Employees Asked To Reapply For Overseas Jobs Still Considered Retrenched: MOM & NTUC
Workers in Singapore whose positions are removed due to restructuring are considered retrenched, even if they are given the opportunity to apply for new roles elsewhere within the same company.
The clarification comes from both Singapore’s Ministry of Manpower (MOM) and the National Trades Union Congress (NTUC), following concerns surrounding fashion retailer H&M’s decision to relocate its regional headquarters from Singapore to Kuala Lumpur.
As part of the move, employees across the affected region were invited to reapply for positions under the company’s new structure. However, NTUC stressed that offering workers a chance to apply for alternative positions does not change the nature of a retrenchment if their original jobs in Singapore have become redundant.
NTUC Raises Concerns Over “New Opportunity” Framing
NTUC said it is concerned about situations where employers describe reapplications for relocated or newly created positions as “new opportunities” while existing Singapore-based roles are effectively being eliminated.
According to the labour movement, when an employee’s position in Singapore no longer exists because it has been relocated overseas or made redundant, the worker’s employment relationship with the local company comes to an end.
In such circumstances, the situation is recognised as a retrenchment regardless of whether the employee subsequently applies for another position within the organisation.
The union noted that workers should be given clarity and transparency about their employment status rather than having retrenchments framed differently.
MOM Clarifies Retrenchment Rules
MOM echoed NTUC’s position, stating that if an employee loses their job because the role has become redundant in Singapore, this constitutes a retrenchment.
The ministry added that this remains the case whether the employee applies for an overseas position, secures the role, or is unsuccessful in the application process.
The clarification provides guidance for employees affected by corporate restructuring exercises where jobs are shifted outside Singapore.
Employers with at least 10 staff members are required to notify MOM of retrenchments within five working days after informing affected employees.
H&M Says It Will Support Staff
Responding to the concerns, H&M said it remains committed to supporting employees throughout the restructuring process and will continue to meet all obligations under local employment laws.
Employees across the affected East Asia region are reportedly able to apply for 178 positions under the new structure. Only four of those roles appear to remain based in Singapore, primarily in legal functions.
Workers who do not secure a position through the reapplication exercise are expected to leave the company through what H&M described as a “mutual separation” process that complies with local labour regulations.
MOM also confirmed that H&M has submitted the required mandatory retrenchment notification within the prescribed timeframe.
What This Means For Singapore Workers
The latest clarification serves as a reminder that companies cannot avoid retrenchment obligations simply by asking affected staff to apply for other positions after eliminating their existing roles.
For employees, the key factor is whether their original position in Singapore continues to exist. If the role has been removed, relocated overseas, or made redundant, the situation is generally regarded as a retrenchment under Singapore’s employment framework.
The issue has sparked discussion among workers, particularly those employed by multinational corporations that may increasingly relocate regional functions to lower-cost locations while maintaining operations across Southeast Asia.