Retrenchment in Singapore: How NTUC supports workers before, during and after job loss

• NTUC and its unions provide comprehensive support to affected workers, from early engagement with companies to job placement assistance. They emphasise retrenchment as a last resort and encourage early involvement with employers to explore alternatives to redundancy.

• During unavoidable retrenchments, unions represent workers to negotiate fairer terms and benefits, using collective agreements to secure enhanced support packages.

• Unions can support workers in different ways, including halting retrenchment exercises if processes fall short or recovering unpaid salaries after abrupt company closures.

• NTUC’s e2i collaborates with unions to provide job matching and transition support, helping affected workers secure new employment.

• The Tripartite Jobs Council will focus on providing targeted support for at-risk workers amid concerns of job displacement by artificial intelligence.

• Joining a union early grants workers’ access to training subsidies and other benefits, equipping them to better handle workplace challenges and retrenchment.

Retrenchments in Singapore are at a record high since COVID-19.

At 4,500, 2Q 2026 marked the highest quarterly retrenchment figure since 4Q 2020, according to Ministry of Manpower data, driven mainly by business restructuring in selected sectors.

Concerned that you might be next on the chopping block? NTUC’s support network is here to help you navigate the difficult journey.

From unions securing fairer outcomes to NTUC’s e2i (Employment and Employability Institute) providing career support and job opportunities, you’ll receive support at every phase of the journey to move forward with dignity, confidence, and clarity.

Before retrenchment: Unions push for early engagement and alternatives

When it comes to business reorganisation or restructuring, the union perspective has always been this: Retrenchment should be treated as a last resort to prevent workers from losing their jobs.

This view is also emphasised in the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, a guideline outlining responsible practices for employers.

Through regular engagements with management partners, NTUC and its unions may already be aware of the company’s situation.

If not, mandatory retrenchment notification can help NTUC, e2i, and other partners step in early. Employers with at least 10 employees must inform MOM of their plans within five working days after affected workers have been notified.

With early involvement, unions can work with the company to explore alternatives to layoffs, such as redeployment, retraining, job redesign or other cost-saving measures.

Unions will also have more room to negotiate fairer terms for affected staff and prepare transition support, helping to reduce worker uncertainty and anxiety.

During the recent GovTech Singapore exercise where the statutory board cut 93 roles, early union engagement allowed the Amalgamated Union of Statutory Board Employees (AUSBE) to propose alternatives to retrenchment, such as retraining and redeployment opportunities.

This showed how unions can move upstream to support workers while options are still being explored, not after the decision to retrench is finalised.

During retrenchment: Unions negotiate for fairer outcomes

When workforce cuts become unavoidable, the union’s role becomes even more critical — stepping in to represent workers, negotiate fairer terms, and secure the best possible outcomes.

To strengthen negotiations, unions usually rely on the collective agreement (CA), a legally binding agreement between both parties that provides union members with terms, conditions, and benefits, typically more comprehensive than an employment contract or employee handbook.

Unions use the CA to bargain for better retrenchment payouts and support packages for workers and members, often pushing for additional support beyond what’s covered in the agreement.

In the GovTech case, AUSBE secured extra benefits like a three-month ex gratia or goodwill payment and a pro-rated performance bonus.

Unions can also intervene when a retrenchment exercise is mismanaged.

In 2020, unions halted Eagle Services Asia’s retrenchment exercise after concerns were raised that the process fell short of union norms. Negotiations later led to improved support, including an additional training grant for affected workers.

Sudden closures: Unions help workers recover what they are owed

Most times, companies involve unions when they plan to reduce workforce numbers.

However, there have been instances where businesses close suddenly, leaving workers with unpaid salaries and little to no support.

Often, these companies aren’t unionised but may have union members among them. This is where unions can step in to represent members, negotiate better retrenchment support, and help them through the transition.

For instance, when Twelve Cupcakes’ employees were owed salaries after the bakery shut down abruptly in October 2025, the Food, Drinks and Allied Workers Union guided affected members on the claims process, eventually helping them to recover 50 per cent of the outstanding amounts. 

After retrenchment: NTUC’s e2i helps workers move into new jobs

For many workers, the hardest part is worrying about when (and if) the next job will come.

This is where NTUC’s e2i comes in, working with unions to provide affected workers with dedicated job-matching support, including career coaching, interview preparation, and curated job fairs.

Unions’ deep understanding of workers’ profiles helps e2i deliver stronger job matching, along with continued career guidance and transition support even after workers start their new roles.

This was clear in the Jetstar Asia case. After the budget airline announced its closure in July 2025, The Singapore Manual and Mercantile Workers’ Union (SMMWU), e2i, and other partners organised a job matching exercise for over 500 affected workers, offering more than 1,400 openings. Within two months, around 90 per cent of retrenched cabin crew and pilots had secured jobs or job interviews.

Tripartite Jobs Council: Targeted support for displaced workers

Amid worker concerns over AI replacing their jobs, NTUC mooted the formation of the Tripartite Jobs Council to harness the strength of the tripartite partners — the Government, NTUC and the Singapore National Employers Federation (SNEF) —to help workers upskill, support business transformation, and redesign jobs.

Officially established in July 2026, the council’s key focus area is providing targeted upstream support for at-risk worker segments and jobs.

Conclusion: Join a union before you need one

The cases of GovTech, Eagle Services Asia, Twelve Cupcakes and Jetstar Asia show that retrenchment support is not just about the payout. It is about giving you comprehensive support you need from the day you receive the letter to the day you walk out the door.

By support, we mean having a union by your side to protect your rights, negotiate better retrenchment benefits, and help you secure your next role.

But you’ll want to join the union sooner, rather than later.

Here’s why: Before a layoff or any workplace problem happens, you can receive up to $500 worth of training subsidies to upskill and improve your chances of nailing the next job. There are also other benefits like progression initiatives and lifestyle privileges.

Facing retrenchment or workplace uncertainty? Speak to your union early or approach NTUC’s e2i for career guidance and job matching support.