I WOULD like to applaud Singapore's labour movement for its role in ensuring that companies adopt retrenchment as a last resort during this recession.

However, higher-income and non-unionised workers are not given much protection under labour laws.

Recently, a close friend was retrenched after having worked at a company for about 30 years.

As her contract did not state anything about retrenchment benefits, she did not receive any ex gratia payment for her years of service.

She approached the Ministry of Manpower (MOM) and was told that as her basic monthly salary was above $2,000 and the contract mentioned nothing about retrenchment benefits, the ministry was unable to help.

The only alternative for her would be to seek legal action against her former employer. This is an unfortunate situation and I am sure she is not alone in experiencing it.

Many like her would just accept it as they feel it is not worth their spending money to seek legal redress.

I hope MOM would take a more active role and help employees in such a situation.

It could make it mandatory for employers to pay a minimum ex gratia amount to retrenched staff.

Mr David Soh Poh Huat

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