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A day after the National Salary Council issued new guidelines on compensation, the tripartite partners followed up with an updated framework for staff reductions indicating that the employment situation ahead remains bleak.
Employers must ensure that objective criteria, such as ability, experience and skills, are used in case they need to fire workers. They should also be inclined to retain Singaporeans, while recognizing the importance of permanent residents in their workforce.
“The tripartite notice on Managing Surplus Manpower and Responsible Downsizing calls on employers to lean in favor of Singaporean citizens,” said a spokesman for the Ministry of Manpower (MOM).
“It also recognizes the importance of allowing employers to retain capable public relations as part of their local workforce. The primary considerations are the merit and skills of the people and how they help keep the business viable.”
The notice was previously updated in March to set out options employers have in addition to downsizing, such as training or “time storage” on unused work hours that will be reimbursed when business recovers.
The latest updates released yesterday were made jointly by MOM, the National Trade Union Congress (NTUC) and the Singapore National Federation of Employers (SNEF) and come amid concerns that layoffs may increase due to the Covid pandemic. -19. The first six months of 2020 saw 11,350 cuts.
The notice reiterates that layoffs should be a last resort. In the event that layoffs are unavoidable, employers must select staff for firing based on objective criteria such as merit, and preserve those with skills to support business sustainability.
And they should take a long-term view of their manpower needs, including the need to maintain “a strong Singapore core.”
“Layoffs generally should not result in a reduced proportion of local employees. This can be achieved by retaining proportionally more premises during a layoff exercise,” the guidelines say.
When business activities recover later, employers must make a “deliberate effort” to strengthen their local workforce by hiring locals when they can.
Singapore will remain open and welcoming to foreigners who can help grow the economy and create good jobs for locals, the guidelines add.
Local employees are also encouraged to acquire new skills from foreign employees with specialized skills, while companies must strive so that these skills can be transferred to locals.
The updated notice emphasizes the need to safeguard Singapore’s core business during downsizing exercises, said NTUC Deputy Secretary-General Cham Hui Fong.
He also urged companies to notify unions in advance so that the Labor Safety Council and the NTUC Employment and Employability Institute (e2i) can quickly help affected workers.
The update also details how employers can conduct a downsizing exercise in a responsible and sensitive manner. These include notifying workers ahead of time and in person.
Affected employees must also have the time and space to adjust to the news of their layoffs before they are asked to leave the workplace. If necessary, counseling support should be offered to laid off employees.
If the company is unionized, the relevant unions must be informed of any downsizing plans in advance, usually one month before the affected employees are notified.
To guide employers, the notice now also includes a checklist of responsible downsizing practices.
A MOM spokesperson said yesterday that of the few complaints received about discriminatory cuts, investigations show that employers were able to demonstrate measures taken to keep Singapore’s core. “If companies act irresponsibly in cost saving measures or layoffs, the government will consider denying them future government support or suspending their work pass privileges,” the spokesman said. “Until now, the authorities have not had to.”
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