Employers must notify Ministry of Manpower of redundancies from January
Author: PM editorial | Date: 30 Nov 2016
Singaporean organisations which do not comply may face a fine of up to S$5,000
Employers in Singapore must notify the Ministry of Manpower (MOM) of redundancies within five working days, in a new regime that will begin from 1 January 2017.
The new rule applies to organisations with at least 10 employees who lose five or more workers within six months from 1 January. It applies to permanent employees, as well as contract workers on a minimum of a six-month contract. Failure to notify the MOM within five days may lead to a penalty of up to S$5,000.
The idea behind the new law is to target help to those without jobs as quickly as possible and get them back into work.
"Our top concern is employment support, because the long-term unemployed rate has been creeping up, at the same time as the rate of re-entry (into employment) has been coming down," Manpower Minister Lim Swee Say told the Straits Times.
"The sooner employers can report to us, the sooner we can reach out to retrenched workers, and the sooner we can put them under employment support," said Mr Lim.
The information submitted by employers will be passed to a new taskforce set up in March, called the Taskforce for Responsible Retrenchment and Employment Facilitation, led by Workforce Singapore (WSG).
A statement from the MOM said: “These notifications will provide more complete and timely retrenchment information. They will better enable Workforce Singapore and the Taskforce for Responsible Retrenchment and Employment Facilitation to assist retrenched local employees find alternative employment and relevant training to enhance their employability.”
Redundancies have remained high since the beginning of the year in Singapore, with expat and white collar jobs most at risk.