Truly Tricky: Singapore Retrenchments & the Road Ahead
Picture this: you’re a young Singaporean hustling up the corporate ladder, dreaming of the Australian sunset. Fast forward to middle age, and you’re stuck in a green‑and‑yellow maze of ASB logos and “We’ll be opening a car‑sharing pod soon.” Sounds like a joke? Maybe, maybe not. Retrenchment is a real roller‑coaster for many.
Retrenchments Are on the Rise … Again
The last quarter of 2018 saw 2,510 workers let go. Juggling that with the first quarter of 2019’s 3,230 bonks the system— it’s a big jump, folks. Production, electronics, wholesale trade, transportation, and storage are the front‑lines battling this trend.
- SPH shrank its workforce by ~10 % in 2018.
- StarHub cut about 300 full‑time staff during the same period.
- Deutsche Bank is reportedly doing a massive Asia‑wide reshuffle, so the Singapore office is holding its breath.
Singapore’s “no‑burnout” business vibe is great— but it means employee rights hover on the flimsy side. The Ministry of Manpower (MOM) lets firms decide what “fair” looks like, with a few minimum bells and whistles.
Typical Retrenchment Packages
MOM’s guidelines say employer should pay 2 weeks to 1 month’s salary per year of service. In reality, a month’s salary per year is the market standard. Big banks might gladly hand you a little extra. SMEs? Expect the bare‑bones “see ya” sum.
Key points to remember:
- ≥ 5 years of service: ~2.5–5 months’ salary.
- Majors: often > 1 month per year.
- SMEs: usually < 1 month.
- Workers 62+ earn a life‑saving Employment Assistance Payment – talk about solidarity.
There’s no hard floor, but the Tripartite Guidelines suggest a $5,500 (≈ 3.5 months’ salary) minimum for the older crew.
Wondering if You’ve Been Unfairly Retrenched?
Time to raise your hand to MOM. Prove you got shortchanged or the notice period was lame.
- You worked < 2 years? No entitlement. Flip‑flop.
- You’ve been there 2–5 years? You’re owed at least 2 weeks’ notice.
- ≥ 5 years? Seek a 4‑week pre‑launch notice.
- Under 26 weeks? 1‑day notice is legal.
| Years Worked | Notice Period |
|---|---|
| ≥ 5 years | 4 weeks |
| 2–5 years | 2 weeks |
| 26 weeks‑2 years | 2 weeks |
| ≤ 26 weeks | 1 day |
Think it was discriminatory— age, race, gender, or religion? Bring it up. If it’s a mass layoff, claims of singled‑out are a tough sell.
After You’re Retracted: The Plan
Retrenchment isn’t a kill‑joy for your freedom; it just reshuffles your résumé. If the package is generous, you could lean toward early retirement. If not, consider these moves:
- Take part‑time gigs— Grab driving or tutoring can fill the gap.
- Refocus skill set— WSG certification might open doors to industries that are hiring.
- Update your résumé, ping recruiters, and network like your life depends on it.
Job‑hunting isn’t just about finding work; it’s about finding the right fit— one that appreciates what you’ve learned and what you can bring to the table.
— First published in MoneySmart
