In Singapore, employers are required by law to notify the Ministry of Manpower (MOM) when conducting retrenchments, particularly when retrenching five or more employees within a six-month period from companies with at least 10 employees. This obligation aims to promote responsible retrenchment and facilitate timely intervention to assist displaced workers. Over time, this notification requirement has evolved and strengthened, with notable recent cases underscoring its importance within Singapore’s tripartite labour relations framework.

History of Mandatory Retrenchment Notifications

The mandatory notification obligation was introduced on 1 January 2017, establishing a legal duty for employers to notify MOM within five working days after informing the fifth employee affected by retrenchment. This allows government agencies, such as Workforce Singapore (WSG) and the National Trades Union Congress (NTUC), to provide job placement assistance, career transition training, and other support. Failure to notify can result in fines of up to SGD 5,000 per offence.

This requirement emerged from tripartite collaboration between MOM, NTUC, and the Singapore National Employers Federation (SNEF) under the Taskforce for Responsible Retrenchment and Employment Facilitation. Building on this, the Mandatory Early Notification of Retrenchment (MEMRR) Advisory was introduced from 1 April 2019, urging employers to notify MOM even earlier in the retrenchment process. MEMRR enhances transparency by encouraging companies to alert MOM once retrenchments become highly likely, enabling proactive employment facilitation and safeguarding Singapore’s workforce.

Unilateral Retrenchment Notification Concerns

A prominent case illustrating issues around retrenchment notifications occurred in July 2020 with Eagle Services Asia (ESA), a joint venture between Singapore Airlines Engineering Company and Pratt & Whitney. ESA notified some employees of retrenchment without proper consultation with unions or MOM. The National Trades Union Congress (NTUC) and aerospace unions intervened, halting the exercise on grounds it breached tripartite consultation principles.

Subsequent cooperation led to joint reviews of affected employees and improved training support. MOM reiterated that responsible retrenchments require timely notifications and union engagement. This incident stressed adherence to notification and consultation requirements as foundational to fair workforce adjustments.

Severance Clauses Restricting Employee Rights

In 2025, Agoda faced scrutiny after retrenching about 50 employees in Singapore, amid reports that severance agreements prohibited retrenched staff from contacting MOM, unions, or other authorities under penalty of losing severance pay.  NTUC and unions criticized Agoda, calling the clauses unfair and contrary to responsible retrenchment standards. Agoda apologized and committed to revising terms to align with tripartite guidelines. This case spotlighted that retrenchment obligations extend beyond notification to guaranteeing workers’ unrestricted access to support mechanisms.

Conclusion

Singapore’s retrenchment notification obligations reflect its commitment to responsible, transparent, and fair employment practices. These measures help ensure retrenchments are conducted with fairness, dignity, and adequate support, balancing business needs and employee rights within Singapore’s evolving labour landscape.