From 1 November 2021, employers with at least 10 employees must notify the Ministry of Manpower (MOM) of all retrenchments, regardless of the number or nationality of workers affected.
The move aims to give tripartite partners and relevant agencies more runway to provide timely support and assistance to affected workers, said MOM.
It would also help companies by removing the need for them to remember when a notification to MOM on their retrenchment decisions should be sent.
MOM issued a press release on the changes on 7 September 2021.
The current Mandatory Retrenchment Notifications (MRN), introduced in 2017, states that employers are required to notify the ministry only when they retrench five or more employees within a six-month period.
Speaking to the press, Senior Minister of State for Manpower Koh Poh Koon said that the change was made due to the evolving employment landscape, where transformation may impact companies’ business models and workforce.
He added that COVID-19 has also affected the labour market and the Government wants to help affected workers as efficiently possible.
“Ultimately, the thing we want to achieve is to make sure that regardless of the situation, we want to help as many workers as possible without imposing additional burden on companies,” he said.
After 1 November, MRNs are to be submitted within five working days after employees have been notified of their retrenchment.
Employers can do so by visiting the MOM retrenchment notification website. The notification will take approximately 10 minutes to complete.
Failure to comply will be regarded as a civil contravention, of which fines of up to $2,000 may be imposed.
MOM urged employers to conduct all retrenchments responsibly and fairly, in line with Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.
Dr Koh urged companies, no matter the size to comply with the requirement.
“We hope that companies with less than 10 employees will also do this voluntarily, because ultimately, as a responsible employer, I think it is good that they can also take care of every single employee,” he said.
NTUC Assistant Secretary-General Patrick Tay welcomed the move, saying the update will allow NTUC to extend prompt support and assistance to affected workers, no matter the size of the retrenchment.
Taking to Facebook, he added that NTUC will continue to work closely with tripartite partners and other relevant agencies, tapping on NTUC Job Security Council and the relevant Company Training Committees, to support workers in the areas of employment facilitation, upskilling and reskilling.
“We urge companies to save jobs, protect the Singaporean Core especially, and only retrench as a last resort. We can work together to upskill workers pre-emptively, minimising retrenchments when businesses are not doing well. Companies are encouraged to work with NTUC to set up Company Training Committees to support workers in upskilling and achieving better work prospects through company training,” he said.
