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 demands to sign an NDA before receiving retrenchment payments should first negotiate more time if the deadline feels rushed. They should also request a detailed breakdown of their payout to identify what obligations are contractually or statutorily owed. Typically, these include notice pay, salary up to the termination date, and unused annual leave.
Retrenchment benefits, however, are discretionary payments not mandatory under Singapore law and are often offered as goodwill gestures to encourage signing. Before signing, employees must carefully review the NDA to understand the obligations they would be agreeing to. Employers commonly ask employees to waive confidentiality and non-disparagement obligations, and may introduce new or expanded obligations.
Employees should compare these against their current employment contract, especially focusing on non-compete clauses and post-termination obligations. They should also check if the NDA prevents legitimate disclosures, such as to their lawyer, family, or authorities. If the NDA appears overly restrictive or ambiguous, employees should seek independent legal advice before signing.
It is crucial the NDA does not infringe on an employee's right to seek union or legal advice, or to inform unions or authorities about the retrenchment.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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