Mandatory early layoff alerts may hasten layoffs, impede talks: Tan See Leng
A review of the retrenchment notification framework is underway
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[SINGAPORE] Mandating employers to inform the authorities before they retrench workers may have its merits, but doing so may force companies to finalise retrenchments more quickly and discourage negotiations, Manpower Minister Tan See Leng warned on Tuesday (Mar 3).
“Retrenchment is always a difficult process for all parties involved, and is often a last resort for companies,” said Dr Tan during his ministry’s Committee of Supply debate.
He added that senior management and boards often conduct back-room negotiations to try to save as many jobs as possible.
“If we mandate advance notifications, this may inadvertently push companies to finalise retrenchments more quickly, discouraging such negotiations,” the minister said.
Dr Tan added that businesses have also expressed concerns about the potential leakage of confidential, market-sensitive information.
He was responding to suggestions by labour MPs Ng Chee Meng and Patrick Tay to implement advance mandatory retrenchment notifications.
Tay, who is NTUC’s assistant secretary-general, said that notification often come after retrenchment decisions have been finalised.
“By then, options are limited and intervention is reactive,” he said.
He proposed that mandatory retrenchment notifications be submitted prior to retrenchment, so that early support – such as career coaching, job matching and redeployment – can be activated and, where possible, alternatives to retrenchment can be explored.
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At present, companies with at least 10 employees are required to inform the Ministry of Manpower within five working days after an employee is notified of retrenchment.
Employers that fail to comply may face an administrative penalty of S$1,000. Cases of wilful non-compliance could attract stronger enforcement action, although the Tripartite Guidelines on Mandatory Retrenchment Notifications do not spell out specific measures.
The notification framework is intended to allow tripartite partners to step in promptly, to assist retrenched workers with job matching and training support to improve their employability.
A recent example of an employer that did not give workers or their unions advance notice of retrenchment was Twelve Cupcakes.
The bakery chain, which had about 20 outlets in Singapore, suddenly ceased operations on Oct 29, 2025, affecting about 80 workers. The Food, Drinks and Allied Workers Union said it only learnt of the company’s decision on the same day that Twelve Cupcakes broke the news to its workers.
Dr Tan said the government is “not ruling out any option”, adding that a comprehensive review of the Employment Act is underway. He noted that tripartite partners are being consulted and that updates will be provided in due course.
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