Mandatory retrenchment notifications in effect 1 January

by HRD28 Nov 2016
The Ministry of Manpower (MOM) recently issued an advisory that makes retrenchment notifications to the government agency mandatory beginning 1 January 2017.

Under the Workforce Singapore Agency Act, companies employing 10 or more employees are required to report retrenchment exercises to MOM five days after affected employees have been notified, if five or more employees are retrenched within a six-month period.

Failure to do so is considered an offence and companies found guilty are liable to fines not exceeding $5,000 among other penalties.

MOM defined retrenchments as “dismissal on the ground of redundancy or by reason of any reorganisation of the employer’s profession, business, trade or work” and covers permanent employees and contract workers with full contracts of at least six months. 

“These notifications will provide more complete and timely retrenchment information, to better enable Workforce Singapore (WSG) and the Taskforce for Responsible Retrenchment and Employment Facilitation to assist retrenched local employees find alternative employment and relevant training to enhance their employability,” said MOM in their statement.

“Briefings are available for employers to familiarise themselves with the new requirement. Employers can indicate their interest with the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) at query-prog@tafep.sg,” they added.

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