Employers express 'strong reservations' on proposal
The Singapore government is being urged to expand its advance retrenchment notification mandate to include unions in a bid to strengthen protections for employees in the country, according to reports.
Officials of the National Trades Union Congress (NTUC) said during the second day of the Budget debate that unions should be included in the parties notified ahead of retrenchments by employers.
The government should also provide more time for early interventions when it comes to retrenchments, The Straits Times reported, citing NTUC officials.
The current rule in Singapore requires employers with at least 10 employees to notify the Ministry of Manpower (MOM) of retrenchments within five working days after notifying employees.
But NTUC secretary‑general Ng Chee Meng underscored the need to reinforce the Labour Movement's ability to support workers during retrenchments.
"Advance retrenchment notifications support our ability to work together with companies to provide timely and tangible support of our affected workers before retrenchment, not after retrenchment, five days post, when many of the workers may have left the company already and are no longer contactable," Ng said.
Sanjeev Tiwari, Labour Nominated MP, added that the advance retrenchment notice preserves workers' dignity and reduces uncertainty.
"Early notification to unions is not a procedural nicety; it is the difference between proactive help and reactive damage control," Tiwari said.
"Many unionised companies recognise this. They give unions advance notice of upcoming retrenchment exercises, sometimes even months ahead."
'Strong reservations' from employers
The proposal has been met with "strong reservations" from employers in Singapore.
The Singapore National Employers Federation (SNEF), in a statement earlier this month, stressed that an advance notification regime will have significant implementation challenges and uncertain benefits.
"Some companies will be unable to comply with an advance notification regime because retrenchment decisions may be made overseas and communicated to local offices with short notice," said SNEF CEO Hao Shuo in a statement.
"In other cases, the scope and identities of affected employees are finalised as late as the day before because employers are still pursuing redeployment options, negotiating with investors or extending bank loans to save the business and jobs."
Advance notification also raises the risk of premature disclosure, according to the CEO. This could affect market confidence and employee morale.
"Mandating advance notification may therefore reduce operational flexibility, and unintentionally narrow the window for employers to redeploy their workers," he added.
Not about flexibility
But Ng stressed that the intent of the Labour Movement is not to constrain employers' flexibility.
"It is to put our tripartism to work in upholding responsible retrenchment and delivering more coordinated support for workers, including PMEs," the NTUC secretary-general said.
The debate on mandatory retrenchment notifications came ahead of major retrenchment moves in Singapore last year, including Jetstar and Agoda.
Government data revealed the incidence of retrenchment increased slightly to 6.2 workers retrenched per 1,000 employees in 2025.
"The increase largely reflects higher retrenchments earlier in the first three quarters of 2025 compared to the preceding year," MOM said. "Throughout 2025, business reorganisation or restructuring remained the primary reason for retrenchments."
