Singapore retrenchment regulations and tripartite framework

In Singapore, retrenchment is regulated as a measure of last resort rather than a routine business tool. The process is governed by a tripartite framework involving the Ministry of Manpower (MOM), the National Trades Union Congress (NTUC), and the Singapore National Employers Federation (SNEF). This framework aims to balance business flexibility with worker protections.

Under Singapore law, retrenchment is defined as the termination of an employee's contract due to redundancy or business reorganization. This applies to permanent employees and contract workers with terms of at least six months. It is legally distinct from dismissals based on misconduct or poor performance. According to the Employment Act 1968, employees with less than two years of continuous service are not entitled to retrenchment benefits upon redundancy unless otherwise specified in a contract or collective agreement.