MOM weighs 'action' against firms that can afford retrenchment benefits but refuse to pay: Jasmin Lau
Singapore's Ministry of Manpower is considering administrative actions against companies that refuse to pay retrenchment benefits despite having the financial capacity to do so. This follows a post-pandemic high in layoffs during the second quarter of 2026.
Why it matters
The move highlights government efforts to protect worker welfare and enforce labor norms in a tightening economic environment.
Of the 12% of employers that did not pay retrenchment benefits to their employees, only about a fifth said they had financial difficulties, said Acting Manpower Minister Jasmin Lau.
Listen Summarise MOM considers administrative actions against firms able but unwilling to pay retrenchment benefits. Most non-payers are smaller firms. Retrenchments rose to a post-pandemic high in Q2 2026, mostly due to restructuring, disproportionately affecting PMETs and older workers, with re-employment rates declining to 54.9% within six months. About four in 10 retrenched workers took pay cuts upon re-employment, with a median wage drop of 25 per cent. AI generated
SINGAPORE – The Ministry of Manpower (MOM) is weighing possible “administrative action” against employers that are able but unwilling to pay retrenchment benefits despite repeated engagements and warnings, Acting Manpower Minister Jasmin Lau told Parliament on Oct 6.
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