Improving Short-term Relief Fund Outreach to Retrenched Low-wage Workers and Expediting Emergency Payouts after Company Closure

Mr Gerald Giam Yean Song asked the Acting Minister for Manpower (a) whether the Ministry proactively informs retrenched local, low-wage workers about the Short-Term Relief Fund soon after employers submit retrenchment notifications or enter liquidation; and (b) whether it will consider an interim emergency payout within one week of company closure, given that current disbursements take one to two months after claim verification.

The Short-Term Relief Fund (STRF) provides financial relief as a last resort to eligible local lower-income workers when their owed salaries, which their employers are legally obligated to pay, cannot be recovered.

When employees file salary claims with the Tripartite Alliance for Dispute Management (TADM), TADM will first engage their employers, mediate and help to recover the owed salaries from the employers. If the salary cannot be recovered despite best efforts, TADM will process STRF disbursements for eligible claimants. The disbursement may take one to two months as TADM needs to establish that the claims are valid and the salaries owed genuinely cannot be recovered. For those with urgent financial needs, we will refer them to their respective Social Service Office for financial assistance to meet their basic needs.