Carry out a retrenchment in Singapore, the right way.
Answer a few questions and the toolkit builds your evidence pack — responsible, non-discriminatory selection, the Mandatory Retrenchment Notification, notice and final pay. Singapore calls it retrenchment, not redundancy.
Singapore — the Employment Act, MOM’s Mandatory Retrenchment Notification and the Tripartite Advisory. Responsible, non-discriminatory retrenchment.
The exact numbers and rules that apply — worked out for your situation and jurisdiction.
The letters, records and decision — drafted for your situation, ready to send. Not a checklist.
Save your plan, tick off each step with dates and evidence — proof you ran a proper process.
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Retrenchment, done right — for Singapore employers
Retrenchment (Singapore’s term for redundancy) is a process, not just a payment. MOM expects it to be responsible, non-discriminatory and — for larger employers — notified. This free AI toolkit walks you through a compliant retrenchment for your exact situation and builds the evidence pack that shows you followed the Tripartite guidelines.
The retrenchment process, step by step
- Business case — record the genuine business reason the role is no longer needed (restructuring, downturn, closure); it is about the role, not the person.
- Selection — use objective, non-discriminatory criteria (ability, experience), never age, race, gender, nationality or family status.
- Consultation — communicate early with affected employees (and the union, if any).
- Mandatory Retrenchment Notification (MRN) — employers with 10+ employees must notify MOM within 5 working days of notifying the affected employees, if 5 or more are retrenched within any 6-month period.
- Notice & final pay — give contractual/statutory notice and settle final pay, unused leave and any retrenchment benefit.
Retrenchment benefit
There is no statutory formula for retrenchment benefit in Singapore — the prevailing norm under the Tripartite Advisory is 2 weeks to 1 month’s salary per year of service, depending on the employer’s financial position and industry practice. Employees generally need at least 2 years’ service to be eligible; the exact amount is a matter of contract, collective agreement or negotiation.
The Employment Act sets no retrenchment-benefit rate; the figure above is the Tripartite norm, not a statutory entitlement. Confirm your contract / collective agreement.
Notice periods
| Less than 26 weeks | 1 day |
| 26 weeks to < 2 years | 1 week |
| 2 years to < 5 years | 2 weeks |
| 5 years or more | 4 weeks |
Employment Act s.10 minimums, unless the contract provides more. Notice may be paid in lieu.
Larger retrenchments (MOM notification)
An employer with 10 or more employees must submit a Mandatory Retrenchment Notification to MOM within 5 working days of informing the affected employees, where 5 or more employees are retrenched within any 6-month period. The notification supports re-employment assistance; it is a requirement, not an approval.
Common questions
Is retrenchment benefit compulsory in Singapore?
No statute sets a retrenchment-benefit amount. The Tripartite norm is 2 weeks to 1 month’s salary per year of service for employees with at least 2 years’ service, subject to the employer’s financial position. The exact figure is contractual or negotiated.
Do I have to notify MOM?
Yes if you have 10 or more employees and retrench 5 or more within any 6-month period — submit the Mandatory Retrenchment Notification within 5 working days of notifying the affected employees.
What selection criteria are allowed?
Objective, merit-based criteria such as ability and experience. Selecting on age, race, gender, nationality, religion or family responsibility is discriminatory and against the Tripartite guidelines.
Reference: Employment Act (Cap 91A) s.10; MOM Mandatory Retrenchment Notification; Tripartite Advisory on Managing Excess Manpower. General information for employers, not legal advice.