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Each year, an average of 2,680 non-resident employees face retrenchment in Singapore. But how is the Ministry of Manpower (MOM) ensuring that companies handle the process fairly?
From 2021 to 2023, most retrenched non-resident employees were from the electronics manufacturing, information & communications, and wholesale trade sectors. Among those eligible, nine in 10 of those with at least two years of service received retrenchment benefits, the Ministry of Manpower (MOM) shared in a Parliamentary reply on 7 March 2025.
According to the Ministry, in the above-mentioned time period, an average of about 2,680 non-resident employees were retrenched each year. While MOM collects data on retrenched employees based on their residential status, it does not track figures by work pass type. The Ministry reiterated that retrenchments should always be a last resort and must be carried out with fairness.
Employers are expected to adhere to the Tripartite Advisory for Managing Excess Manpower and Responsible Retrenchment (TAMEM), a set of guidelines urging companies to treat all employees responsibly, regardless of their background. This includes conducting retrenchments sensitively and objectively, with clear and reasonable criteria for selecting affected employees.
The Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) monitors compliance, stepping in to engage employers when retrenchment practices are deemed unfair. While the advisory is not legally binding, companies that fail to uphold fair employment standards risk possible scrutiny from MOM.
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