What to Do If You Are Retrenched: 7 Tips to Get Back on Your Feet

Getting retrenched can be a stressful and challenging experience. The uncertainties of when the next job will come, and navigation of the job search process can be even more daunting. However, knowing what to do if you are retrenched can help you to bounce back more quickly.

Luckily, the Singaporean government offers many resources to help workers get back on their feet. And the local employment situation is looking up. Case in point, the number of dismissals in Singapore is rapidly decreasing, from 26,110 in 2020 to 8,020 in 2021. Furthermore, as of the first quarter of 2022, 71.5% of retrenched workers found new jobs within six months, according to statistics from the Ministry of Manpower (MOM).

Given these numbers, if your company has laid you off, the odds of finding another job are in your favour. While it is normal to feel discouraged, think of this as an opportunity for a fresh start. Here is our guide to recovering and finding a job after retrenchment.

What Is Retrenchment?

According to MOM, retrenchment is the “termination of employees due to redundancy or reorganisation of the employer’s profession, business, trade or work.” It is often the last resort for businesses struggling to stay afloat. It’s also worth noting that any time an employer fires a worker with no plans to replace them soon, MOM considers that a dismissal.

Retrenched Employee Benefits and Rights

The Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) states that when carrying out retrenchments, businesses must avoid discriminating against employees based on gender, race, age, marital status, religion, disability, or family responsibility. If you suspect your company laid you off based on these factors, you can file a wrongful dismissal claim with the Tripartite Alliance for Dispute Management.

Minimum Notice Period

The Employment Act obligates employers to give sufficient notice before terminating an employee. At the same time, TAFEP encourages employers to give workers a longer notice period than what is required by law.

Minimum Notice Period Requirement Under the Employment Act

Retrenchment Benefits

The first thing to do if you have been retrenched is to review your employment contract or, if your company is unionised, the union’s collective agreement with the company. This is because Singaporean law does not require companies to pay retrenchment benefits unless it is stipulated in the employment contract or collective agreement.

If your contract includes retrenchment benefits and you have been working with your company for over two years, you are eligible to receive financial assistance. Even if you have rendered less than two years of service, your employer might still opt to give you a retrenchment benefit ex gratia, or out of goodwill.

The amount you receive depends on what is in your contract. If your contract does not specify this, then negotiate with your employer. According to MOM, employers usually pay two weeks to one month’s worth of wages per year of service. For unionised companies, the collective agreement usually stipulates one month’s worth of wages per year of service.

Take note that if your company implemented salary cuts, they should use your salary before the cut to calculate your retrenchment benefit. In addition to this, there’s no need to pay Central Provident Fund contributions from your retrenchment benefit. Lastly, if you are laid off while pregnant, you are entitled to maternity leave benefits as well.

If you wish to dispute your retrenchment benefits, MOM has a useful table indicating who you should contact for help and by when you should do so, depending on the circumstances of your employment.

Finding A Job After Retrenchment

1. Take some time to recover.

Don’t make the mistake of rushing back into the job market. After all, you’re likely to experience the five stages of grief after being laid off. Deal with and move past these emotions so that when you look for your next job, you can promote yourself confidently and answer interview questions with a clear head.

Right now, the best thing to do is take care of your mental health first. Consider speaking with a therapist to process this experience. Take the time to enjoy your hobbies and spend time with your family. This way, you’ll feel energised and ready to take the steps toward getting back on your feet.

2. Take stock of your finances.

It will help determine how long you can take a break before seeking work. List down your expenses and see if there are areas in which you can reduce your spending. For example, you can make your coffee at home instead of buying a latte every day. Try to limit your expenses to those that are unavoidable, such as utility bills, groceries, and loans.

3. Reassess your career goals.

In a sense, you have a fresh start. Take this opportunity to review your goals. Think about what you liked and disliked about your previous job and company. Identify your strengths, weaknesses, and transferable skills. Do you enjoy working in your field, or is it time to make a career switch ?

Consider the state of your industry as well—what is the job market like? Is the industry growing or shrinking? Are there plenty of jobs available, or do you see yourself competing for limited openings? Getting the lay of the land will allow you to conduct your job search more efficiently. Who knows, you might even find yourself transitioning into Singapore’s booming tech industry.

4. Take the opportunity to upskill.

Adopting a growth mindset will always serve you well. Take this opportunity to work on your areas for improvement or learn new skills. Whether you need to strengthen your soft skills or learn how to code, there is a wealth of online workshops and learning materials you can access for free. You can also head to the government website MySkillsFuture and sign up for training programmes using the Skills Future Credit available to all Singaporeans who are 25 years old and up.

5. Activate your network.

Ask your colleagues about job opportunities, and look for a mentor who can give you sound career advice. You can also attend networking events—after all, recruiters often attend these functions to find fresh talent. You can also ask former bosses and colleagues to give you a good reference.

6. Get retrenchment counselling.

The Singaporean government offers resources to help retrenched employees rejoin the workforce. You can visit one of Workforce Singapore’s Career Centres to request a career coach or avail of their career matching services. The National Trades Union Congress’s e2i programme also provides retrenchment support ranging from career coaching to employability workshops.

7. Jump back into the job market.

Now is the time to update your resume and Jobstreet profile. Make sure to research the companies you’re applying to and tailor your resume and cover letter for each opening. Practise your answers to common interview questions, and be prepared to answer questions about your retrenchment.

There’s no need to hide that you got laid off—recruiters and interviewers will be more understanding than you think. You can talk about what you learned from the experience and the steps you have taken to improve yourself.

To increase your chances of getting an interview, send many applications. You can even dedicate specific hours of the day to looking for openings and customising your resume.

How to Avoid Getting Retrenched

Retrenchment is often due to factors out of our control. However, you can still reduce your chances of getting laid off by making yourself indispensable. You can do this by upskilling and staying up-to-date on industry trends. For example, if you work in digital marketing, then put in the time and effort needed to become a social media expert.

If you’re a manager, understand the technical aspects of your employees’ roles instead of simply telling your team what to do. Make sure you stay relevant by being open to learning new technologies and new ways of doing things.

Apart from this, it’s also necessary to maintain good relationships with your colleagues and supervisors. After all, who wants to retain an employee who’s hard to work with? Ensure you’re an asset to the company and someone your manager would fight to keep.

Retrenchment is only a temporary setback. The important thing is to remain optimistic as you look for your next role. Now that you know what to do if you are retrenched, start the process of finding a job by updating your Jobtreet profile and check out our Career Resources for more job search tips. Make sure to download the JobStreet app on Google Play and the App Store for easier access.