Tripartite Advisory to Include NTUC’s Fair Retrenchment Framework

The Government will be updating the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment to incorporate the Fair Retrenchment Framework (FRF) proposed by NTUC.

The intention to update the advisory means that the other tripartite partners, both employers and Government, have accepted the FRF. 

Deputy Prime Minister Heng Swee Keat made the announcement in his ministerial statement on 17 August 2020.

Mr Heng cautioned that retrenchments will be inevitable despite the Government’s best efforts.  

“As our Labour Movement puts it, we cannot protect every job, but we will protect every worker. For those of you who have fallen on hard times, we will continue to support you and walk this journey with you.

“The Government will continue to work closely with our tripartite partners to help our displaced workers,” said Mr Heng.

Fair Retrenchment Framework

The FRF, unveiled by NTUC on 24 July 2020, outlines three key principals to guide companies on responsible retrenchment practices.

The principles include:

• Protecting the Singaporean Core by helping Singaporeans keep their jobs while due considerations are given to foreign workers.
• Preserving jobs for workers by having early interventions. Before retrenchments, options like secondment, job-sharing arrangement, part-time work, collective pay reduction and others should be explored.
• Providing care and assistance support for workers by providing fair retrenchment packages and by coming onboard the NTUC Job Security Council. Together with NTUC, provide assistance for workers to find new jobs and acquire new skills where needed.

“Incorporating NTUC’s Fair Retrenchment Framework into the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment will mean better protection of our workers’ rights and ensure fair treatment of affected workers.

“NTUC will continue to work closer with our tripartite partners to protect the Singaporean Core, preserve jobs as well as provide care and assistance support,” said NTUC Secretary-General Ng Chee Meng, in response to Mr Heng’s statement.