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Employers should consider cost-saving measures to manage excess manpower. Retrenchment should always be the last resort.
Employers should consider alternatives such as redeployment and temporary layoffs.
Employers must notify MOM within 1 week for any cost-saving measures that affects employees’ salaries.
Retrenchment must be done responsibly and fairly.
Employers must notify MOM of retrenchments within 5 working days after they notify their employees.