SBF advises firms to retrench staff only as a last resort

They are also reminded to tap on to government programmes and assistance schemes.

The Singapore Business Federation (SBF) has issued an advisory to all its member companies on responsible retrenchment practices, stating that retrenchment should always be the last resort, a press release revealed.

“Companies should always consider alternatives such as sending employees for training to upgrade their skills, redeploying employees to alternative areas of work within the company, implementing flexible work schedules, and wage adjustments with management leading by example, before considering any retrenchment,” SBF said.

They are also reminded to tap on to the many programmes and assistance schemes offered by government agencies, NTUC, Singapore National Employers Federation (SNEF) and trade associations and chambers.

In the event that retrenchments are inevitable, SBF noted that the selection of employees for retrenchment should be conducted in a fair and transparent manner, based on objective and non-discriminatory criteria that gives due consideration to employees. It should also be based on skills and experiences needed to enable the company to emerge stronger and create new job opportunities.

“Companies should not discriminate against any particular group based on age, race, gender, religion, marital status or disability. Companies considering retrenchments should also work closely with government agencies and NTUC to find ways of preserving as many jobs as possible, and to provide assistance to affected employees. Companies planning retrenchments must inform the Ministry of Manpower (MOM) in advance,” it added.

Besides the various assistance schemes mentioned, companies can also tap onto SBF-managed programmes and resources such as the SGUnited Jobs Initiative, SGUnited Mid-Career Pathways Programme, Professional Conversion Programme – Southeast Asia Ready Talents and SBF Foundation Industry-led Compassion Fund.