I have been retrenched. Am I entitled to retrenchment benefits and who should I approach?
Last updated 02 Mar 2026
Under the Employment Act, retrenchment benefit is not compulsory. The amount depends on what is stated in your employment contract or collective agreement (for unionised companies). If there is no provision, it must be negotiated between you (or your union) and your company.
If you have worked for less than 2 years in the company, you are not entitled to retrenchment benefits. The company may provide an ex-gratia payment out of goodwill.
The Tripartite Advisory for Managing Excess Manpower and Responsible Retrenchment recommends a payout of retrenchment benefit at 2 weeks to 1 month salary per year of service, depending on your company’s financial position and the industry. Read more on responsible retrenchment.
If you are not paid retrenchment benefit according to your employment contract or collective agreement (for unionised companies), you may file a claim at TADM within 6 months from the last date of employment.
If you are a union member in a unionised company, you may approach your union for help to negotiate an agreement with your employer. If you are a union member in a non-unionised company, you may contact NTUC at 6213 8008 or via NTUC's Workplace Advisory Service so that they can assess and help you under the Tripartite Mediation Framework where applicable.
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