askST Jobs: I’ve been told to sign an NDA before I can get my retrenchment payout. What should I do?
Experts say employees should not rush to sign NDAs before seeking advice and reviewing the terms.
Employees facing pressure to sign an NDA before receiving their retrenchment payout should seek clarification on the timing of the agreement. Amarjit Kaur, head of employment practice at Withers KhattarWong, advises employees to request additional time if the deadline seems too tight. Retrenchment benefits, such as notice pay and unused annual leave, should not be contingent on signing an NDA, as these are typically contractual or statutory entitlements.
However, discretionary payments like ex gratia bonuses or waivers of non-compete obligations are often negotiated with NDAs. Employers may introduce new obligations in the NDA, including confidentiality and non-disparagement clauses, which employees should compare against their existing employment contract. Before signing, employees must review the NDA to understand their obligations and rights, and seek independent legal advice if the terms are onerous or ambiguous.
NTUC assistant secretary-general Patrick Tay emphasizes that NDAs aim to protect employers from third-party disclosure of retrenchment payouts, but employees should not sign NDAs that prevent them from seeking union or legal advice.
Written by urgent.news from Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
