Employers involved in a global restructure should be aware of significant changes to Singapore employment and immigration laws in recent years, particularly those relating to employment related rules, such as notice periods, terminations, process and termination payments.
These changes include the introduction of a three-tiered workplace dispute process from 2027, the removal of a limit on the number of years a work permit holder can be employed in Singapore and updates to employee retirement and re-employment age.
For businesses which have entered into a collective bargaining agreement or memorandum of understanding with a Singapore trade union, there are usually additional consultation and payment obligations.
Restructuring often leads to layoffs or redeployment of employees across different locations. Under Singapore law, there is a presumption that an employee’s role has been made redundant if the employer has no intention to replace the role. When considering the redundancy process and severance payments, there is a need for employers to consider not just the statutory and contractual requirements, but also guidelines which are issued by various bodies such as the Tripartite Alliance for Fair Employment Practices. Enforcement action may be taken against the relevant employer if these are not complied with.
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