The prevailing norm is to pay a retrenchment benefit of between 2 weeks to 1 month salary per year of service, depending on the company’s financial position and the industry. In unionised companies where the amount of retrenchment benefit is stated in the collective...
Retrenchment is the reduction of costs or spending in economic times of difficulty. Due to the COVID-19 pandemic, many businesses that are classified as non-essential services were forced to close during the circuit breaker (21st April to 1st June 2020). This has a significant impact on the businesses.
I believe the retrenchment exercise by Resort World Sentosa has been shocking to many. The exercise started in May 2020. From what I have read from the news, Resort World Sentosa has offered half a month salary for every year of service for those that took up the voluntary retrenchment scheme in May.
Below is extracted from Ministry of Manpower’s Responsible Retrenchment: