Notice Of Retrenchment Letter Template for Singapore

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Key Requirements PROMPT example:

Notice Of Retrenchment Letter

"I need to draft a Notice of Retrenchment Letter for 15 employees in our Singapore manufacturing facility, with a standard severance package of one month's salary per year of service, and last working day set for March 31, 2025."

Document background
The Notice of Retrenchment Letter is a crucial document used when companies in Singapore need to reduce their workforce due to business restructuring, economic conditions, or organizational changes. This document must strictly adhere to Singapore's employment laws and MOM guidelines, particularly regarding fair consideration and responsible retrenchment practices. The Notice of Retrenchment Letter should clearly state the reason for retrenchment, notice period, last day of employment, and comprehensive details about severance packages and final payments. It serves as both a legal requirement and a formal communication tool, protecting both employer and employee interests during the retrenchment process.
Suggested Sections

1. Letter Header: Company letterhead, date, and employee details

2. Notice of Retrenchment: Clear statement of retrenchment decision and business justification

3. Last Day of Employment: Specific termination date and notice period details

4. Retrenchment Benefits: Details of severance package and payment terms

5. Final Payment Details: Breakdown of final salary, unused leave, and other entitlements

Optional Sections

1. Outplacement Support: Details of any career transition assistance, used when company provides such support

2. Reference Letter Offer: Mention of providing references, included for long-serving employees

3. Re-employment Rights: Specific details for employees aged 62 and above

Suggested Schedules

1. Benefits Calculation Sheet: Detailed breakdown of final payments and benefits

2. Handover Checklist: List of company property to be returned and pending tasks to be completed

3. Employment Assistance Package: Information about career transition support services if provided

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore, covering termination procedures, notice periods, salary payments, and treatment of benefits including annual leave during retrenchment

MOM Tripartite Guidelines: Official guidelines on Managing Excess Manpower and Responsible Retrenchment, including mandatory retrenchment notifications for companies with 10+ employees and best practices for conducting retrenchment exercises

Fair Consideration Framework: Framework ensuring fair treatment of local employees and non-discriminatory practices during retrenchment exercises

Central Provident Fund Act: Legislation governing CPF contributions and their treatment during employment termination, including obligations for final CPF payments

Employment Claims Act 2016: Legal framework for employment dispute resolution and employee rights for claims related to retrenchment

Notice Period Requirements: Statutory minimum notice periods based on employee's length of service that must be observed during retrenchment

Retrenchment Benefits Framework: Guidelines on severance package calculation, including retrenchment benefits and final payment computations

Company Property Protocol: Requirements for documenting and managing the return of company property during the retrenchment process

Progressive Wage Model: Compliance requirements with Progressive Wage Model if applicable to the industry sector

Re-employment Obligations: Special considerations and obligations for retrenching employees aged 62 and above under Singapore's re-employment legislation

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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