Forum: Mandating advance retrenchment notification may reduce employers’ operational flexibility
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The labour movement recently informed the media that it would be calling for mandatory advance retrenchment notification at the 2026 Budget debate ( More companies turn to NTUC for support amid AI disruption,
In Singapore’s small and open economy, employers have to balance the need to adapt and remain competitive with their responsibility to employees, and we are fully cognisant of the impact of retrenchments on employees.
Today, employers with at least 10 employees are required to notify the Ministry of Manpower within five working days of informing affected employees. This ensures timely activation of employment facilitation support while safeguarding business confidentiality.
SNEF is prepared to support a review of this timeframe, but not to move to an advance notification regime, which has significant implementation challenges and uncertain benefits.
Some companies will be unable to comply with an advance notification regime because retrenchment decisions may be made overseas and communicated to local offices with short notice.
In other cases, the scope and identities of affected employees are finalised as late as the day before because employers are still pursuing redeployment options, negotiating with investors or extending bank loans to save the business and jobs.
Restructuring plans are commercially sensitive, and premature disclosure could lead to leaks that affect market confidence and employee morale, and potentially jeopardise such efforts.
Mandating advance notification may therefore reduce operational flexibility, and unintentionally narrow the window for employers to redeploy their workers.
No employer takes a decision to retrench lightly. But when retrenchments do happen, what is important to retrenched workers is finding a suitable job.
SNEF will continue to support employers in adopting responsible retrenchment practices, including making mandatory retrenchment notifications to facilitate job matching, and do right by our workers.
Hao Shuo
Chief Executive Officer
Singapore National Employers Federation
