HRSINGAPORE Community Discussions

AWS & Retrenchment


Dear all,

Our Operations Manager drawing a monthly salary above $4,500 is made redundant and currently given a month notice. His last day of work being 6 July 2018.

I am aware that the Manager or Executive (White Collar) is not covered under EA Part IV.

I was told that AWS & Bonus are not mandatory to give by Employer though it is stipulated in his contract. Is he right to expect for AWS which we pay out by end July and December??

Your kind advice is much appreciated.




Reply 1

I believe that this linked to the internal rules of the company...and as Operation Manager, kind of appreciation to him you should pay him the bonus until his resignation date. In my opinion, if the employee has long experience within the company and good record and performance, I would give him a full bonus in this case, hundreds of dollars will not affect the company revenue but it will spread a good reputation of the employer.




Reply 2

From my understanding, he is not entitled to the AWS or bonus in July and Dec. Some company stated in the policies that once the person resigned, he or she shall be entitled to the company benefits other than medical.




Reply 3

For redundancy, it is common practice to provide prorated AWS that is computed up to his last day of service, and especially if it is in the employment contract. For bonus that is subject to performance, no need.




Reply 4

Rules aside hope we are compassionate towards our leaving employees that they might face difficulties after losing a job. Do you not pay retrenchment benefits if it is retrenchment exercise? MOM is right to soon cover these mid-range salary PMET group.




Reply 5

Since his contract provides for AWS and bonus, it depends on the company's policy and procedure to determine and administer his entitlement to such compensation. If there are no clear rules on such payment, then it depends on the employee's situation and management's discretion, on a case to case basis.