Intended Purpose of Section 45 of Employment Act 1968

Ms Gho Sze Kee asked the Acting Minister for Manpower in light of the recent Employment Claims Tribunals decision interpreting section 45 of the Employment Act 1968 (a) whether the Government will clarify the intended purpose of section 45; and (b) whether the provision remains necessary and consistent with the Government's policy on retrenchment benefits.

The recent Employment Claims Tribunal judgement published on the case of JIF versus JIG states that section 45 of the Employment Act should not be understood to generate any statutory entitlement to retrenchment benefits.

As part of the ongoing review of the Employment Act, the tripartite partners are studying ways to strengthen support for retrenched workers and provide greater clarity to employers on their obligations, including in relation to section 45 of the Employment Act. We will provide an update when the review is completed.