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Saturday, September 12, 2026

Carrying out redundancies – a comparison of Asian jurisdictions - HRD America

Employers in Singapore, Thailand, China, and Indonesia must follow certain rules

BY Fatim Jumabhoy and Nurul Ayu Fajarani 15 Jun 2023

In our continuing Asia comparative series, we focus on several key issues when carrying out redundancies across Singapore, Thailand, Mainland China, and Indonesia.

The decision to carry out redundancies involves a myriad of considerations.

Below, we compare issues across the region, from selection criteria, protected classes of employees and providing alternatives to redundancies.

Are there statutory selection criteria requirements?

Singapore: No. However, there are government advisories such as the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment which provides that employers should adopt objective and consistent selection criteria.

The Advisory also emphasises the need to maintain a strong "Singaporean Core" and to ensure that redundancies should not result in a reduced proportion of local employees.

While the Advisory is non-binding, employers are expected to comply with it.

Mainland China: No, but employees should generally be selected based on fair and objective criteria.

Thailand: No, but employees should generally be selected based on fair and objective criteria.

Indonesia: No, but employees should generally be selected based on fair and objective criteria.

An expert offers five tips and external sources of help for a better retrenchment exercise.

Are there classes of employees who are protected from...



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