MOM weighs ‘action’ against firms that can afford retrenchment benefits but refuse to pay: Jasmin Lau
Most non-payers are smaller firms.
The Ministry of Manpower (MOM) is considering administrative action against employers who possess the means to provide retrenchment benefits but choose not to, despite repeated discussions and warnings, according to Acting Manpower Minister Jasmin Lau. This statement came in response to numerous questions from over ten MPs concerning the surge in retrenchments and declining re-employment rates in Singapore, following official data indicating that layoffs reached a post-pandemic peak in the second quarter of 2026.
Under Singapore law, retrenchment benefits are not obligatory; employers follow a tripartite advisory, which typically recommends payouts ranging from two weeks to one month's salary per year of service. According to mandatory retrenchment notifications submitted to MOM in 2025, approximately 88% of employers paid these benefits, while the remaining 12% cited reasons such as financial difficulties, lack of legal obligation, or alternative support.
Over 80% of retrenched workers who did not receive retrenchment benefits in 2025 were employed by firms with fewer than 200 employees. MOM's officials are contemplating bringing forward the mandatory retrenchment notification window to provide affected staff with job support more promptly. Currently, firms with 10 or more employees have up to five working days after notifying employees to inform MOM.
The ministry is also exploring ways to address the challenge of reaching retrenched workers directly once notification has been submitted, while respecting their privacy and personal preferences.
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