SINGAPORE: A Singaporean employee took to social media to share that her boss had given her a harsh ultimatum, despite dedicating 20 years of her life to the company.
On Wednesday (Feb 19), she posted on Reddit’s ‘Ask Singapore’ forum, explaining that her direct boss recently presented her with two options: she could either leave her job without receiving any retrenchment renumeration or stay on but endure a staggering 50% pay cut.
Feeling blindsided and betrayed, she turned to the online community for advice, writing, “Is this legal? Anyone has personal stories/ professional advice? I’m considering heading to Tripartite, would that be helpful?”
“Find another job. It will be hard but that’s the only route.”
In the comments, many Singaporean Redditors pointed out that companies aren’t legally required to give retrenchment payouts, which unfortunately puts employees in a tough spot. Some also strongly advised her not to accept the 50% pay cut, saying it would be unfair and impossible to sustain in the long run.
They argued that even with such a big pay reduction, she would still be expected to do the same amount of work, essentially giving away half her pay for nothing in return.
Meanwhile, her boss would benefit the most from this arrangement, as they wouldn’t have to step in to pick up extra responsibilities or go through the trouble of hiring and training a replacement.
One said, “Yes it’s legal. It’s unethical and irresponsible, but completely legal. Check your notice period – they will have to pay you for that period. Hopefully it’s long. Use that time to find a new job. I don’t recommend taking the 50% cut – the firm has proven not to be a good employer.”
Another added, “Unfortunately the 50% paycut is the reward for your 20 years of loyalty. Normally they will just retrench you with no other options. In my opinion, don’t work for 50% if you can help it, but no shame in taking the money if your finances are in the red.”
Still, there were a few who suggested that she accept the 50% pay cut and remain with the company, at least temporarily. They explained that staying employed, even at a reduced salary, would provide her with a stable income while she actively searched for a better opportunity.
One commented, “Take the pay cut and do less work, what are they going to do? Fire you? Find another job. It will be hard but that’s the only route.”
Employer’s responsibilities during a retrenchment exercise
According to the Ministry of Manpower (MoM), employers need to settle all outstanding payments such as salaries, unused annual leave, and notice pay on the employee’s last working day.
In addition, employers are also encouraged to extend the notice period if possible or assist retrenched employees in finding new job opportunities through referrals, career counseling, or job fairs.
As for retrenchment benefits, employees with at least two years of service are eligible to receive compensation, while those with less than two years may receive an “ex-gratia payment out of goodwill.”
However, the ministry emphasizes that the amount of retrenchment benefit ultimately comes down to what’s stated in the contract or collective agreement.
If no amount is specified, the employer and employees or their union will need to work it out through negotiations. Most companies typically offer between two weeks to a month’s salary for each year of service, while unionised companies usually provide one month’s salary per year of service.
Featured image by Depositphotos (for illustration purposes only)