Robinsons' staff payout capped at S$13,000

Singapore

STAFF of Robinsons hoping for a huge payout from a retrenchment exercise may have to temper their expectations.

When a company is under liquidation, employees are afforded a priority over all other unsecured creditors. The amount payable for wages and salaries as well retrenchment benefits is equivalent to five months' salary or S$13,000, whichever is lesser, as set out in the Insolvency, Restructuring and Dissolution Act (IRDA).