For greater support, join us as a member today. NTUC will stand by you through workplace challenges and assist you every step of the way.
Here are some useful links for your considerationA retrenchment is the termination of employment due to redundancy of the role or re-organisation of the business.1
Key reasons for retrenchments include:
1Source: Retrenchment guide for PMEs
You may reach out to the following entities for guidance:
You may also refer to the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (TAMEM) for more information.
Under TAMEM, employers should only proceed with retrenchment as a last resort after considering other possibilities such as:
If you are served with notice of retrenchment and/or a separation/settlement agreement, you should:
⚠️ Your employer should give you sufficient time to review any separation/settlement agreement and to seek advice from the appropriate channels:
*More details on retrenchment benefits can be found here.
Retrenchment benefit is not mandated by law.
You are entitled to retrenchment benefits if your employment contract, or a collective agreement which applies to you, expressly states the amount of retrenchment benefits payable.
If the amount is stated to be negotiable, for employees who are under union representation, the union could negotiate with the employer, but the outcome would depend on the employer's current circumstances.
Note: employees who are covered under Part 4 of the Employment Act (namely, workmen earning up to $4,500 and non-workmen earning up to $2,600) are not eligible for retrenchment benefits if they have served the employer for less than 2 years.
Source: Tripartite Alliance for Fair & Progressive Employment Practices: Responsible Retrenchment Practices
Pregnancy does not protect an employee from retrenchment.
However, if your employment is terminated without sufficient cause while you are pregnant, or if you are retrenched during your pregnancy, your employer must pay you the maternity benefits you would have been eligible for.
Maternity benefit is eligible for those who have:
This payment is in addition to any retrenchment benefits that may be payable to you.
Source: