Under the Workforce Singapore Agency Act, employers have up to five working days to inform the Ministry of Manpower after issuing the retrenchment notice to the fifth employee over a six-month period. This will come into effect from 1 January 2017.
The requirement will enable Workforce Singapore (WSG), tripartite partners involving MOM, the Singapore National Employers Federation (SNEF), NTUC and other relevant agencies to step up support for retrenched workers through job matching and career services.
Failure to notify within the required timeline is an offence and those convicted may be fined up to $5,000.
These details were announced in a statement issued by MOM, NTUC and SNEF on 25 November 2016.
Help for the Retrenched
In view of the weak economic climate, the Taskforce for Responsible Retrenchment and Employment Facilitation was set up in March 2016. It is made up of representatives from MOM, WSG, NTUC and NTUC’s e2i (Employment and Employability Institute).
Chaired by WSG Chief Executive Tan Choon Shian, the taskforce aims to provide timely and effective help to retrenched individuals and ensure that employers treat their workers fairly if retrenchment is inevitable.
Timely Assistance
For the first three quarters of 2016, WSG and NTUC reached out to more than 3,000 retrenched workers. However, tripartite partners said that more can be done. With the new mandatory notification now in place, the taskforce will be better able to assist retrenched individuals because of more complete and timely information.
NTUC’s Response
NTUC Assistant Secretary-General and Director of the newly established Future Jobs, Skills and Training capability (FJST) Patrick Tay, who is a member of the taskforce, said: “In line with the slow economic growth, we are seeing more workers being retrenched this year. Thus, it is essential that we raise awareness amongst employers and employees on the best practices and the help channels available if retrenchment activities are carried out.”
He added that unions have a role to play when retrenchments take place.
“On NTUC’s end, we urge employers who are affected by the ongoing labour market conditions to consult their unions as early as possible, so that we can first work with employers to manage the excess manpower before they resort to retrenchment.
“We will also continue to work closely with e2i to boost our engagement efforts to reach out to more employers, and to offer targeted assistance for their manpower needs,” emphasised Mr Tay.
Good To Know
Individuals affected by retrenchment or who think they may be at risk can approach e2i or WSG for assistance.
Employers can familiarise themselves with the new requirement by indicating their interest with the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP). They can be emailed at query-prog@tafep.sg.
For more information on the advisory, visit www.mom.gov.sg/notify-retrenchment.
