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Alternatives to retrenchment

As an employer, you should consider alternatives to retrenchment such as redeployment and temporary layoffs as recommended by the Tripartite Guidelines on Managing Excess Manpower and Responsible Retrenchment.

Redeployment

You can redeploy or rotate employees within your company when the job scope is expanded or restructured.

Employees who are redeployed should also be provided with the relevant training.

Temporary layoffs

You can ask employees to stop coming to work for a short period.

However, you still have obligations towards your employees:

  • You must pay at least half of their gross salary during the days that they are temporarily laid off.
  • If they take annual leave on their laid off days, then you must pay them half-day pay for each day of annual leave taken. In such an arrangement:
    • Employees will get a full day's pay (half-day laid off pay + half-day annual leave pay).
    • Employees should not be asked to take more than 50% of their earned annual leave.

Implementing a shorter work week

You can ask employees to work only a few days a week for a short time. This reduced duration should not:

  • Exceed 3 days in a week.
  • Last more than 3 months.

Resources

For employers Read MOM’s study on Managing Excess Manpower – how some companies have successfully managed their excess manpower.
For employees

You can visit the following centres for employment assistance:

  • Singapore Workforce Development Agency's (WDA) Career Centres at the Community Development Councils.
  • Employment and Employability Institute.
  • CaliberLink (a one-stop training and employment service centre for PMEs).
Last Updated: 25 October 2016