Singapore Support for Employees During the COVID-19 Pandemic

The Singaporean government has introduced various schemes and finances to minimize the effect of the outbreak of the COVID-19 on companies. Anyway, what about the people who actually work there?

Retrenchment of Employees During the Coronavirus Pandemic

Retrenchment means the termination of the contract between an employee and an employer without the fault of the employee. With companies losing more and more of their finances and resources with the increasing risk of the virus, it is getting inevitable for them to let some of their workforces go.

Well, if companies are forced to end their contracts with some employees because of the present situations, they will need to pay Retrenchment Benefit for Employees in Singapore. Furthermore, if firms are not in the financial position to pay the retrenchment as per the previous contract, they can renegotiate for a new one, or negotiate with the union.

The government has also asked companies to put a special focus on low-wage workers. This can be in the form of increase in retrenchment support, referring employees to e2i or Workforce Singapore, and joining the NTUC’s Job Security Council (JSC).

Above all, retrenchment should only be the last resort. The government has advised companies to consider other options like No-pay Leave, Retraining Employees, Temporary Layoffs, etc. before ending the contract.

Companies can also avail from the Jobs Support Scheme. The program provides employers with wage subsidies of up to 75% on the first $4,600 of monthly wages during the months of April, May, July, and October.

Can Companies Fire Employees During the COVID-19 Pandemic?

Well, Covid-19 staff termination is still possible in cases of Misconduct or Poor Performance. For redundancy, there should be a retrenchment bonus.

What is the Process of Singapore Retrenchment?

Employers will need to report to the Ministry of Manpower if they have at least ten employees and are terminating the contract of 5 workers or more within a six month period. The news should reach the MOM within five days from the date of the fifth employee being dismissed.