Your Say: Why Singapore should strengthen laws protecting retrenched workers

I was recently retrenched. This came as a shock to me as I had been in a senior leadership role for nearly three years and had brought in significant revenue for my employer — a global company in the creative industry.

I was informed that the reason for my retrenchment was “financial challenges” and it was not a “reflection of my past performance or contributions”.

I asked about severance benefits, and was told I would not be getting any because the company was “not in a financially healthy position”.

I have appealed for a payout in line with the Ministry of Manpower (MOM)’s recommendations — generally up to a months’ salary per year of service for employees who have served for at least two years — and am still waiting for a response. 

Retrenchment benefits are not enshrined in Singapore’s labour laws.

As mentioned, MOM gives only broad guidelines. Any severance amount depends on what is provided for in one’s employment contract, or paid out of good will — not because of legislation.

Sadly, my contract didn’t include any such provision.

A friend urged me to speak with the Tripartite Alliance for Dispute Management who referred me to the Tripartite Alliance for Fair and Progressive Employment Practices.

Both officers who spoke with me were sympathetic but ultimately said the same thing my company’s Human Resources told me — that they can only point my company to best practices — and could not enforce anything.

My story isn’t the only one.

The recent high-profile retrenchments at Lazada and Google have exposed a weakness in Singapore’s labour laws, which experts acknowledge are geared towards supporting companies.

In the case of Google, affected staff were luckily offered a package that was “comparable” to retrenchment benefits in the United States.

In Lazada’s case, employees were offered two weeks’ salary per year of service. The Food Drinks and Allied Workers Union, which represents its workers, is pushing for more.

For perspective, I’ve worked as a Singaporean in Britain and Australia. Both these countries do have workplace laws that protect employees in the event of retrenchment.

In Australia for example, if you are made redundant, there is provision of at least four weeks’ pay if you have worked with a company for at least a year.

In Britain, employees get a payout if they’ve been working for a company for two years or more. This ranges from half a week’s pay to one-and-a-half week’s pay per full year of work, depending on age.

These practices give employees a safety net so that they can continue meeting financial obligations while searching for new jobs.

As a country that has ambitions to be a regional business hub, I urge MOM to strengthen the legal protection for employees here.  

If we are unable to strike a fair balance in the employment relationship, I worry about how competitive we will be in attracting and retaining global talents.

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