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Mandatory Retrenchment Notifications

Employers must notify MOM of retrenchments within 5 working days after they notify their employees.

At a glance

Who must notify MOM

Employers who:

  • Have businesses registered in Singapore.
  • Have at least 10 employees.
  • Notify at least 5 employees of their retrenchment within any 6-month period.
When to notify MOM Within 5 working days after affected employees are notified of their retrenchment.
How to notify MOM Notify for retrenchment exercise
Related guidelines Tripartite Guidelines on Mandatory Retrenchment Notifications

Notifying MOM of retrenchment exercises will enable Workforce Singapore (WSG), the tripartite partners – the Ministry of Manpower, the National Trades Union Congress (NTUC) and the Singapore National Employers Federation (SNEF) – and other relevant agencies to help affected employees find alternative employment and/or identify relevant training to enhance employability.

What constitutes a retrenchment?Show

Retrenchment is the termination of employees due to redundancy or reorganisation of the employer’s profession, business, trade or work. This includes situations where companies undergo liquidation, receivership or judicial management.

The requirement to notify MOM of retrenchment applies to permanent employees, as well as contract employees with full contract terms of at least 6 months.

Note: If you are planning a retrenchment in your company, please refer to the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment to find out what your company needs to consider.

Who should submit retrenchment notifications?Show

Employers with businesses registered in Singapore and have at least 10 employees are required to notify MOM when at least 5 employees are given notices of retrenchment within any 6-month period.

Note: You are encouraged to notify MOM of your company’s retrenchment even when your company has fewer than 10 employees or when the number of employees given notices of retrenchment is fewer than 5 within any 6-month period. This will allow WSG and the tripartite partners to help affected employees find alternative employment or identify relevant training to enhance employability.

When should I submit the notification?Show

The notification must be submitted within 5 working days after your employee is notified about their retrenchment.

For the first 4 employees who were notified of their retrenchment, the notification must be submitted within 5 working days after the 5th employee is notified. Thereafter, the notification must be submitted within 5 working days after each employee is notified of his or her retrenchment in any 6-month period.

How to count any 6-month period?Show

The 6-month period means any 6 consecutive months. It is not necessarily half a calendar year, and may cross over two calendar years.

You notified 4 employees of their retrenchment on 1 April. You are not required to notify MOM of the retrenchment as fewer than 5 employees were notified of their retrenchment.

On 1 September, you notified 3 more employees of their retrenchment. Including the 4 employees retrenched on 1 April, you have notified a total of 5 or more employees of their retrenchment within a 6-month period.

You are now required to notify MOM for all 7 employees who were notified of their retrenchment within 5 working days after 1 September.

Note: A working day is a day other than a Saturday, a Sunday and a public holiday.

How to notify MOM?Show

To submit a retrenchment notification to MOM, you need to first prepare the following information:

  • Company name and UEN
  • Company contact person details
  • Name of union (if company is unionised), and whether the union was consulted
  • Number of employees on the date you submit the retrenchment notification to MOM. This includes all employees, i.e. Singaporeans, PRs and foreigners.
  • Details of employees to be retrenched (i.e. name, NRIC or FIN, residential status, job title, date of effective retrenchment, date of notification of retrenchment to employees)
  • Payment of retrenchment benefits and quantum
  • Provision of employment facilitation assistance

With the information prepared, you can submit a notification to MOM. You need CorpPass to log in. Apply for a CorpPass if you don’t have one.

What is the penalty for non-compliance?Show

Failure to comply with the requirements on the mandatory retrenchment notifications under the Employment Act will be a civil contravention, for which administrative penalties can be imposed.

Where to seek further assistance?Show

For assistance on employment facilitation services, companies can contact the following:

Workforce Singapore (WSG)
www.wsg.gov.sg
Phone: 6883 5885

Employment and Employability Institute (e2i)
www.e2i.com.sg
Phone: 6474 0606
Email: followup@e2i.com.sg

For further clarification on the mandatory retrenchment notifications, companies may approach MOM.
Phone: 6438 5122