Retrenched in Singapore? What to Do in Your First Week

When someone calls me right after being retrenched, they're rarely calling about their CV. They're shocked, sad and demoralised, and what they're going through looks a lot like grief. I've seen it many times as a headhunter and career coach, and I know it from the inside, because I've been laid off myself, more than once.

I can't take away that first-week fog. But a few decisions in those first days, like what you sign and what you ask for, are hard to undo. This guide is the checklist I wish I'd had.

General information, not legal advice. Rules and schemes as at September 2026.

Day 1: Sit on it

Don't sign in the room. Take the letter home and find out what's normal in the market before you respond. This is the last time you'll ever negotiate with this company, so use it. Even if the offer looks generous, say one month per year after ten years, you can't judge that without knowing the norm, so do the research.

Size matters too. Large companies usually have a reputation to protect and tend to handle this properly. With a small company, you may have less to work with, so your research and preparation matter even more.

Two practical things for day one. Ask for the terms in writing. And write down the date and time you were told, who told you, and what was said. That date matters: an employer with a Singapore-registered business and at least 10 employees must notify MOM within five working days after telling any employee about their retrenchment.

Days 2 to 3: Work out what you're owed

Your package usually has several parts. Beyond any retrenchment benefit, employers still owe notice (or salary in lieu), pay for unused annual leave, and outstanding salary and CPF up to your last day.

The retrenchment benefit is the part people get wrong. It isn't set by law. The prevailing norm under the tripartite advisory is two weeks to one month of salary per year of service, depending on the company's finances and industry. In unionised firms where the collective agreement fixes the amount, the norm is one month. Employees can negotiate for more. MOM's eligibility line is two years of service. Below that, an employer can still offer a goodwill (ex gratia) payment. As an illustration, someone earning S$5,000 a month with six years of service might receive somewhere between S$15,000 and S$30,000.

The norm is widely followed. MOM has said that around nine in ten eligible employees received a benefit between 2020 and 2025, and roughly eight in ten of them got at least two weeks per year of service. Use the norm as your benchmark when you negotiate.

Ask for these in writing:

• A retrenchment letter stating your last day, notice period or pay in lieu, the benefit amount and its payment date.
• A final payslip covering outstanding salary, pro-rated leave pay and accrued contractual bonuses.
• A certificate of employment. It's optional, but worth requesting.

If you think a "retrenchment" is really an unfair dismissal, act quickly. Wrongful dismissal claims must be filed with TADM within one month of your last day of work. Managers and executives generally need at least six months of service to file one. Salary-related claims, which include contractual entitlements, must generally be filed within six months of your last day if you've left the company.

Days 4 to 5: Line up support

The main scheme is SkillsFuture Jobseeker Support. It offers up to S$6,000 over six months to involuntarily unemployed Singapore Citizens and PRs aged 21 and above. You must have averaged S$5,000 or less in gross monthly income over the past 12 months, worked in Singapore for at least six of those 12 months, live in a property with an Annual Value of S$31,000 or less, and not have received a payout in the past three years. Payouts depend on completing job-search activities each month, are capped at your previous average monthly income, and stop the month after you're re-employed. If you earned above the S$5,000 cap, you won't qualify, so plan your runway without it.

For career coaching and job-matching, start with the government agencies. Workforce Singapore and SkillsFuture Singapore merged into the Skills and Workforce Development Agency (SWDA) on 1 July 2026, so you may see either name on older pages. NTUC's e2i also offers career support.

If you're on an Employment Pass or S Pass

Your pass is tied to your job. MOM's guidance says the employer must cancel an Employment Pass within one week after your last day of notice. If you're still in Singapore, your employer can request a Short-Term Visit Pass (STVP) so you can stay while you look for work. MOM's employer page says an STVP can give up to 90 days, though many older guides quote 30, so check the end date on your own STVP. Ask your employer to request it, and if you need more time, your ex-employer applies to MOM for an extension of stay. Passes linked to your Employment Pass, such as Dependant's Passes, are generally cancelled with it, so check what that means for your family. S Pass rules are similar, but confirm the details with MOM.

Week 1: Put yourself out there

Here's what I tell people:

1. Don't hide. Being retrenched is not the taboo it used to be. So many people are open about it now. It's easier to put yourself out there and get all the help you need than to keep it to yourself.
2. Remember it's a short phase. In the bigger scheme of your life, people will never remember it.
3. Get help. Depending on who you approach, that could be Singapore agencies like SWDA (formerly WSG) and e2i, career coaching agencies, or placement agencies. They can help you clean up your LinkedIn, get testimonials, and ask for referrals.
4. Tell your friends and network what's going on, and let them help.
5. No one to call? Take it as a lesson for next time: be generous with your network while you're doing well, because you can't build one in a hurry.

Sources:

• MOM, Mandatory Retrenchment Notifications: mom.gov.sg/employment-practices/retrenchment/mandatory-retrenchment-notifications
• TAFEP, Responsible Retrenchment Practices: tal.sg/tafep/employment-practices/retrenchment/responsible-retrenchment-practices
• MOM, Wrongful Dismissal: mom.gov.sg/employment-practices/termination-of-employment/wrongful-dismissal
• TADM, Know your options: tal.sg/tadm/know-your-options
• MOM, Managing employment disputes at TADM: mom.gov.sg/employment-practices/managing-employment-disputes
• MOM, Cancel an Employment Pass: mom.gov.sg/passes-and-permits/employment-pass/cancel-a-pass
• Jobseeker Support portal: jobseekersupport.mycareersfuture.gov.sg
• e2i, Jobseeker Support: e2i.com.sg/individuals/skillsfuture-jobseeker-support-scheme