Navigating Retrenchments: What every worker needs to know

From F&B to hospitality and aviation, companies in Singapore have been cutting headcounts in a bid to cope with challenges ranging from tough competition to global economic uncertainty.

Concerned that you may be next? Not to worry, NTUC’s got your back. 

If you’re an NTUC member in a unionised company, you can always count on your union to negotiate a fair deal. 

But what if you’re an NTUC member working in a non-unionised company, or perhaps not a member at all? Here are some helpful tips from NTUC PME’s Retrenchment Guide to assist you in navigating a cutback.

Before a retrenchment: Look out for warning signs

It is unlikely that your employer has decided to cut workers overnight. There are usually warning signs weeks or months earlier.

Look out for clues, such as an inability to pay your salary or declining revenue.

If something seems off, you can refer to the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment to understand what your employer should consider when reducing their workforce. It provides structured guidelines on what employers can do when they embark on a retrenchment exercise.

NTUC members in non-unionised companies can seek advice from an NTUC PME consultant by booking an e-appointment on their website. Alternatively, you can contact the Tripartite Alliance for Dispute Management @ National Trades Union Congress (TADM@NTUC) via NTUC’s Workplace Advisory Service for assistance. 

During the retrenchment: What to do when you receive the notification

Unfortunately, it seems that your company has exhausted all options and job cuts are now inevitable. Chances are, they will be issuing a retrenchment notice to you soon. 

Here’s what you should do upon receiving the letter:

1. Clarify the reasons for being let go: It’s worth asking your employer if they have explored alternatives, such as redeployment or no-pay leave for a certain period. Also, make sure to check if you’ll get a retrenchment payout based on the advisory.

2. Read the notice carefully: You’ll want to clarify that all the entitlements and benefits in the severance package are in line with the tripartite advisory. If in doubt, don’t sign the letter. Instead, consider taking more time to review it. Better yet, contact NTUC PME at pme@ntuc.org.sg or reach out to an NTUC PME consultant.

3. Be clear about your entitlements: While the big retrenchment payout may be at the top of your mind, you should also focus on other crucial items, such as the notice period, annual leave, and salary payments.

Unsure if you’re getting a fair deal? If you’re an NTUC member, be sure to speak to an NTUC PME consultant or TADM@NTUC for priority assistance.

Bouncing back from retrenchment: Utilise NTUC resources

With rising retrenchment rates and fewer job openings, displaced workers like you will need more support as there might not be enough jobs to go around. 

NTUC has a range of resources to help you get back into the career game:

Job search resources

1. Visit a career centre: Drop by any of the 27 career centres run by NTUC’s e2i (Institute for Employment and Employability) for help to secure a new job. You’ll be linked to resources, such as employability workshops and career fairs.

2. Sign up for regular job alerts: Join e2i’s PMET Jobs Alert Telegram group to discover job openings and career-related events.

3. Join NTUC PME events: Check out their professional networking sessions to link up with potential employers. Reach out to them at pme@ntuc.org.sg.

Upskilling opportunities

Want your resume to be at the top of the hiring pile? You need to possess the in-demand skills that employers want. Enroll in a course at NTUC LearningHub to pick up fresh skills for the digital age, from Artificial Intelligence to Data Analytics.

NTUC members can take advantage of the Union Training Assistance Programme (UTAP) funding to subsidise course fees by up to $250 per year. There’s higher funding of $500 per year for those aged 40 and above. Best of all, you can combine your SkillsFuture Credits with UTAP and pay less than you’d expect.

Financial support

If you need cash to tide you through the job hunt, consider applying for the SkillsFuture Jobseeker Support Scheme to receive up to $6,000 over six months. Don’t forget to check out e2i’s resources to complete the job search activities needed to qualify for the scheme.

Better retrenchment outcomes for NTUC members

By now, you know that NTUC members receive better support when they are laid off. These real-life examples will illustrate how much better off workers are when NTUC steps in, and why being a member is beneficial:

Agoda

What began as an inappropriate action by Agoda on 17 September 2025 to prevent 50 retrenched employees from seeking help has evolved into a collaborative effort to support affected workers. After discussions with NTUC, the Singapore Industrial and Services Employees’ Union (SISEU), the Manpower Ministry, and the Tripartite Alliance for Fair and Progressive Employment Practices, Agoda has agreed to work with the Labour Movement to assist workers in their transition. Additionally, SISEU has confirmed that the severance packages meet industry guidelines.

Jetstar Asia

When Jetstar Asia announced its closure in June 2025, NTUC and The Singapore Manual and Mercantile Workers’ Union swiftly intervened to assist over 500 affected workers. The SMMWU negotiated for fair compensation, and collaborated with NTUC, the NTUC Aviation and Aerospace cluster, and industry partners to offer job matching, career advisory services, and financial aid. As a result, nearly 90 per cent of retrenched cabin crew and pilots have secured jobs or job interviews.

Lazada Singapore

In January 2024, Lazada Singapore announced it was releasing employees in a restructuring exercise. During early negotiations, retrenched workers were told that they would receive two weeks’ salary for every year of service. After the Food, Drinks and Allied Workers Union (FDAWU) and NTUC stepped in, affected members received an enhanced support package and a dedicated training fund.

Read the full NTUC PME Retrenchment Guide here. Are you at risk of being retrenched? Become an NTUC member today and receive comprehensive retrenchment and job search support through NTUC PME and your union.