Mandating advanced retrenchment notification may push companies to finalise job cuts faster & discourage negotiation: Tan See Leng

Mandating advanced retrenchment notification poses "non-trivial" challenges and may "inadvertently" push companies to finalise retrenchments faster and discourage negotiations, Minister for Manpower Tan See Leng said during the Ministry of Manpower's Committee of Supply debate on Mar. 3.

Tan was responding to points raised by Members of Parliament Patrick Tay and Ng Chee Meng, who are the Assistant Secretary-General and Secretary-General of the National Trades Union Congress (NTUC).

Jobs might be saved with earlier notification: Ng

In his speech, Tay pointed out that, currently, notification only comes after retrenchment decisions have been finalised.

"By then, options are limited, and intervention is reactive," Tay said.

Earlier notification will allow for timely support, such as career coaching, job matching, redeployment, and, where possible, alternatives to retrenchment itself, Tay argued.

Ng, in his speech, reiterated similar points, but asked if mandatory retrenchment notifications can be brought forward.

The NTUC Secretary-General had previously said that several high-profile retrenchments that made headlines in 2025 could have been avoided if companies had worked with relevant unions and informed NTUC earlier.

Mandating notification might discourage negotiation: Tan

Responding, the minister commented that mandating advanced retrenchment notification poses "non-trivial" challenges.

"Retrenchment is often, in fact, I would say, is always a difficult process for all parties involved, and is often a last resort for companies," Tan said.

"And many a time, senior management, together with the board, conduct backroom negotiations to try to save as many jobs as possible."

If advanced retrenchment notification is mandated, it may "inadvertently" push companies to finalise retrenchments faster and discourage such negotiations, Tan argued.

Another concern which businesses have expressed is the leakage of confidential market information, Tan explained.

"Now, we are not ruling out any option. We are engaging a review. This will be a comprehensive review. We are consulting tripartite partners on these issues, and we will update in due course," Tan clarified.

Mandating retrenchment benefits

Tan also responded to the suggestion by Workers' Party chief Pritam Singh to legislate retrenchment benefits, with larger companies paying a higher amount. He said legislation was not a panacea.

"We adopt a balanced approach. We protect our workers, but at the same time, we need to give businesses some flexibility to adjust in different situations," Tan said.

He also said company size is not an indicator of the company's ability to afford retrenchment benefits.

"If you mandate retrenchment benefits in larger companies facing financial difficulties, I think we may inadvertently put even more jobs at risk," the minister continued.

Top image via MDDI / YouTube, Canva