Benefits of Retrenchment in Singapore

Having a stable, well-paying job is essential for most people. However, it may not be possible to have your dream job due to limited opportunities or being at the wrong place at the wrong time. When that happens, you have several options other than taking up another job that’s just as stable but doesn’t provide any additional benefits.

The first step should be retrenchment in Singapore, which allows employees whose employers no longer need to leave with compensation according to the terms of their respective work contracts. The employee provides two weeks’ notice if he desires to do so, or his employer can give him an 8-week notice before making him leave without prior warning. Should both parties agree on its necessity, retrenchment can take place immediately with no notice.

There are two types of retrenchment: ordinary and collective. An ordinary retrenchment is a form of redundancy in which the employee was made redundant because his role or department no longer functions or if he is found redundant due to lack of work. Collective retrenchment occurs when an entire section, department, plant, or company is being shut down. In both cases, employees who have been terminated need to be paid compensation that ranges from four weeks to one month’s salary per year of service with their employers, depending on whether they were full-time or part-time workers when they left.

Employees laid off from employment without receiving any pay when they leave must be compensated for half a month’s worth of salary. If he had worked for his employers for less than two years, the compensation would come from the government as part of its Employment Insurance (EI) scheme or as a Special Employment Credit-funded program called Jobs Credit.

Retrenchment in Singapore is not always an option if you want to change jobs if your contract states that it will be difficult and subject to several conditions and circumstances before you can be made redundant by your employer. However, there is no harm in asking about how you can leave your current job and find new employment elsewhere, especially if things at work have become unbearable after having consulted with your managers on ways to improve matters. A new career path may help provide extra stimulus so you can feel motivated again and contribute more to your current company.

If you are worried about the results of asking for retrenchment in Singapore, think twice about what not having a job or leaving your current employment without any form of compensation can do to you financially and emotionally after all the effort you’ve put into it. It may turn out to be more devastating if an employer takes advantage of you by giving you unfair treatment that makes it difficult for you to stay at work because he knows that there is no other option available for you then. You might end up losing your mind thinking that all of this was your fault and nobody will offer their help anymore.

Before applying for jobs on MyCareersFuture, make sure that retrenchment is the best choice for you by considering all the pros and cons available.