Case Study. In reality, not many people complain to MOM about unfair retrenchment, at least according to local news reports. If MOM finds the employer guilty of bias, they will take necessary action, including withholding financial support like wage subsidies, or suspending work pass privileges. ACTION AVERTED. Total employment in the second-quarter declined by 121,800, which is the largest recorded quarterly decline in Singapore. Please complete the form below and click on subscribe for daily newsletters from HRD Asia. 20/03/2019. Members of public say MOM’s statement that retrenchment in Singapore is at 7-year low last year is fake. Eagle Services Asia did not address concerns that it had engaged in unfair retrenchment practices. Recognizing that retrenchments may now be inevitable for businesses continuing to be negatively affected by COVID-19, the Ministry of Manpower (MOM), the National Trades Union Congress (NTUC) and the Singapore National Employers Federation (SNEF) (collectively, the Tripartite Partners) have jointly updated the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (TAMEM) to provide guidance on how to carry out a responsible retrenchment … Case Study UNIONS HALT ‘UNFAIR’ RETRENCHMENT BY AEROSPACE FIRM, INDUSTRIAL. Retrenchment benefits are payments given to employees to compensate them for the loss of employment. In the same speech, Minister Teo acknowledged employers’ struggle on deciding who to retain and who to let go. Every employment contractmust have an employment termination clause with the clearly defined rights, duties, and responsibilities of both employers and employees on the matters. This is why the retrenchment option should be taken only as a last resort.”, You've reached your limit - Register for free now for unlimited access, To read the full story, just register for free now - GET STARTED HERE. Firstly, MOM engages the employer to review their workforce before and after retrenchment. Retrenchments during these three months more than doubled to 6,700 from 3,220 in the first-quarter, and is almost triple the retrenchment rate Singapore witnessed over the same period last year. Summary Table: Retrenchment Retrenchment refers to the termination of permanent employees due to redundancy and early termination of term contract employees due to redundancy. SINGAPORE: A retrenchment exercise by Eagle Services Asia (ESA) was halted by aerospace and aviation unions after it was found the aircraft maintenance, repair, and overhaul (MRO) firm had not followed due process in letting go of its workers. Across sectors, massive job losses are on the horizon. Source: Labour Market Survey, Manpower Research & Statistics Department, MOM Retrenchment refers to the termination of permanent employees due to redundancy and early termination of term contract employees due to redundancy. Definitions: 2. She then reiterated the tripartite partners’ guidelines on how to carry out layoffs in a compassionate and responsible manner. 96A Employer’s obligation to furnish information on retrenchment of employees 97 Returns 98 Commissioner may call for further returns ... Singapore Statutes Online is provided by the Legislation Division of the Singapore Attorney-General's Chambers. Following the latest tripartite advisory on retrenchments, Teo reminded employers to ‘upkeep the Singaporean core’ if they had to choose between equally capable staff of different nationalities. Those with less than 2 years’ service could be granted an ex-gratia payment out of goodwill. The norm for retrenchment compensation is 2 weeks to 1 month’s salary per year of service. “Retrenchments are never easy,” she said. ", The decision to retrench workers was not taken lightly, said Eagle Services Asia.Â, "This is unfortunately a result of current market conditions we are facing, including customer-driven volume declines due to a generational pandemic no one could foresee," said a spokesperson for the firm.Â, The decision to reduce the company's Singapore workforce came after the implementation of other cost-cutting measures such as a temporary salary reduction and short work week, cancelled merit increases, hiring freezes and discretionary spending cuts, the spokesperson added.Â. For example, if you have been employed for 26 weeks or less, y… Also, employers may be ordered to compensate or reinstate employees if it was found that they were unfairly dismissed due to discrimination. In May, tripartite guidelines on managing excess manpower and responsible retrenchment were issued by the Ministry of Manpower (MOM), the Singapore National Employers Federation and … The company had proceeded with releasing … Tell us about it. Under the Employment Act in Singapore, employees are eligible for retrenchment benefits if they’ve been working for at least two years. To make a fair assessment on the best course of action, leaders need to first determine a clear business direction. Manila faces stricter lockdown amid virus spike, How to encourage employees to learn at work, Retrenchment checklist: 10 ways to keep it a 'fair' exercise, MOM: Smaller firms showing ‘vitality’ after wage boost, Over half of employees fearful of return to work, Little Canada’s director of people: ‘Be part of something small’, Atlassian Work Futurist Dom Price on synchronous vs asynchronous work. “It brings great stress to the workers, including to their families. Mediacorp Pte Ltd. All rights reserved. Employees who have served the company for at least 2 years are eligible for retrenchment benefits. READ: NTUC proposes framework as it calls on companies to fairly treat workers affected by retrenchments, READ: Singapore jobless rate hits 2.9%, highest in more than a decade; retrenchments double, READ: Flights grounded, fewer repairs: Singapore’s aerospace industry feels knock-on effects of COVID-19. What happens if a retrenched employee accuses you of carrying out ‘unfair dismissals’? A retrenchment is defined as termination of a permanent or contract employee’s (minimum six-month term) contract of service due to redundancy or reorganisation of the employer’s profession, business, trade or work, which would include mergers, restructuring or downsizing whether due to cash flow issues or otherwise, and judicial management. “I know this, having been involved in supporting retrenched workers for well over a decade, since I was in NTUC. That means the market rate for someone who’s worked for a company for 5 years is 2.5 to 5 months’ salary worth of retrenchment benefits. Retrenchment benefits. NTUC halts retrenchment exercise at SIA Engineering joint venture after finding out about unfair practices. Here are three cases detailing how Tafep dealt with unfair hiring and retrenchment practices: 1. We wanted a fair negotiation," said Mr Ng on Wednesday.Â, Workers gave their "overwhelming support" to pursue legal industrial action, the labour chief said.Â, He added that "calm and good sense" ultimately prevailed, and an amicable agreement was reached with Eagle Services Asia on the retrenchment.Â, The Ministry of Manpower (MOM) said Eagle Services Asia's move to take "certain unilateral decisions" without consulting the ministry and unions is not aligned with the tripartite advisory.Â. A security agency posted … Singapore News - After working at a multi-national corporation for more than 20 years, a man was terminated over e-mail in April. Retrenchments in Singapore are expected to reach anywhere between 45,000 to 200,000 this year. ... Singapore Statutes Online is provided by the Legislation Division of the Singapore Attorney-General's Chambers. Employees with 2 years’ service or more are eligible for retrenchment benefits while those with less than 2 years’ service may only be granted ex gratia (out of goodwill) payment at the discretion of the employer. “Ultimately, they have to go back to why this drastic step needs to be taken – for the business and the people it supports to have the best chance of survival, or to restructure for continued longer-term viability,” Teo said. In December 2018 and recently in March 2020, MOM published guidelines as to what may constitute wrongful dismissal. If retrenchment benefits are not paid out, the employee may file a claim or go through mediationat the T… In Q1 this year, retrenchments were already up 12% from the previous quarter, and it’ll only get worse. In a parliamentary speech, Singapore’s Manpower Minister Josephine Teo broke down how the Ministry of Manpower (MOM) handled employee complaints against ‘unfair’ retrenchment practices. "To let everyone understand that NTUC will stand up to protect our workers, I authorised our unions to prepare for industrial action should it become necessary to persuade management not to take unilateral decisions. Typical retrenchment packages in Singapore According to the MOM, the prevailing norm is to offer retrenchment packages worth 2 weeks to 1 month’s salary per year of services . SINGAPORE — Some had their contracts terminated without clear explanation — just before their firms moved overseas. Workers cross road in downtown Singapore from Shutterstock.com. Wrongful dismissals include: Dismissal on discriminatory grounds based on age, race, gender, religion, marital status and family responsibilities or disability. It looks like the email address you entered is not valid. READ MORE: How to calculate retrenchment benefits. Amount of compensation to deprive employee of her maternity benefits. ... of such a term in the contract serves to guard against the risk of having the dismissal held to be substantively unfair when it is legally challenged at a later stage. Others were let go because they did not meet their performance targets. Firstly, MOM engages the employer to review their workforce before and after retrenchment. The principal statute that governs employment termination is the Employment Act of Singapore. Who is eligible. The Employment Act of Singapore is the principal statute governing termination of employment. The framework, first proposed by NTUC last week, aims to help protect workers' rights and ensure fair treatment for those affected by retrenchments. This service is not intended for persons residing in the EU. Change password, update personal details and more. in Comments. Employers thus must strike a ‘very delicate balance’ between bolstering the company’s financial health, as well as considering employees’ needs, whether they’re retained or retrenched. What constitutes wrongful or unfair dismissal in Singapore? Singapore laws accord protection to employees against unfair, unlawful, and wrongful dismissal. In the public sector, it … by Rubaashini Shunmuganathan. SINGAPORE: A retrenchment exercise by Eagle Services Asia (ESA) was halted by aerospace and aviation unions after it was found the aircraft maintenance, repair … ACTION AVERTED SINGAPORE: A retrenchment exercise by Eagle Services Asia (ESA) was halted by aerospace and aviation unions after it was found the aircraft maintenance, repair, and overhaul (MRO) firm had not followed due process in letting go of its workers. But that does not mean that retrenched workers are being treated fairly. It added that the unions had negotiated for an additional training grant for all affected union members, on top of the "fair" compensation package offered to affected employees. UNIONS HALT ‘UNFAIR’ RETRENCHMENT BY AEROSPACE FIRM, INDUSTRIAL. This Notification is the Employment (Retrenchment Reporting) Notification 2019 and comes into operation on 1 April 2019. "MOM understands and empathise with the workers’ grievances," said the ministry. Every employment contract must contain a clause on termination, outlining both the employers and employees rights, duties and responsibilities on termination of employment. Although unlawful and wrongful dismissal is commonly relied on in situations where an employee is terminated without notice/summarily, the definition is wider than those situations as it includes all situations where an employee ’ s employment was terminated without just or sufficient cause. Job applicants or employees can report unfair job advertisements, workplace practices or workplace harassment. Data on retrenchment are useful in monitoring the impact of an economic downturn or restructuring on workers and in identifying industries which are re-structuring or ailing. "We are glad that ESA took steps to rectify their earlier decisions and eventually were able to come to an amicable arrangement with the union to address the concerns of the workers, while maintaining good tripartite relations. Reading Time: 4 mins read 0. In the process, legal industrial action, which received "overwhelming support" from workers and was approved by the labour chief Ng Chee Meng, … For termination with notice, a dated, written notice of termination can be given by your employer from 1 day to 4 weeks in advance based on the duration of your employment (if you and your employer have not previously agreed on a notice period). Staff from the NTUC’s Employment and Employability Institute (e2i) were also on-site during the retrenchment to provide support and help match affected employees to job placement opportunities. Dismissal to deprive an employee of benefits or entitlements, e.g. Singapore’s key item of employment legislation is the Employment Act, which deals with basic issues such as employment contracts, termination, pay, working hours, part-time work, rest periods, annual leave, public holidays, maternity leave and childcare leave. Retrenchment of Permanent Employees refers to the termination of employment of a permanent employee due to redundancy. "Union leaders were on-site to assist affected employees and to provide support during this difficult time," the statement said.Â, "NTUC would like to reiterate that while retrenchments may be inevitable, companies must exhaust all other options before making the call to retrench employees," it stated.Â, "NTUC understands these are tough times. Nonetheless, there must still be fair play and proper process accorded to affected workers in any retrenchment," said labour chief Mr Ng.Â, "At the end of the day, while NTUC and our unions may not be able to save every job, we will do our best to protect the rights and interests of every worker.  We will do so in a fair way to our employer partners as well. Report Discrimination or Workplace Harassment. Age discrimination. ", Earlier this month British jet engine-maker Rolls-Royce announced it would cut about 240 jobs in Singapore, or about 24 per cent of its local workforce, due to the impact of the ongoing COVID-19 pandemic.Â. SINGAPORE: A retrenchment exercise by Eagle Services Asia (ESA) was halted by aerospace and aviation unions after it was found the aircraft maintenance, repair and overhaul (MRO) firm had not followed due process in letting go of its workers. HRD finds out how the Ministry of Manpower handles employee complaints. The number of complaints by workers to the authorities about being unfairly retrenched has remained low, said the Ministry of Manpower (MOM). Retrenchment of employees on fixed-term contracts: How far can you go? The unfair workplace practices everyone should know about. meREWARDS lets you get coupon deals, and earn cashback when you complete surveys, dine, travel and shop with our partners, SINGAPORE: A retrenchment exercise by Eagle Services Asia (ESA) was halted by aerospace and aviation unions after it was found the aircraft maintenance, repair and overhaul (MRO) firm had not followed due process in letting go of its workers.Â, In the process, legal industrial action, which received "overwhelming support" from workers and was approved by the labour chief Ng Chee Meng, was averted.Â, In a joint statement on Wednesday (Jul 29), the National Trades Union Congress (NTUC) and three unions representing Eagle Services staff said the firm had proceeded to release specific workers on Jul 22, before a name list was finalised with the unions.Â, This was despite the firm having been in ongoing negotiations with the unions - namely the Air Transport Executive Staff Union, SIA Engineering Company Engineers and Executives Union and the Singapore Airlines Staff Union.Â, "When the unions were alerted that ESA management had gone ahead to start informing employees that they may be retrenched, the National Trades Union Congress (NTUC) and the unions took decisive action and stepped in to stop any further action by the company until an agreement could be reached," the statement said.Â, "The lack of transparency and disregard for negotiations with the unions is not acceptable and is not how a retrenchment exercise should be conducted," it added.Â, Media reports earlier this week stated that Eagle Services Asia - a joint venture between Singapore Airlines (SIA) Engineering, and US aerospace company Pratt and Whitney - had laid off 144 of its employees between Jul 22 and 24.Â, However, the firm later said that no employee was retrenched on those dates, and that all its employees were still on its payroll.Â, The union statement noted that even as the unions continued negotiations with Eagle Services Asia, they separately engaged with their members.Â, A secret ballot - authorised by NTUC secretary-general Ng Chee Meng - was conducted to sanction legal industrial action to "rectify any shortcomings and improve the retrenchment process, if and where necessary".Â, In a statement on his Facebook page on Wednesday, Mr Ng said he had received messages about a week ago from workers and unions about an "unfair" retrenchment exercise.Â, "While NTUC respects management’s needed measures to keep the business viable, we will stand up for our workers’ dignity, interests and fair play," he said, adding that this is done through a collaborative approach under the Fair Retrenchment Framework.Â. READ MORE: Retrenchment checklist: 10 ways to keep it a 'fair' exercise. In a parliamentary speech, Singapore’s Manpower Minister Josephine Teo broke down how the Ministry of Manpower (MOM) handled employee complaints against ‘unfair’ retrenchment practices. ALL OTHER OPTIONS TO BE EXHAUSTED BEFORE RETRENCHMENT. Next, they investigate the reasons behind the process – the criteria used for selection, and whether ‘these are objective and rational’. Then, consider the abilities of the staff, their skills, and how those are relevant to the business – in the short as well as long-term. If any employee is able to prove that he/she has been wrongfully dismissed, other than bringing a case to the Courts, they are also able to file a complaint with MOM through the Tripartite Alliance Dispute Management … Our daily newsletter is FREE and keeps you up-to-date with the world of HR. Advice for a ‘fair’ retrenchment exercise Copyright© Mediacorp 2021. “If after the retrenchment, the business still falters, the workers who didn’t get retrenched will also be hurt.”. Termination can occur with or without notice. Typical retrenchment packages in Singapore According to the MOM, the prevailing norm is to offer retrenchment packages worth 2 weeks to 1 month’s salary per year of services . What Is Responsible Retrenchment and how to manage it responsibly and sensitively.