Asked 2w ago
Any advice would really help.
Retrenchment payouts are recommended but actually not mandatory under current framework. I believe the reason for not stating a mandatory amount or term (like one month salary per year of service) is for the better, especially for firms that are making losses. The position is for employers to keep the jobs for as long as possible. retrenchment is not a preferred outcome, I think quite clear our government stand is to keep people employed as long as possible
Our system is based more on mom vs union vs employer. Actually based on what I know right now, companies executing retrenchment have to submit the plan to MOM. I can only guess that they are probably invited for coffee at MOM for a chat behind closed doors to understand the situation. Those that are concluded as giving unfair terms are likely given an official frown and a write-up in the news.
Back to your current situation, did the company hr or your manager provide you with the terms of retrenchment, like a spreadsheet with the amounts?
If a company is doing financially OK, I would say a fairly standard package is 1 month salary per year of service, plus payment for un-used leave, plus an estimate for bonus (the employer is really being nice here). They may also provide job counselling and re-employment services (this will be useful for people who got their first retrenchment, especially emotional support).
But this are really quite good terms. In the past, there have been cases of firms that have not given retrenchment benefits, because they were either loss making in that year already, or tried to delay the retrenchment as long as possible until they cannot tahan.
If you feel short-changed, then your venue should be MOM or NTUC Labour union.
As I have sort of been retrenched twice, my advice is talk to the HR and understand what you get. If you aren't happy with what you get, then schedule appointment at MOM. But your emotions are probably very vulnerable at this stage.
Update your cv and start the job search. In the meantime, check and lay out some plans to manage your money for 1 to 2 months. During this time, to deal with the emotions, I recommend you go for runs, and watch some sad stuff to bring yourself over the grief stage quickly. Then start reworking on your financial plans for the next 6 months and look for a new job.
During the interim, if you don't have a lot of cash to last, do some part-time work or contract assignments to get some cash to tide over the period. This will help your reserves last longer while you are still looking for the perm role. Getting engaged in some work will also take your mind off the emotions of being retrenched.
Hope this helps.
It depends on your employment period. You can refer to these websites (MOM) for more info.