Recourse for Failure to Pay Retrenchment Benefits

Retrenchment is a stressful experience for any employee, but it can be made even more painful if the employer fails to pay due retrenchment benefits. This was the case for Alice, who worked at a tech firm and was retrenched amidst the pandemic. Her employer did not pay her retrenchment benefits, citing financial difficulties. Alice struggled to make ends meet and pay her bills, and felt helpless.

Fortunately, Singapore employment laws provide recourse for employees in such situations. The Ministry of Manpower (MOM) has issued guidelines on the steps employees can take when employers fail to pay retrenchment benefits. These guidelines apply to all employees under the Employment Act, which covers most workers in Singapore.

• Step 1: Make a written request for payment to the employer, stating the amount of unpaid retrenchment benefits and the deadline for payment.
• Step 2: If the employer does not respond or refuses to pay, engage the Tripartite Alliance for Dispute Management (TADM) for mediation. TADM is a neutral third party that aims to resolve employment disputes through mediation.
• Step 3: If mediation fails, file a claim with the Employment Claims Tribunal (ECT) within one year from the date the payment was due. The ECT is a specialized court that handles salary-related disputes between employees and employers.

It is important to note that employees should keep records of their retrenchment benefits and communication with the employer, as these will be required in the mediation or ECT process. Employers who fail to pay retrenchment benefits can face fines and legal action.

In conclusion, the legal recourse for unpaid retrenchment benefits in Singapore involves three steps:

1. Make a written request for payment to the employer
2. Engage TADM for mediation
3. File a claim with the ECT if mediation fails

Reference: MOM on the recourse if employers fail to pay retrenchment benefits according to the Employment Act

For further readings, visit the MOM website or search for "retrenchment benefits" on the Ministry of Manpower website.

Article Category: Employment Law