Singapore companies with at least ten employees will soon be mandated to notify the Ministry of Manpower (MOM) each time they retire staff from 1 November.
Employers must submit this notification within five working days of the notice of withdrawal to the affected workers.
Currently, employers only need to notify MOM when they resign from five or more employees in a six-month period.
“The revised notification allows tripartite partners, Workforce Singapore, the Institute of Employment and Employability, as well as other agencies, to better reach affected local employees to provide job search and employment assistance,” MOM said.
Dr Koh Poh Koon, Manpower’s prime minister, said a better way to help jobseekers is to “warn them ahead of time when there may be a reduction risk” so they can take action. support to help them find a new job, such as career guidance and training.
“By streamlining it and forcing the first employee’s notification to be reduced … we hope we can step in sooner to help each and every one of the employees who may face the reduction.”
He added that this also helps employers as they no longer need to track who is the fifth employee behind in the six month period.
Companies can notify MOM of restrictions by submitting relevant information through their website, such as the size of the workforce prior to the reduction and the job designation of the affected worker. The whole process takes about 10 minutes to complete.
Penalties of up to US $ 2,000 can be imposed on employers who do not comply with this regulation, which was introduced in 2017.
Unemployment has risen in Singapore
Singapore’s global unemployment rate it rose to 2.8% in July, up 0.1 percentage points from the previous month, marking the first time unemployment rates rose in ten months.
This reflects a decline in worker demand, as sectors such as food and beverage and retail trade were affected by Covid-19 restrictions.
The unemployment rate for residents – which covers Singapore residents and permanent residents – rose 0.2 percentage points to 3.7%, while the citizen unemployment rate rose 0.2 percentage points to 3 , 9%. This translates into 87,300 unemployed residents in July, as well as 77,200 citizens.
MOM has attributed the increase in reductions mainly to a small increase in layoffs in the manufacturing and construction sectors.
Economists point out that the situation is likely to be temporary and the labor market will recover as Singapore reopens.
Labor Minister Tan See Leng assured that MOM and Workforce Singapore will continue to support jobseekers and employers to match workers with the opportunities available. Job seekers can take advantage of initiatives such as the SGUnited Jobs and Skills package to place them in job opportunities and skills.
Featured Image Credit: Wan Wei