Recourse for Retrenched Unionised and Non-unionised Employees who are Paid Retrenchment Benefits that are Less Than Prevailing Norm

Mr Chua Kheng Wee Louis asked the Minister for Manpower what is the recourse for retrenched unionised and non-unionised employees who are eligible for retrenchment benefits but are paid less than the prevailing norm of between two weeks to one month of salary, per year of service.

Employees who are not paid retrenchment benefit according to their employment contracts may file contractual claims at the Tripartite Alliance for Dispute Management. If mediation is unsuccessful, the claim will be heard at the Employment Claims Tribunals.

For employees who are not paid retrenchment benefit according to their collective agreement, their union can bring the dispute to the Ministry of Manpower (MOM) for conciliation, failing which the dispute can be arbitrated at the Industrial Arbitration Court.

If there is no provision of retrenchment benefit in the employment contract or the collective agreement, the quantum is to be negotiated between employees, or the union in the case of a unionised company, and the employer concerned. In such a case, if the employer is unwilling to pay the prevailing norm stated in the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (Advisory), which is two weeks to one month salary per year of service, affected employees in non-unionised companies can approach the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) for assistance. TAFEP will engage and urge the employer to adhere to the Advisory. In the case of a unionised company, the union or the employer may also seek MOM's conciliation if the parties are unable to resolve the dispute at the bilateral level.