Business

Are Companies Allowed to Terminate Work Contracts During the COVID-19 Pandemic?

Well, yes, companies can go for retrenchment if they are unable to pay employees. However, this has to be done only in extreme cases where companies have tried everything else but is still short on necessary funds. If retrenchment takes place, employers still ought to treat workers with respect. 

The employee should get a notice, and the retrenchment benefit depends on the agreement between these two parties. The years of service will be a significant factor while deciding the retrenchment bonus

Support from the Government for Employee Wages

If companies want, they can take assistance from a Government funding called the Job Support Scheme. Employers can receive finances for up to 75% of the first $4200 monthly wages of each employee during the months of April, May, July, and October. The support for April and May will be 75%, while the funding for July and October can be between 25% and 75% depending on the sector where the business operates.

A Special Focus for Low-Wage Professionals

Companies have been urged to give priority to low wage employees. They will need to pay more retrenchment compensation, and also refer workers to the E2i and WSG. The company can also consider joining the NTUC Job Security Council. 

What is the Process?

For the termination of work contract of COVID-19 Employees in Singapore, the company should provide a notice to the MOM if they have ended contracts of five or more employees during a six month period. This has to be done within five days of the fifth employee ending his or her contract.

What About Other Reasons for Work Termination?

Some employers can also be asking if Staff Termination During COVID-19 is possible for other reasons. Well, you can still end contracts with your workers in case of poor conducts, work performance, or breaching of the work contract.

Leave a Reply