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Disciplinary Actions, Dismissals & Retrenchment In Singapore
All employees should be informed of the conduct expected at the workplace. You should set out all disciplinary procedure and policy for breaches of conduct and make it known to employees.
One of the most sensitive decisions you will have to make as an employer is dismissing or retrenching your employee/s. While it is important for you to consistently apply fair and objective employment practices throughout your employee’s career, it is when you are considering dismissal or retrenchment that these principles of fairness and objectivity should be best applied.
Your decision to dismiss an employee should be based on properly documented proof of poor performance, misconduct, or failure on your employee’s part to fulfil his/her duties and responsibilities. Before arriving at this decision, you should conduct a thorough enquiry where your employee is given sufficient opportunity to present his/her case.
If you are faced with excess manpower, refer to the “Tripartite Guidelines on Managing Excess Manpower and Responsible Retrenchment” for alternatives to avoid or minimise the need for retrenchments.
Where retrenchments are necessary, remember to carry out the exercise responsibly and in consultation with the union (if your company is unionised), or with your affected employees (if your company is not unionised). The selection of employees for retrenchment should be based on objective criteria.
Mandatory Retrenchment Notifications To Be More Comprehensive In Coverage
(Announcement: 07-September-2021 Employment practices)
From 1 November 2021, employers with at least 10 employees will be required to notify the Ministry of Manpower (MOM) of all retrenchments regardless of the number of employees affected. This will allow the tripartite partners and relevant agencies to provide timely support and assistance to workers who are retrenched.
The mandatory retrenchment notification has to be filed by employers within five working days after they provide notice of retrenchment to the affected employee(s).
Currently, these employers are only required to notify the MOM when they retrench five or more employees within a six-month period. The revised notification enables the tripartite partners, Workforce Singapore, NTUC’s e2i as well as other agencies to better reach out to affected local employees to provide employment and job search support.
The updated requirements on mandatory retrenchment notification will be reflected in the Employment (Retrenchment Reporting) (Amendment) Notification 2021.
Employers should also ensure that they manage any retrenchment exercises responsibly and fairly, in line with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.
For more information on mandatory retrenchment notifications, please visit http://www.mom.gov.sg/notify-retrenchment.
Mandatory Retrenchment Notifications
Employers must notify MOM of retrenchments within 5 working days after they notify their employees.
From 01-November-2021, employers with at least 10 employees must notify MOM of all retrenchments regardless of the number of employees affected.
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Employers who:
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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 Information must I provide?
- Company name and UEN
- Company contact person details
- Name of union (if company is unionised), and whether union was consulted
- Number of employees on the date of submission of 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 do I need before I can notify MOM?
You need:
Corppass. Apply for a Corppass account if you don’t have one.
Your Corppass admin or sub-admin must assign your Corppass account:
- Log in to Corppass.
- Go to eService Access tab.
- Choose Employment Standards Online (ESOL) as one of your company’s eServices.
- Assign Employment Standards Online (ESOL) eService to your CorpPass account.
What is the penalty for non-compliance?
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 on retrenchment matters?
For assistance on employment facilitation services, companies can contact the following:
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Source For Guidelines on Fair Employment Practices is from TAFEP.
