If an employer informs that there will be a retrenchment exercise, but has not yet identified specific employees, does the employer need to notify MOM?

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Accepted Answer

If employers have the required details of the retrenchment, they are encouraged to notify MOM as early as possible, even if the employee has not been notified yet.

If employees have not been identified, there is an early alert form that allows employers to notify MOM of any impending retrenchment. This allows employers to provide an early indication of their planned retrenchment exercise and indicate their interest for SWDA, e2i, the tripartite partners and other relevant agencies to provide employment facilitation assistance. If the company is unionised, employers should also engage the unions early, before any employees are notified.

Notification of the early alert is a separate voluntarily exercise and does not fulfill the requirement of mandatory retrenchment notification.

If an employer informs that there will be a retrenchment exercise, but has not yet identified specific employees, does the employer need to notify MOM?

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