23 December, 2016
Employers will be required to notify MOM of retrenchments within 5 working days of providing notice of retrenchments to affected employees.
On 25 November 2016, the Ministry of Manpower (“MOM”) announced that employers will be required to notify the MOM of retrenchments within 5 working days after they provide notice of retrenchments to affected employees, if 5 or more employees are retrenched in a 6-month period.
This will be a requirement under the Workforce Singapore Agency Act and will be effective as of 1 January 2017.
The retrenchment notifications will provide more complete and timely information in order to better enable Workforce Singapore and the Taskforce for Responsible Retrenchment and Employment Facilitation to assist retrenched local employees to find alternative employment and relevant training. The tripartite partners – MOM, the National Trades Union Congress and the Singapore National Employers Federation – have issued an advisory to provide guidance to employers on complying with this requirements (the “Advisory”).
This Update looks at the key information that employers need to know.
What constitutes a retrenchment?
The Advisory defines retrenchment as dismissal on the ground of redundancy or by reason of any reorganisation of the employer’s profession, business, trade or work.
This applies both to permanent employees and to contract workers with full contract terms of at least 6 months.
Who should submit retrenchment notifications?
Employers who employ at least 10 employees are required to notify MOM if 5 or more employees are retrenched in any 6-month period beginning 1 January 2017.
When should the retrenchment notification be submitted?
The notification must be submitted within 5 working days from the date on which the affected employee is notified of his or her retrenchment.
For the first four employees to be retrenched, the notification must be submitted within 5 working days from the date on which the 5th employee is notified, thereafter the notification must be submitted within 5 working days of the date on which each subsequent employee is notified.
How should the retrenchment notification be submitted?
The retrenchment notification should be submitted to MOM by the retrenchment notification form found at the following link:
http://www.mom.gov.sg/employment- practices/retrenchment/
mandatory-retrenchment-notifications
Employers will need to submit the following information:
- Company UEN
- Company contact person details
- Size of workforce before retrenchment (Singaporean/PR/Foreigner)
- Details of workers to be, or who have been, retrenched:
- NRIC/FIN
- Residential Status
- Date of retrenchment
- Job title
Penalty for Non-Compliance
An employer who fails to submit a retrenchment notification within the required time may be liable on conviction to penalties, including a fine not exceeding $5,000.
For further information, please contact:
Jenny Tsin, Partner, WongPartnership
jenny.tsin@wongpartnership.com
