HRSINGAPORE Community Discussions

Terminating employees during Covid-19

QUESTION

Hi HR friends,

We are planning to terminate administrative staff, some of whom have worked with us for 20 years.

Can the Company treat it as termination and not pay any retrenchment benefits as we are in red now?

Also, the staff are not entitled to retrenchment benefits under their employment contract and we are not unionised.

Look forward to your advice, thanks.

Anna

 

REPLIES & COMMENTS

 

Hi Anna

Many organisations are going through the same concerns with their workforce.

Please refer to the recent MOM advisories on retrenchment.

It may help you formulate a suitable way to handle this.

Sharon

 

 

Dear Anna

MOM has urged employers to provide retrenchment benefits and suggested that employers support the affected employees by providing a lump sum benefit of between one and three months' salary.

Companies badly affected by the pandemic should try to pay a fair package linked to the employee's years of service.

The current practice for retrenchment benefits is between two weeks and one month of salary per year of service.

Regards
Munjit

 

 

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