Tripartite Partners Update Advisory on Managing Excess Manpower and Responsible Retrenchment

The Ministry of Manpower (MOM), NTUC, and the Singapore National Employers Federation (SNEF) have jointly updated the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment to provide employers with clearer guidance on responsible retrenchment.

The tripartite partners made the announcement on 17 October 2020.

The update includes key principles found in NTUC’s Fair Retrenchment Framework (FRF) such as the need to maintain a strong Singaporean core.

NTUC Deputy Secretary-General Cham Hui Fong said that this inclusion was a welcomed move.

“It is important that companies provide unions with early notice so that we can leverage NTUC’s Job Security Council and NTUC’s e2i (Institute of Employment and Employability) to help affected workers source for possible training courses and place them into alternative jobs quickly,” she added.

Key Changes

Other than maintaining a strong Singaporean core, the advisory also advocates carrying out  retrenchments responsibly, sensitively and supportively.

Employers are encouraged to:

• provide a longer notice period beyond contractual or statutory requirements where possible;
• prepare managers for notifying employees of retrenchment in a sensitive manner, such as notifying in-person unless impractical to do so;
• have human resource personnel and union representatives onsite to address queries from retrenched employees, and maintain an open communication channel with affected employees;
• give affected employees the time and space to adjust to the news, before requesting them to vacate their workplaces; and
• be sensitive to the emotional needs of affected employees.

As a form of assistance to affected employees, employers can also consider providing training assistance post-retrenchment.

Employers who experience a pick-up in business activities following a retrenchment exercise should make a deliberate effort to strengthen their local workforce if they are able to do so.

A new “Responsible Retrenchment Practices” checklist has also been added as a quick guide to help employers manage retrenchments responsibly.

Reaching Out to Employers

Urging companies to adopt the recommendations, SNEF Executive Director Sim Gim Guan said: “Employers should consider business sustainability and long-term manpower needs when managing excess manpower.

“If retrenchments are inevitable after considering and exhausting other options, employers should properly plan their retrenchment exercise and communicate with affected employees with empathy and care.”

MOM Divisional Director of Labour Relations and Workplaces Division Then Yee Thoong stated that the updated advisory will provide employers with a more holistic and definitive guide on conducting retrenchments responsibly.

“Retrenchment is never easy and affects the livelihoods of employees. Hence, it is important that companies handle them responsibly and treat their employees with respect and compassion,” he said.