Lim Biow Chuan: Make Retrenchment Benefits Compulsory and Make Companies Foot the Bill

Mountbatten MP Lim Biow Chuan said in parliament yesterday that retrenchment benefits should be made mandatory, and companies should be made to pay for this.

He suggested that companies should be forced to pay a minimum sum of between 3 to 6 months of retrenchment benefits, depending on the employee’s length of service.

This, he said, would enable retrenched workers to focus on learning new skills for future jobs without having to worry about their family’s monthly expenses.

Currently, the amount of retrenchment benefits is determined by agreements between employers and employees.

With the current volatile economy, the number of retrenchments has been rising.

The Manpower Ministry estimates that 4200 workers were laid off in the fourth quarter of 2015.

In the third quarter of 2015, 3460 workers were retrenched.

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