Document background
The Retrenchment Letter serves as a crucial document in Singapore's employment landscape when companies need to reduce their workforce due to economic conditions, restructuring, or operational changes. It must be drafted in accordance with Singapore's Employment Act and the Tripartite Guidelines on Managing Excess Manpower. The letter should clearly communicate the termination decision, provide appropriate notice periods, detail final payments and benefits, and ensure compliance with fair consideration practices. This document becomes necessary when companies have exhausted all other options to manage excess manpower and must proceed with retrenchment as a last resort.
