Your contract decides — read it before anything else

Because retrenchment benefits in Singapore are contractual rather than statutory, the order of checking is different from most countries.

One: your employment contract

The terms outline the details of the agreement and are binding on both parties. This is your first recourse.

Look for a retrenchment or severance clause specifically.

Two: company policy

Followed by internal policies or other regulations. Some companies have a written retrenchment policy even where the contract is silent.

Three: any collective agreement

If a union covers your workplace, the collective agreement may provide for retrenchment benefits — and unionised firms typically pay a full month per year of service.

Four: the market norm as a reference

Two weeks to one month of salary per year of service, per MOM's Tripartite Advisory.

It is a recommendation, not a mandate, but it is the benchmark against which an offer can be assessed.

Five: the rest of the settlement

Retrenchment benefit sits on top of:

• Notice pay, or the notice period worked
• Final salary to your last day
• Unused annual leave encashed
• Any pro-rated bonus or AWS

Check the tax and CPF treatment

Notice pay is taxable but attracts no CPF. Retrenchment benefits are generally neither taxable nor CPF-attracting. Leave encashment and pro-rated bonus are taxable.

The breakdown affects your actual take-home, so ask for it itemised.

Six: was the MRN filed?

Employers with at least 10 employees must notify MOM within five working days. That filing is what triggers taskforce support for you.

If you have under two years

You are outside the prevailing norm, though some employers give an ex-gratia goodwill payment at their discretion. It is worth asking.

If there is a dispute

MOM or TAFEP can mediate. For larger amounts, an employment lawyer can advise on your contractual position.