, Exhaust Ducts, Air Ducts, Water Tanks, etc.
3	Construction Site	Cleanup of debris, waste, etc.
4	Clean Room	Laboratories / Facilities with highly controlled conditions, including sterile conditions.
5	Hazardous / Bio-Hazardous Areas	Laboratories / Facilities / Premises exposed to hazardous materials, including Quarantine Areas, Crime Scene Cleanup, Chemical Plants, Heavy Industries, etc.
6	Animal Enclosures	Animal Enclosures, Cages, Compounds, etc.
7	Swimming Pool/ Aquariums	Swimming Pools, Jacuzzis, Spa, Commercial Aquariums, Deep Sea Aquariums, etc.
8	Domestic Cleaning	Full-Time Domestic Help, Part-Time Housecleaning, One-Off Service House Cleaning

Annex B

Proposed Licensing Requirements

1)    Business Registration

• Registered with the Accounting and Corporate Regulatory Authority (ACRA) or the Registry of Societies (ROS)

2)    Track Record of Cleaning Projects

• At least one cleaning contract on-hand, or completed in the 12 months preceding the licence application.

OR

Experienced/ Trained Personnel

(In the case where applicant does not satisfy track record requirement)

a)    At least one supervisory staff with two years of relevant experience in cleaning work, OR

b)    Attended modules as prescribed by the Director-General Public Health (DGPH)

i)      Supervise Service Operations

ii)     Demonstrate and Apply Understanding of Cleaning Methods and Processes

3)    Progressive Wage Plan

• To submit a progressive wage plan for resident cleaners employed, specifying the basic wage for each class of cleaners that is conforming to the wage levels specified by the Commissioner for Labour (COL), MOM, which should be no less than what is reflected in the Progressive Wage Model recommended by the Tripartite Cluster for Cleaners.

4)    Training for Cleaning Workforce

• Cleaners to attend at least 1 module under the WSQ EC Framework.
• Cleaning businesses may send their cleaners for the basic cleaning module "Demonstrate Understanding of the Local Cleaning Industry Environment".
• NEA may recognise other modules (not under the WSQ EC Framework) on a case-by-case basis.

Note: Requirement to be implemented in phrases:

Application Period	Training Compliance (%)
At the point of licence application	50
By 1st licence renewal	100

 Annex C

Proposed Training Requirement: Environmental Cleaning Workforce Skills Qualifications (WSQ)

Introduction

Since late 2009, WDA has been working with key industry stakeholders to develop the Environmental Cleaning (EC) WSQ framework to better serve the training needs of the industry and enhance its professionalism.

From 1 July 2010, the Environmental Cleaning WSQ is ready to offer the cleaning industry skills upgrading pathways for their workers that will help them boost performance and productivity.  Workers in the cleaning industry can look forward to taking up industry recognised training to raise their skills and capabilities that will enhance their employability.

The EC WSQ certifications will be the main avenue through which businesses can meet the training requirements under NEA's accreditation scheme for the cleaning industry. It has replaced the Cleaning National Skills Recognition System (NSRS) with effect from 1 July 2010.

Overview of the Environmental Cleaning WSQ

The framework caters to the training of cleaning crew, stewards and supervisors in two sub-sectors namely:

• Commercial and Private Residential Cleaning
• Public Cleaning

It offers 48 modules grouped under three levels of qualifications namely, Certificate, Higher Certificate and Advanced Certificate. The progression pathway provided in the framework is as shown in Figure 1 below.

Figure 1: Progression Pathway under EC WSQ Framework

Environmental Cleaning WSQ Courses 

Course	Suitable for
WSQ Certificate in Environmental Cleaning 4 Core + 2 Elective Units	Competencies at this level aim to equip cleaning professionals with the skills to perform basic cleaning activities as a cleaning crew.
WSQ Higher Certificate in Environmental Cleaning 4 Core + 3 Elective Units	Competencies at this level of qualification aim to equip cleaning professionals looking to advance their skills with in-depth training in specialised cleaning, and soft skills required as a cleaning steward to lead small teams of cleaning crew.
WSQ Advanced Certificate in Environmental  Cleaning 6 Core + 2 Elective Units	Competencies at this level of qualification aim to equip cleaning professionals earmarked for leadership positions such as cleaning supervisors to manage multiple teams.

Environmental Cleaning WSQ Approved Training Organisations (ATOs)

Environmental Cleaning WSQ courses have been rolled out progressively since June 2010.  Interested participants can check with the following approved training organisations for more information on course fees, schedule and funding support:

• NTUC LearningHub Pte Ltd
• Center for Competency-Based Learning and Development Pte Ltd
• U-Training Centre Pte Ltd
• ST Electronics (e- services) Pte Ltd - Centre for SHEQ
• Training Masters Workforce Institute Pte Ltd

Training Provider	Contact details
NTUC LearningHub Pte Ltd	80 Jurong East Street 21, e2i #02-03, Singapore 609607 Tel: [phone], Fax: [phone] Email: [e-mail] Website: www.ntuclearninghub.com
Center for Competency-Based Learning and Development Pte Ltd	6 Harper Road, #06-01, Leong Huat Building, Singapore 369674 Tel: [phone], Fax: [phone] Email: [e-mail] Website: www.cbld-center.com
U-Training Centre Pte Ltd	33 Ubi Ave 3 #04-15, Singapore 408868 Tel: [phone], Fax: [phone] Email: [e-mail] Website: www.u-training.com.sg
ST Electronics (e-Services) Pte Ltd - Centre for SHEQ	1003 Bukit Merah Central, #01-01, Inno Centre Singapore 159836 Tel: [phone] 5042, Fax [phone] Email: [e-mail]/ [e-mail] Website: www.sheqcomat.com.sg
Training Masters Workforce Institute Pte Ltd	10 Arumugan Road, #07-02, Singapore 409957 Tel: [phone], Fax: [phone] Email: [e-mail] Website: www.trainingmasters.com.sg

Assessment Only Pathway as Qualifying Criteria

To help employers meet the challenge of having to release workers for training, WDA has introduced the Assessment Only Pathway (AOP), aimed at allowing cleaners to obtain their Environmental Cleaning (EC) Workforce Skills Qualifications (WSQ) certification without having to attend classroom training, but just assessment. These cleaners would either have basic cleaning qualifications or have a number of years of relevant working experience.

Cleaners who are interested in the AOP would be screened before they are allowed to enroll on the AOP. Those who are eligible for AOP would be able to attempt the assessment directly. Participants taking AOP will also able to enjoy up to 90% funding for the assessment fee.

Qualified cleaners will receive an EC WSQ Certificate (Certificate, Higher Certificate and Advanced Certificate) for completion of full programme, or a Statement of Attainment (SOA) for each completed module.

Annex D

Progressive Wage Model

The progressive wage requirement that will be included as a licensing condition for cleaning businesses is a targeted intervention to address cheap sourcing in the cleaning sector. Cheap-sourcing prevents the market from working well to translate training, standards and productivity into improved wages.

When the licensing regime comes into operation, all licensed cleaning businesses will be required to pay their resident cleaners progressive wages, as specified by the Commissioner for Labour (COL), based on the Progressive Wage Model (PWM) recommended by the Tripartite Cluster for Cleaners (TCC). Cleaners can look forward to better wages that are commensurate with higher training, standards and productivity.  It will contribute to a more motivated and competent cleaning workforce that can deliver better service and standards to buyers of cleaning services. Cleaning businesses will also be better able to attract and retain resident cleaners in the tight labour market.

Businesses seeking to be licensed are required to submit their business' progressive wage plan to demonstrate that they have in place a structure that enables their cleaners to upgrade and progress to their next respective wage levels. Businesses' wage plans should be aligned with the sections of the TCC's PWM that apply to the work done by their cleaners and reflect wages no less than what is on the TCC's PWM. Once licensed, cleaning businesses must also ensure that they pay their resident cleaners according to the submitted progressive wage plan.

Tripartite Cluster for Cleaners (TCC)

The TCC was set up to develop progressive wage scales for cleaners. It is co-chaired by the National Trades Union Congress and the Singapore National Employers Federation, and comprises tripartite representatives from the Government, the unions, employers (i.e. cleaning service providers) as well as industry stakeholders such as buyers of cleaning services.

The TCC released its PWM for cleaners on 18 October 2012 and has been periodically reviewing its recommendations. The TCC's PWM comprises three wage ladders for three broad categories of cleaning jobs. These three categories account for the most common types of cleaning jobs, and are based on the classification of cleaning sub-sectors used in NEA's accreditation scheme for cleaning businesses.

(i)            Group 1: Office and commercial buildings

(ii)           Group 2: Food and beverage (F&B) establishments

(iii)          Group 3: Conservancy sector

In addition to a starting wage level, each wage ladder comprises a series of further wage points to provide a pathway for cleaners to progress to higher wages as they become better skilled, more productive or take on higher responsibilities. The progressive wage model is depicted in the below diagram.

The cleaning sector is prone to headcount-based contracting and contracts are typically awarded based solely on price considerations. This can result in cleaning businesses compromising on wages and employment standards of cleaners in order to be price competitive.

Diagram: The Progressive Wage Model Developed by the Tripartite Cluster for Cleaners

Annex E

Proposed Penalty Regime as in EPH (Amendment) Bill

S/N	Type of Offence	Penalties
1	Carrying on a cleaning business without a licence	Maximum fine of $10,000, or imprisonment for a term not exceeding 12 months, or both For continuing offences, a further fine not exceeding $1,000 for every day or part thereof during which the offence continues after conviction
2	Offence for person to engage unlicensed persons	Maximum fine of $10,000 For continuing offences, a further fine not exceeding $1,000 for every day or part thereof during which the offence continues after conviction
3	False declaration	Maximum fine of $5,000 For subsequent convictions, maximum fine of $10,000 or imprisonment for a term not exceeding 3 months, or both
4	Failure to comply with any licence condition	The Director-General may impose a financial penalty of such amount, not exceeding $5,000, as the Director-General thinks fit
5	Failure to comply with any requirement under section 80M (Monitoring Powers)	Maximum fine of $5,000

Annex F

Proposed Conditions of Licence

1)        Keep and retain records of cleaning business

2)        Ensure cleaners are trained and to keep training records

3)        Written Contract of Service

4)        Progressive wage for resident cleaners

5)        Pay slip for cleaners

6)        Maintain experienced / trained personnel pre-requisite