Workers who lose roles due to redundancies considered retrenched, even if they're asked to reapply: MOM, NTUC

Even when employers offer new or similar roles for workers after their jobs have been made redundant, these employees are considered to have been retrenched, the Ministry of Manpower (MOM) and the National Trades Union Congress (NTUC) told AsiaOne on Friday (June 5).

Both the ministry and labour movement also asked that companies treat retrenchments as a last resort.

There has been a trend of some businesses asking workers to reapply for roles under the guise of "new opportunities", either locally or overseas, after their existing one have been made redundant.

Under the law, employers with at least 10 workers must submit a retrenchment notification to MOM within five working days of notifying affected staff. Retrenchment benefits, however, are not currently mandated.

Retrenchments as last resort

NTUC told AsiaOne it recognises that firms may undertake various measures as a result of the evolving business environment. But it urged employers to "cut costs to save jobs, and not cut jobs to save costs".

Meanwhile, MOM told AsiaOne: "Retrenchments should be the last resort and companies should explore alternatives such as redeployment of employees in line with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (Tamem)."

Where retrenchments are inevitable, the ministry said employers are expected to retrench responsibly and in line with Tamem. "This includes informing affected employees early and communicating clearly on how the retrenchment will be carried out to give employees time to plan and adjust."

When companies inform the ministry early, Workforce Singapore (WSG) and NTUC's Employment and Employability Institute (e2i) can reach out with information on government assistance schemes, retrenchment guidelines and employment facilitation for affected employees, MOM added.

NTUC pointed out that under Tamem, businesses are expected to treat retrenchments as a last resort, after exploring alternatives for workers, such as redeployment and reskilling.

"Where job losses are unavoidable, employers should inform their unions in advance; and apply objective and fair selection criteria when identifying workers for the retrenchment; communicate clearly the impact of the retrenchment with workers; and provide adequate notice, compensation and employment facilitation support for them," the labour movement added.

Asking workers to reapply

NTUC said it is concerned about the practice of companies asking workers to reapply for roles — whether local or overseas under the guise of "new opportunities".

"If the outcome of these practices is that a worker's role in Singapore is made redundant, such arrangements are recognised and treated as retrenchment," said the labour movement.

In reply to further queries from AsiaOne, NTUC explained: "If a worker's job role in Singapore is rendered redundant, including where the role no longer exists or has been shifted overseas, this would constitute a retrenchment in substance, regardless of how it is labelled. 

"The labelling or terminologies of such redundancies cannot be used to bypass employers' obligations and responsible retrenchment practices stated in Tamem".

NTUC also advised workers to carefully review the terms in their employment contracts and assess the exit benefits offered by their employers. Workers in doubt can approach NTUC and their respective unions for assistance

The labour movement also urged more workers, including PMETs, to join NTUC so that they can be better represented. In unionised companies, NTUC and unions can better negotiate fair retrenchment terms, and support redeployment and reskilling of affected workers.

Meanwhile, NTUC's e2i also facilitates job matching, upskilling and other forms of career transition support for all workers.

"NTUC strongly encourages all employers in Singapore to engage NTUC or their unions early, communicate clearly and put in place meaningful support for workers, so that livelihoods are protected, and workforce transitions are managed in a fair and responsible manner," the labour movement added.

Retrenchments stable in Q1 of 2026

In a news release on Wednesday, NTUC noted that retrenchments in Singapore have been stable at 3,700 for the first quarter of 2026, slightly up from 3,690 in the previous quarter.

But these figures, provided in the MOM's Labour Market Advance Release, are only reflective of the early part of the year, NTUC caveated.

"There's no saying ongoing Middle East tensions and geopolitical uncertainty won't cause numbers to soar in the months to come."

NTUC pointed out that while retrenchment benefits are not currently mandated, its members in unionised companies will receive retrenchment benefits as spelled out in the respective collective agreements between the union and company. 

Typically, these benefits include one month's salary for each year of service, capped at 25 years. Union members also receive support through representation and dispute assistance, among other benefits.

NTUC workforce group director Cham Hui Fong said: "The majority of the employment contracts in non-unionised companies do not have a retrenchment benefit clause because they find it taboo."

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khooyihang@asiaone.com