Exit Support Package and other government support for winding down
The payout is intended to help nightlife businesses who had not been allowed to operate, defray a portion of their retrenchment benefit to be paid to affected local employees during this challenging period. It is not intended to replace employers’ contractual obligations.
Employers are still expected to honour RB amounts which are provided for in the employment contract, memoranda of understanding or collective agreement (for unionised companies) which are contractual entitlements. If unable to do so due to the financial circumstances, employers should negotiate with the unions/employees on a mutually acceptable retrenchment benefit package.
Employers are strongly encouraged to adhere to the advisories, including the provision of RB to help affected employees while they search for employment.
We strongly encourage employers receiving the exit package to provide retrenchment benefit beyond the limits of the financial support provided by the Government.
Employers are strongly encouraged to adhere to the advisories, including to provide retrenchment benefits to help all affected employees, both local and foreign.
In the event of a dispute, employees who wish to seek assistance can approach MOM for assistance. Employees with contractual claims (i.e. retrenchment benefit spelt out in the employment contract or collective agreement) for retrenchment benefit will be referred to the Tripartite Alliance for Dispute Management to file their claims. More details can be found here.
Only companies which are exiting the industry are eligible for the retrenchment benefit support. Companies which are currently participating in the pilot or suspending operations temporarily will not qualify.
The exit support package is intended for companies which are exiting from the industry. Companies which took up the exit support will not be allowed to participate in the pilot or reopen as a nightlife business for the next 12 months. Companies should consider the options and make their own business assessment before application.
Workers who have been involuntarily unemployed due to retrenchment or contract termination, or are currently experiencing salary reduction due to cost-cutting measures, may apply for the COVID-19 Support Grant by the Ministry of Social and Family Development (“MSF”) here. More details of the grant, including the eligibility criteria can be found on MSF’s website here.
Workers may also refer to Workforce Singapore (“WSG”)’s website here for resources on seeking alternative employment.
No. Employers should continue to fulfil existing statutory/contractual obligations using their own finances. Failure to pay salary constitutes an offence under the Employment Act.
Employers must give due notice or pay in lieu of notice and fulfil all other contractual obligations e.g. annual leave encashment, notice pay, before ending the employment relationship.
Employees who wish to seek assistance with their retrenchment can approach MOM. Employees with contractual claims (i.e. retrenchment benefit spelt out in the employment contract or collective agreement) for retrenchment benefit will be referred to the Tripartite Alliance for Dispute Management to file their claims.
The company’s licenses should be terminated, and the company’s name should be struck off from the register of the Accounting and Corporate Regulatory Authority (“ACRA”). The company should submit (i) proof of rescission of operating licenses and (ii) notices and filings indicating commencement of strike-off or wind-up process (e.g. strike off notice from ACRA) within 3 months of receiving the letter of offer. Please refer to the ACRA website here for details on closing a company in Singapore.
The company may use the ex-gratia payout of $30,000 to defray costs associated with the cessation of business, including but not limited to early lease terminations costs, reinstatement costs, and labour-related costs.