SingaporeMy company is retrenching. What benefits am I entitled to?
Under Singapore law, retrenched employees are not automatically entitled to statutory severance pay, but employers must comply with contractual or collective agreement terms, and may be expected to provide ex-gratia retrenchment benefits based on tripartite guidelines.
What the Law Says
The Employment Act does not mandate severance or retrenchment benefits for private-sector employees. Entitlements depend on employment contracts, collective agreements, or employer policy — though tripartite guidelines strongly encourage fair and consistent practices.
Section 45 of the Employment Act 1968 states that the Act does not confer any right to retrenchment benefits unless expressly provided for in a contract of service, collective agreement, or company policy. This means there is no legal requirement for employers to pay severance, redundancy pay, or other retrenchment benefits solely by virtue of the Employment Act.
However, employers must still comply with other statutory obligations — such as giving proper notice (or salary in lieu), settling all outstanding wages, and making mandatory CPF contributions up to the last day of employment. Employees with at least two years of service may also qualify for the CPF Retrenchment Grant (up to S$4,500), administered separately by the CPF Board.
Statutory TextNothing in this Act shall be construed as conferring on any employee any right to retrenchment benefits unless such right is expressly provided for in his contract of service or collective agreement.
— Employment Act 1968, s. 45 — Retrenchment benefits
What to Do
Review your employment contract and company handbook for any retrenchment benefit clauses.
Check if your union has a collective agreement specifying retrenchment terms.
Confirm notice period requirements (typically 1–4 weeks depending on tenure) or request salary in lieu.
Apply for the CPF Retrenchment Grant (if eligible: ≥2 years’ service, retrenched on/after 1 Apr 2020, and employer contributes to CPF).
Seek advice from Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) or Ministry of Manpower (MOM) if benefits appear inconsistent with tripartite guidelines.
Sources
Same Question, Other Jurisdictions
Germany
Canada
Ireland
UK
India
South Korea
JapanNot legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.