Can my company terminate my employment contract without paying any retrenchment benefit? Is it compulsory for employers to pay retrenchment benefit?
If an employer terminates an employment contract with no plan to fill the vacancy soon, the employee is considered to have been retrenched.
The amount of retrenchment benefit depends on what is provided for in the employment contract, memoranda of understanding or collective agreement (for unionised companies). If there is no contractual provision, it is to be negotiated between employees (or their union) and the employers.
While retrenchment benefit is not mandated by law, MOM strongly encourages employers to adhere to the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (TAMEM), including to provide retrenchment benefit to help affected employees while they search for employment.
This information is sourced from MOM
Related questions
What should I do if I did not receive retrenchment benefit from my company?
If my employer’s company is closing down, am I entitled to any compensation?
Are employees who have worked less than 2 years eligible for retrenchment benefit?
My employment contract with my employee states that I can provide 1-month notice to terminate employment at any time. Would I still need to notify MOM in this case?
