Commentary
Retrenchments: Why early disclosure may do more harm than good
Advance retrenchment notification could lock in decisions too early and make job losses harder to avert.
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Investors value Singapore’s labour market flexibility; it is part of what keeps investment here and sustains good jobs, says the writer.
ST PHOTO: KUA CHEE SIONG
Kok Ping Soon
The recent parliamentary debate on “no jobless growth” amid artificial intelligence disruption has revived a proposal from the labour movement: NTUC secretary-general Ng Chee Meng has called for advance notification of retrenchments to the Government before the employee’s last working day. This is being studied in the ongoing review of the Employment Act.
The proposal is understandable. Workers should not be left blindsided. Recent cases have exposed how badly things can go when retrenchments or closures are handled poorly. When Twelve Cupcakes closed abruptly, about 80 workers were affected, with employees saying they had little or no warning. In Lazada’s layoffs, the union was reportedly not notified or consulted.
