Understanding the New Demerit Point System for Construction and Manufacturing Sectors

In an effort to strengthen workplace safety and ensure strict adherence to the Workplace Safety and Health (WSH) Act and its subsidiary legislation, the Ministry of Manpower (MOM) has introduced a comprehensive demerit point system for companies in the construction and manufacturing sectors. This initiative aims to promote a safer working environment by holding companies accountable for breaches that could jeopardize the well-being of their employees.

What Is the Demerit Point System?

Under the new system, companies are assigned demerit points based on the severity of their safety breaches. These points serve as a quantifiable measure of a company’s safety record. Each demerit point remains valid for 18 months from the date of issuance, after which it will expire unless further breaches occur.

Starting October 2023, the system—previously applicable only to the construction sector—will also cover the manufacturing sector. This expansion underscores the government’s commitment to enhancing safety standards across key industries.

How Are Demerit Points Issued?

The number of demerit points a company receives depends on the nature and gravity of the offence. Here’s how the system breaks down:

• Minor Offence (Composition Fine):

  • Demerit Points: 1
  • When Issued: On the date of the fine

• Partial Stop Work Order (SWO):

  • Demerit Points: 5
  • When Issued: On the date the partial SWO is issued

• Full Stop Work Order (SWO):

  • Demerit Points: 10
  • When Issued: On the date the full SWO is issued

• Dangerous Occurrence or Major Incident:

  • Demerit Points: 25
  • When Issued: On the date of MOM’s decision to prosecute
  • Context: For incidents leading to major injuries or the death of one person

• Severe Incident:

  • Demerit Points: 50
  • When Issued: For prosecutions related to accidents that resulted in the death of more than one person

It is important to note that for companies operating multiple workplaces, the demerit points from each location are aggregated. This means a single company’s overall safety performance is assessed on the total points accumulated across all its sites.

Penalties and Debarment

Accumulating a minimum of 25 demerit points within an 18-month period triggers immediate debarment from employing migrant workers. This means that any application for work passes related to migrant workers will be automatically rejected by MOM. The severity of the penalty increases with the number of points accumulated, affecting both the hiring of new workers and the renewal of existing work passes.

Below is a summary of the debarment phases based on the total demerit points:

The tiered system not only penalizes repeat or severe offenders more harshly but also serves as a strong deterrent against complacency in workplace safety practices.

Impact on the Construction and Manufacturing Sectors

The introduction and expansion of this demerit point system reflect MOM’s proactive approach to enforcing safety standards across industries. Companies in both the construction and manufacturing sectors are now under increased scrutiny, and maintaining a clean safety record has become more critical than ever. This system is expected to lead to:

• Enhanced Safety Compliance: Companies are likely to adopt stricter safety measures to avoid the costly penalties associated with high demerit points.
• Improved Workplace Environment: With a focus on reducing accidents and harmful incidents, employees will benefit from safer working conditions.
• Industry-wide Accountability: The aggregation of demerit points across all workplaces under a single company ensures that even if one site is compliant, a breach at another can affect the overall safety standing.

Staying Informed

For companies and industry stakeholders, keeping abreast of their demerit point status is crucial. MOM provides an online list of companies with demerit points, which serves as a transparent record for monitoring safety compliance across the sectors.

Conclusion

The new demerit point system marks a significant step forward in ensuring workplace safety within Singapore’s construction and manufacturing sectors. By quantifying safety breaches and enforcing strict debarment penalties, MOM aims to cultivate a culture of accountability and continuous improvement. Companies that prioritize safety not only protect their workforce but also enhance their reputation and operational integrity in a competitive market.

With the system’s expansion set to take effect from October 2023, now is the time for companies to reassess and strengthen their safety protocols. Embracing these changes will be key to fostering a safer, more resilient working environment for everyone involved.