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Firms warned against disguising retrenchments

Jun 04, 2020 | 🚀 Fathership
"If the retrenchment benefit is spelt out in the employment contract or collective agreement, the employer has a clear obligation to pay. He cannot sidestep it by calling the retrenchment something else."

"If a company is found to have disguised their retrenchments, MOM can and will consider withdrawing government support like JSS and suspending their work pass privileges," she added, referring to the Covid-19 Jobs Support Scheme that co-pays salaries to help firms retain workers.

Mr Saktiandi Supaat asked, among other things, how common it was for employers and recruiters to ask job seekers to declare their last drawn salary and whether there are studies on how this might affect people's employability and their salary.

MANPOWER MINISTER JOSEPHINE TEO. Mrs Teo said there is no rule requiring job seekers to comply with requests for their last drawn salary, nor can employers insist on it.

If employers use last drawn salary to screen applicants, they risk losing out on good candidates who are prepared to adjust their salary expectations, especially in today's context.