There has been a lot of retrenchment-focused news recently, so we
decided to put together some advisories that our Ministry of Manpower has
announced for your easy reference.
In view of the high retrenchment figures this year, the Singapore Government has issued .
In March 2020, on managing excess manpower and responsible retrenchment was released that stipulated specific responsible retrenchment practices for all Singapore employers. They have taken into consideration the as the C19 pandemic has caused many companies to suffer substantial financial losses.
If your company is thinking of reducing your headcount, the Ministry of Manpower has advised the following:
- Employers should tap onto the to offset wage costs for local workers.
- – other cost-cutting measures such as part-time work, flexible work schedule, pay cuts, voluntary leave, no-pay leave, or temporary layoffs should be considered first.
- If retrenchment is inevitable, employers should . For companies adversely affected by the C19, they should work with unions (if unionized), to negotiate a retrenchment benefit package or provide a lump sum benefit of between one month and three months’ salary.
Do have a look through these documents...and if you have any questions, please reach out to us at [email protected]