The Exit Management Handbook

ADRIAN CHOO & SZE-YEN CHEE
Candid Creation Publishing

First published October 2019
Copyright © 2019 Adrian Choo and Sze-Yen Chee
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THE EXIT MANAGEMENT HANDBOOK

The Definitive Guide to Compassionate Retrenchment Practices
Authors : Adrian Choo and Sze-Yen Chee

Publisher : Phoon Kok Hwa
Cover Design : Ryanne Ng
Editor : Zoe Toh
Layout : Corrine Teng
Published by : Candid Creation Publishing LLP
167 Jalan Bukit Merah
#05-12 Connection One Tower 4
Singapore 150167
Tel/Fax : (65) 6273 7623
Website : www.candidcreation.com
Facebook : www.facebook.com/CandidCreationPublishing
Email : enquiry@candidcreation.com
ISBN : 978-981-14-2874-6
National Library Board, Singapore Cataloguing in Publication Data
Names: Choo, Adrian. | Chee, Sze-Yen.

Title: The exit management handbook : the definitive guide to compassionate re-
trenchment practices / Adrian Choo & Sze-Yen Chee.
Description: Singapore : Candid Creation Publishing LLP, 2019.
Identifiers: OCN 1119729327 | ISBN 978-981-14-2874-6 (paperback) |
Subjects: LCSH: CDownsizing of organizations. | Personnel management. | Employ-
ees--Dismissal of.
Classification: DDC 658.3134--dc23
“One of the secrets of inner peace
is the practice of compassion.
It is not enough to be compassionate...

You must act.”
The Dalai Lama

CONTENTS
Acknowledgements............................................................... vii
Foreword................................................................................. ix
Preface..................................................................................... xi
1 Recent Trends in Retrenchment................................ 1

2 What Is Compassionate Exit Management?............. 9
3 Why Is Compassionate Exit Management
Important?................................................................. 17
4 The Different Aspects of Retrenchment................... 23
5 Planning and Preparing.............................................. 31
6 Training the Managers................................................ 41
7 Do’s And Don’ts When Conducting Notification
Meetings..................................................................... 53
8 Being Seen as Caring................................................... 57
9 Supporting the Leavers............................................... 63
10 Supporting the Stayers and Moving Forward.......... 71
11 Personal Sharing by Experienced HR Leaders........ 79
v
vi THE EXIT MANAGEMENT HANDBOOK
Afterword................................................................................ 89
About Career Agility International..................................... 91
CareerCareTM Outplacement Support Services.............. 93
Resources
Annex A: Tripartite Guidelines on Mandatory
Retrenchment Notifications.................................... 97
Annex B: Tripartite Advisory on Managing Excess

Manpower and Responsible Retrenchment.......... 101
Annex C: Eligibility and Requirements for

Personalised Employment Pass............................... 115
ACKNOWLEDGEMENTS
A book on a topic as complex as this is never a solitary effort.

We would like to thank the numerous contributors who have
spent time sharing their experiences with us.
First and foremost, we would like to thank Dr Edwin Choo for

the extensive proofreading and editing effort rendered.
We would also like to recognise the contributions of our Human

Resource (HR) Partners who have shared their experiences,
especially the candid and heartfelt advice given in the last
chapter. Their encouragement and words of wisdom form the
basis of this book and it would not have been possible without
them.
1. Lesz Sikorski, Human Resource Vice President

2. Ravi Bhogaraju, Global Head (Talent & OD)
3. Carmen Wee, Chief Human Resource Officer
4. Donna Pang, Head of Human Resource Branch Advisory Asia
5. Lim Siew Lin, Senior Human Resource Manager
vii
viii THE EXIT MANAGEMENT HANDBOOK
6. Amanda Ang, Senior Manager

7. Theresa Fitzpatrick, Human Resource Senior Vice
President (Asia Pacific)
8. Khaw Liki, Vice President (Human Resource)
9. Christina Moh, Human Resource Director (Asia Pacific)
10. Cassandra Ong, Human Resource Director (Asia Pacific)
11. Jen Hashim, Human Resource Talent Management Leader
12. Rachel Foo, Human Resource Country Head
13. Michelle Ang, Human Resource Director
14. Rajen Rao, Human Resource Director
15. Joyce Foo, Human Resource Vice President
16. Sharon Teo, Chief Human Resource Officer
17. Heng Siow Ing, Human Resource Director (Southeast Asia)
18. Tan Ai Sim, Human Resource Leader (Asia Pacific)
19. Yvonne Yeo, Human Resource Vice President
20. Dominic Lee, Human Resource Group Vice President
21. Stephanie Nash, Chief People Officer
22. Thomas Irawan, Human Resource Vice President (Asia Pacific)
23. Lim Hock Thiam, Human Resource Director
(International Operations)
24. Vivian Tay, Vice President (Group Human Resource)
25. Ajit Ayer, Managing Director (Worldwide Operations)
26. Charis Cheng, Human Resource Director
FOREWORD
Many companies today are undergoing gut-wrenching changes.

As they strive to transform, retrenchment, reskilling and
reorganisation become the norm.
Companies need leaders who are truly accountable and able

to lead these changes in a way that preserves the dignity
of employees and creates value for shareholders and the
communities in which they do business.
The challenge is that many business and HR Leaders do not

have deep expertise in the “how” of doing this well, nor do they
know how to do it in a compassionate manner. Leaders have
an obligation to leave their organisations in a better shape than
they started helming them.
However, when retrenchment, reskilling and reorganisation

are not done well, corporate reputations are damaged and trust
with employees is eroded.
ix
x THE EXIT MANAGEMENT HANDBOOK
The Exit Management Handbook provides an essential and

proven roadmap for business and HR Leaders to implement
best practices within their own companies.
The authors have drawn on close to four decades of personal

experience and insights from leading HR Practitioners to
give sound advice that is practical, relevant and will help any
organisation effectively address the challenges of complex
changes and transformations.
Vince Molinaro, PhD

Leadership Adviser and New York Times Bestselling Author of
The Leadership Contract
PREFACE
Why Was This Book Written
Retrenchment, Reduction in Force (RIF), Layoff, Redundancy

Exercise, Down-sizing, Right-sizing, Employee Offboarding,
Streamlining—there are so many ways that organisations have
come to name this increasingly common method of controlling
their operational costs or workforce sizes. In recent times, these
exercises have become so regular that they hardly cause a ripple
in the market when we hear of yet another company letting
dozens of their employees go.
Despite the global rise in retrenchment numbers, few organisations

have HR Leaders who are formally trained or experienced in the
Exit Management process because it has always been conducted
by senior HR Leaders. Many younger HR Practitioners may
not have the necessary skills to execute such projects with the
compassion and dignity the exiting staff deserve. As a result,
employees are often treated poorly during the Exit Process and
companies put their reputation at unnecessary risk.
xi
xii THE EXIT MANAGEMENT HANDBOOK
Currently, Employee Exit Management (Retrenchment) is

not taught as an HR module in university and many HR
Practitioners have not conducted such exercises before.
Therefore, they may not even know what a properly executed
retrenchment exercise looks like.
We endeavour to change that.
As a company at the forefront of

CareerCare™ Outplacement Support, we want to
improve the retrenchment practices of companies
in Singapore and challenge organisations to be
even better corporate citizens.
Adrian Choo
CEO/Founder, Career Agility International
This book was written to share the best practices, opinions and
experiences gained from our nearly four decades of experience
in the careers and outplacement industry. In addition, we
consulted veteran HR Leaders who have the expertise in
handling retrenchments to share their experiences and provide
words of advice to younger HR Practitioners. This is to better
equip them with the knowledge and awareness needed to
manage such events in future.
PREFACE xiii
Word of advice from a HR Leader
As a HR Leader, always be sensitive.

I once witnessed a retrenchment exercise where employees
were immediately escorted out of the office with no
opportunity to collect their belongings at their desks.
I thought it was very disrespectful and it really lowered
office morale for quite a long while after the event.
I have also witnessed positive situations where
exiting staff were respectfully exited with sufficient notice,
certificates of good service and even a farewell party to show
appreciation for their work contribution over the years.
Remember, as the HR champion of the organisation,
you get to choose how the process ends.
Our Approach to Writing This Book
As veteran Career Practitioners, we noticed a stark difference in

how retrenchment exercises were being conducted by various
companies. Some were performed with compassion and
dignity, whereas others ended up in ways that could only be
described as inhumane.
xiv THE EXIT MANAGEMENT HANDBOOK
CASE STUDY
During the Great Financial Crisis of 2008, a company

conducted its Exit Exercise in the lobby of its office building.
The HR set up booths at the ground floor lobby and

employees were then informed that if their access card
was not accepted at the turnstile, they were to proceed to
a desk to receive their separation package and collect their
belongings.
Needless to say, employees were extremely upset at the

impersonal manner in which the process was conducted
and many took to social media to complain.
With our extensive experience in helping clients plan and

execute these events, we have seen both best practices and
mistakes—borne out of expedience or sheer ignorance—
happen. Based on that, we will share our observations in this
book and make recommendations on the best practices.
While writing this book, we approached numerous HR

Directors, VPs and Leaders who have conducted at least three
major retrenchment exercises, to gather their input on employee
Exit Exercises. These important lessons are collated and included
in various parts of this book where we also shared the practical
aspects of planning and implementing these processes.
On top of that, we also sought the views of the Singapore

Government on what is deemed fair, reasonable and
PREFACE xv
encouraging corporate behaviour during these difficult times.

The Government has always been proactive in looking after
the interests of the professionals, managers, executives and
technicians (PMETs).
In summary, we have adopted a tri-faceted approach to develop

a more effective and balanced set of processes in planning for
and implementing a retrenchment exercise.
Designed to be compassionate, dignified and fair to the

employee, it will in turn protect your employer branding and
help your company avoid contravening any legal regulations.
Chapter One
RECENT TRENDS IN
RETRENCHMENT
Singapore’s economy has shifted tremendously over the years.

We have transitioned from a manufacturing-based industry
with low-skilled, cheap labour to a service-based industry with
higher-skilled and better-paid workers.
However, not many workers have managed to cross that

gap and even the higher-skilled ones face a fast-changing
marketplace with unpredictable demands on different
skill types. With the advent of globalisation and the influx
of foreign talents, the resulting changes to the workforce
landscape and manpower planning have been relentless.
Here are some of the key changes we have seen in the past decades.
1. Structural Retrenchment Due to

Shorter Business Cycles
Prior to 2000, the economy moved in rather predictable

six- to eight-year cycles, with recessions happening in
1
2 THE EXIT MANAGEMENT HANDBOOK
1964, 1975, 1985, 1991 and 1998. These downturns were

often accompanied by waves of retrenchments.

However, post 2000, we have seen market shocks occurring
with increasing frequency, to the point where we seem to
be moving into a perpetually volatile environment.
Thanks to the speed of technology, product cycles are

accelerating and consumers are expecting a new mobile
phone model every 12 months, even as these companies
are struggling to keep up with the pace of innovation.
As a result, the once familiar eight-year retrenchment cycle

has been replaced by an ongoing one which has become a
regular fixture in the corporate calendar.
Interestingly, even as these companies are retrenching their

staff, they are also hiring in roles that are in greater demand.
For instance, local banks have been downsizing their
branch operations teams (because of decreasing demand
for over-the-counter services), but have been aggressively
hiring digital marketers who can drive their online banking
solutions.
We are observing a shift from “cyclical retrenchment” to

“structural retrenchment”, which is pervasive, ongoing and
not disappearing any time soon.
RECENT TRENDS IN RETRENCHMENT 3
2. Changing Demographics of Workers

Being Retrenched
2.1 Younger workers
In our work as Career Coaches, we have noticed a rather

disconcerting trend of younger workers being retrenched.
These days, it would not be unusual to see those in their early
30s and even late 20s losing their jobs due to restructuring.
What is the reason for this?
An observable trend in the market is that entire divisions

are being divested, outsourced or moved to a lower-cost
location to reap economic benefits. People are being
retrenched in larger numbers than before and age is no
longer a determining factor.
In other words, retrenchment does not “age-discriminate”.

Increasingly, more young workers are being affected by it
than senior workers.
CASE STUDY
Lucas is a 28-year-old Engineer who works in a

manufacturing plant.
He was retrenched last year.
Despite his young age, he had already been retrenched

twice before, but because he is relatively “inexpensive”
to hire, he has been able to find another role quite
quickly.
“I have come to realise that the retrenchment isn’t about

me personally, but rather, the volatile industry I am in,
so I have stopped taking it personally. The talent pool is
saturated at the current moment and many of my peers
have also experienced retrenchment first-hand, but life
goes on.”
2.2 More PMETs being affected
Starting from 2011, labour market data from the Ministry

of Manpower (MOM) shows that the percentage of PMETs
retrenched has overtaken that of other categories.
Many of these PMETs hold diplomas or degrees and many

are in their 30s and 40s. In fact, the Q1/2019 labour statistics
indicate that 73.3 per cent of those retrenched that quarter
was above 40 years old. One reason for this is because of
the decreasing demand for their skills and expertise in
Singapore, as well as the influx of foreign talents who are

competing for jobs.
2.3 More “repeaters”
Anecdotally, we are seeing an increasing number of

workers who have been retrenched more than once in
their career. These workers usually hail from industries
that are undergoing intense pressure (e.g., oil and
gas, pharmaceutical) and widespread organisational
restructuring.
Many of them have been retrenched from roles where

demand for their skills is diminishing, but who still went
on to take up similar jobs where they were retrenched once

again for the exact same reason.
This leads to a point where the “repeaters” cannot find any

other roles relevant to their outdated skill sets and end up
in jobs that do not utilise their experience or training.
Economists refer to this phenomenon as “underemployment”,

which is bad for the economy.
CASE STUDY
Jack was an oilfield Engineering Manager with a major

oil and gas company.
He was retrenched back in 2012 when his company

decided to move their operations to Brunei to save costs.
He couldn’t find a similar role, so he drove a taxi for nine

months before finding an engineering job in a smaller
oilfield equipment company, but in a more junior role.
Four years later, he was once again retrenched, but

managed to get another job in a local engineering firm.
Last December, he was retrenched for the third time and
gave up trying to find another similar job. He now drives a
taxi full-time for a living.
“I don’t have any other skills apart from driving. I wished

I had ‘up-skilled’ myself years ago.”
3. Retrenchment No Longer a Dirty Word
Before 2000, retrenchment had a rather negative

connotation and carried with it some level of stigma. This
is because in those days, forced exits were often associated
with poor performers—in other words, only those who
do not make the mark were fired. It became negatively
associated with other taboo words like “sacked”, “laid-off ”,
“made redundant” and being “let go”.
Because of the negativity surrounding the R-word, some

people even preferred to opt for voluntary resignation
rather than be retrenched, foregoing any benefits in the
process.
Today, as we enter the 2020s, retrenchment or downsizing

exercises appear to have become the norm. Synonyms today
include “right-sizing”, “reduction in force”, “consolidation”
and “streamlining”.
Organisational environments are less personal and

employees are looked upon as assets to be utilised and
disposed of when no longer useful. Retrenchments have
become just another tool to trim costs.
Because of the high frequency of retrenchments, the market

has become used to it and it is no longer taboo. As a result,
Hiring Managers and HR are more accepting of retrenched
candidates applying for jobs.
However, many who are affected still feel the stigma and usually
worry about their re-employability after being retrenched.
Retrenchment exercises are more complex today than

ever. They often involve multiple geographies, cultures and
across different generations as younger workers fall under
the axe.
There is no ideal retrenchment exercise, but this book hopes

to shed light on more options, ideas and best practices to
improve the process and limit the fall out.
Word of advice from a HR Leader
As HR Leaders, we need to be very agile in this

age of uncertainty, especially if your industry is a highly
disruptive one. Be prepared for sudden changes to
skills demand and keep a look out for employees with
obsolete skills, who may be at risk of redundancy.
Coach them, advise them and send them for skills retraining.
Highlight to them that ‘prevention is better than cure’
and strive towards career agility.
Retrenchments are going to keep happening and
it is your job to ensure your talent pool stays
relevant to the market your company is serving.
Chapter Two
WHAT IS COMPASSIONATE
EXIT MANAGEMENT?
Just as there can never be a happy divorce, there can never be

a truly successful retrenchment exercise. From our experience,
the best that any HR Leader can hope for is for things to go
smoothly without any major incidents.
We have personally seen companies handle retrenchment

exercises so compassionately that the affected employees
actually thanked their leaders for caring. However, we have
also witnessed a CEO who did not want to label his downsizing
exercise as a retrenchment and instead declared that all he did
was to “fire all the non-performers in one single day”.
9
CASE STUDY
A retired HR Leader with more than 18 years of HR

experience shared this with us in confidence:
“I had been handling retrenchment exercises ever since I

was a young HR Executive. To me, it was a routine job
as the manufacturing sector was in continual upheaval
and we always processed the affected employees like
any normal process.
‘Here’s your paperwork. Here’s your last working day.

Have you handed over your access card?’ I had learnt to
be as detached as my HR seniors.
However, when I was in my mid-30s, I was suddenly

called to my boss’s office to be told I had lost my job.
It was earth-shattering to me and I was similarly

processed within the allotted 30 minutes. From that
time on, I treated each and every Exit Exercise with
compassion and care.”
What then, is the definition of a “compassionate exit process”?
We would like to define it as: “The dignified and respectful

process in which the retrenched employee is notified,
managed, and supported during and after the announcement
is made.”
WHAT IS COMPASSIONATE EXIT MANAGEMENT? 11
The underlying message is one of “do unto others as you would

want done unto yourself ”.
Unfortunately, many HR Practitioners are unable to recognise

what good Exit Management practices are.
Well-managed Exits rarely happen and when they do, they

are usually kept under wraps as no company would want
to be seen taking credit for such negative events, no matter
how smoothly they were executed. One HR Vice President
compared explaining best retrenchment practices to a junior
HR Practitioner as “describing what a rainbow looks like to a
colour-blind person”.
To highlight what an ideal Exit Exercise looks like, we have

selected an interesting case study to underscore the principles,
practice and results of what we deem as a “best practice” exit
that any company can emulate.
CASE STUDY
In 2013, Toyota made the painful decision to shut down

their vehicle manufacturing plant in Altona, Australia.
This was going to affect 2,600 autoworkers in a plant that

had been a cornerstone of Altona’s economy for the past
55 years. It could mean the collapse of the livelihoods of
many—both the workers’ and the businesses’, particularly
those that supported the workers (e.g., supermarkets,
clinics, etc.)—in the town.
Toyota could have chosen the easy way out and initiated a
shutdown, leaving everyone in the lurch, but they decided
to do the compassionate thing.
In February 2014, their CEO, Akio Toyoda, flew 11 hours

from Tokyo to this tiny outskirt of Melbourne to personally
make the announcement and apologise with a humble bow.
He explained the situation to the staff and came across

as genuinely sorry that this had to be done. He assured
them that Toyota would do all that was necessary to
make sure their valued workers were cared for.
Interestingly, the biggest shocker was not the news of the

plant closure itself, but that it was going to happen 3½ years
from that day. Nobody expected to be given so much advance
notice. The reason given by the CEO was that he wanted to
make sure everyone had time to come to terms with the
change and had sufficient time to make adjustments.
The company also provided very generous severance

packages. It was said that because of the long tenure of
many staff, the average payout came close to 24 months
of salary.
In addition, staff were given equally generous Career

Transition Support services, starting as early as 12
months before their scheduled exit dates. This was to
ensure they could land good opportunities even before
they officially lost their jobs. The management initiated
the DRIVE Programme (Dedicated, Ready, Individual,
Vocational and Energised), aimed at ensuring that each
departing employee had the best support to move into a
new career or field of their choice.
As they were keeping their sales and support operations,

the company sponsored the retraining of their staff so
they could be redeployed into these operations and a
large number eventually transitioned over to those areas.
Notably, Toyota recognised that there would not be

a demand for autoworkers in Altona once the plant
shut down so they had to find “outside jobs” for their
departing staff. As these workers had very limited skill
sets, the company decided to invest millions of dollars
in re-skilling them for other vocations, such as nurses,
lawyers, commercial drivers, chefs and pilots. They
sponsored on-site courses and invited industry and
education partners to run certified programmes for these
employees.
After spending millions on the Exit Programmes, what did

Toyota achieve?
1. The company’s reputation remained intact throughout—

and indeed after—the entire plant shutdown. In fact, it set
the global standard for compassionate Exit Management.

2. Employees at other Toyota plants worldwide carried on
working with high productivity rates and quality scores,
confident in the knowledge that their company would take
care of them.

3. Due to early Career Transition support, many employees
found jobs even before they exited. This saved the company
a fair amount of money on severance packages, even
though this form of cost-saving was not their primary goal.
Retraining and redeployment of the staying staff to other
divisions also saved them severance costs as well.

4. Because of the responsible and respectful manner with
which the company treated their workers, the Australian
public continued to support Toyota in terms of car sales.
From 2015 to 2018, the brand continued to enjoy the #1
ranking in Australia, with no signs of slowing down.

5. Remarkably, the Altona plant continued producing
cars until the plant shut down in 2017. The autoworkers
managed to maintain the same level of work quality,
presumably because of the recognition, respect and care
provided by the company.
Such benevolent approach is rarely seen in the market and

inevitably costs the company money to implement. However,
when balanced against both the tangible and intangible benefits
that such a move brings, the leaders of the company can safely
look back and say that they did the right thing.1
1 For more information about the Toyota-Altona case study, please visit:
planet-lean.com/jim-womack-toyota-australia-lean/
planet-lean.com/toyota-australia-lean-thinking-securing-futures/
www.abc.net.au/news/2017-10-03/toyota-car-production-ends-altona-after-50-
years-manufacturing/9007624
Chapter Three
WHY IS COMPASSIONATE
EXIT MANAGEMENT
IMPORTANT?
Handling retrenchment exercises—or “Exit Management” as we

prefer to call it—is a very important skill needed by companies
these days. Because of the necessity to constantly transform the
workforce, employee exits have become commonplace.
However, the complexity of the new economy means that Exit

Management is also more complicated than before and has
multi-layer variables that need to be carefully considered.
A badly handled Exit Exercise puts the company at unnecessary

risks. Here are some reasons why:
1. Emotional Stress
Modern workers today face more stress and are more likely
to be emotional. With the high cost of living in Singapore,
few families can stay afloat for long without a stable source
of income.
17
It has also been noted that in Asia, men tend to take the
loss of a job more personally and are more badly affected
by it. If unmanaged, depression and suicide can happen. In
recent years, we have heard of at least two suicide cases that
were triggered by retrenchment.
Some may argue that these individuals were already

emotionally unstable and possibly already experiencing
depression, but companies have a duty of care to be more
humane and provide emotional and transition support,
along with therapy where applicable.
CASE STUDY
Our client had to exit 15 staff due to some restructuring.

However, the HR realised something important. One of
the impacted workers, a Finance Executive, had been on
medical leave for a while and was known to suffer from
depression.
The HR Director highlighted this to us and together, we

arranged for a CareerCare™ Consultant experienced in
such cases to be present during the Notification Exercise.
The company offered to pay for additional psychiatric
support for the employee if necessary, to ensure that
her mental health and personal safety during this trying
period were not compromised.
Thankfully, with the combined care and support, she

successfully transitioned into a new role fairly quickly.
WHY IS COMPASSIONATE EXIT MANAGEMENT IMPORTANT? 19
2. Social Media
The prevalence of social media today means that disgruntled

employees can take their stories online, where they are likely
to go viral.
Perceived injustices like separation benefits that are not

generous enough can easily be misconstrued as corporate
greed and amplified to a large audience at the slide of the
finger. The fallout from such bad press may be very difficult
to contain.
Badly managed Exits can become huge PR nightmares for

organisations and pose unnecessary risks to a company
already in turmoil.
3. Employer Branding
Many companies do not realise the level of damage a poorly

executed Exit Exercise can cause.
From our experience, the repercussions towards a

corporate’s reputation can often have long-lasting effects.
These include difficulties in attracting top talent and low
morale of the remaining staff.
All the years of goodwill that a company has built could be

wiped out in one afternoon.
CASE STUDY
A multinational company decided to retrench 45 staff

at a go, in the middle of January, just two weeks shy of
qualifying for their year-end bonuses.
They had also delayed the salespeople’s

commissions that were due in December, to the
second quarter so exiting staff would not be around
to collect them.
When the market heard of this, many labelled the

company as a “cheat”. Two years on, their Talent
Acquisition Department still had tremendous
difficulty getting candidates to fill roles. They still get
comments like “No thanks! I remember what you did
back then.”.
Indeed, such damage to employer reputation will take a

long time to heal, if ever.
4. Government Intervention
The Singapore Government has been known to intervene

to ensure fair treatment to all workers.
In 2017, a local company exited 57 staff and the CEO

labelled them as “poor performers”. The Manpower
Minister himself publicly lambasted the CEO, chastising
him for being insensitive and took action against the
WHY IS COMPASSIONATE EXIT MANAGEMENT IMPORTANT? 21
company, which led to many of the affected staff receiving

fair ex-gratia payments.2

5. Talent Flight
Many companies use retrenchment exercises to cut costs

and remove employees who are no longer relevant to the
organisation’s needs.
Ironically, when retrenchment exercises are carried out

in a disrespectful and unprofessional manner, it is the top
performers who decide to find employment elsewhere. As a
result, there is a secondary exodus of prime talent. This loss
of talent can be crippling for any company and leads to an
unnecessary fallout that puts the organisation at a further
disadvantage in the long run.
Due to the heightened risk of poorly executed employee

exits today, both the HR and the leadership team should be
mindful to traverse this option carefully in order to reduce
the impact on employer branding, talent acquisition, legal
risk and talent loss.
2 Yong, Charissa. “Surbana chided for publicly labelling laid-off workers as

poor performers”. The Straits Times. 8 Feb 2017. 27 Aug 2019 <https://www.
straitstimes.com/singapore/surbana-chided-for-publicly-labelling-laid-off-workers-
as-poor-performers>.
CASE STUDY
“Last year, I stepped into the office, only to be greeted by

two security personnel whom I have never met before.
I was shuffled into a room where my HR Manager and

Line Manager hastily handed me a package and told me
that due to manpower cuts, it was going to be my last
day.
I was then escorted by the guards to my desk and

instructed to point out the personal items I wanted to
take with me. They questioned me regarding some
personal stationery I had brought to the office, doubting
them to be mine and not company-issued. I saw several
other employees being similarly treated and felt very
embarrassed.
The moment I left the office, I messaged all my friends

about the nasty experience and many re-shared my story
with their contacts as well. I am certain the news about
how my company treated its retrenched employees were
spread far and wide.”
Chapter Four
THE DIFFERENT ASPECTS

OF RETRENCHMENT
Employee Exits come in different shapes and sizes. From the

occasional small-scale restructuring exercises to the large-scale
plant shutdowns, we have seen many companies do it well, but
also some that mishandle the process.
In this chapter, we discuss the nuanced differences between

each aspect of retrenchment and some of the best practices
for each case.
1. Scale and Timing
1.1 The quick cut
Some organisations that have decided on cutting headcount

prefer a single, large-scale exit, typically conducted over a
short period of time.
23
A single large-scale Exit Exercise is traumatic for everyone

involved. The corporate brand and share prices may take
a hit in the short term. If poorly managed, events like
this often invite censure from the regulators and negative
reporting in the press.
However, there are benefits to keeping retrenchment to a

single large, but painful cut.
For one, the organisation can focus on recovery the moment

it is done and that the remaining employees can be assured
that there will be no further cuts. After the initial shock,
the entire organisation can quickly move on, focusing on
the future instead of worrying about who is going to be
retrenched next.
1.2 The slow and painful way
These small-scale exercises are less dramatic and the

impacted employees have some level of confidentiality and
discretion when being retrenched.
Instead of exiting many employees in one day, some

companies plan the exits over a fixed period of time (e.g.,
over 12 months). Smaller groups of staff being exited are
less likely to be noticed by the market or the press.
Exits that are long-drawn tend to be disruptive and badly

received by the employees because the staff do not know
when their turns might come. They become unmotivated,
unproductive and will actively seek external opportunities,
often neglecting the business.
THE DIFFERENT ASPECTS OF RETRENCHMENT 25
2. Speed
2.1 Immediate exit
Some organisations prefer that impacted employees be

exited immediately rather than giving them a period of
time until their last working day.
We have personally witnessed organisations who engage

security guards to escort affected staff off the premises
immediately, without even giving them time to collect their
personal belongings, which will be delivered to them at a
later date.
This strategy is traumatic and severe, but allows the

company to avoid the risk of the exited person engaging in
sabotage.
It is also a means of preventing the exiting individual from

communicating with the remaining employees immediately
after, which could be depressing to both the departing and
remaining staff.
2.2 Protracted exit
Organisations that can foresee the restructuring may

decide to announce the impending exercise and also notify
impacted employees way ahead of the actual exit date. If the
message is properly communicated, employees have time
to prepare and transition their workload and tasks to the
relevant departments, resulting in a more seamless change.
From our experience, this is a more humane method as the

impacted worker also has time to look for another job. This
method signals that the company trusts the employee to do
the right thing.
CASE STUDY
In January 2014, a pharmaceutical manufacturing plant

was given shutdown orders from their headquarters in
the US.
The closeout date was going to be 18 months later.
The local management team had to decide between

informing the staff three months before the closeout date
(so nobody quits before that, affecting production) or to let
them know immediately.
As many of the staff were long-serving employees, the

leadership team decided to let everyone know of the shut-
down plan, as well as the timeline of support services,
retrenchment benefits and retention bonuses. These
support services include job retraining, skills upgrading
and career agility coaching.
Surprisingly, almost 90 per cent of the staff remained

until the closeout date and the factory never missed any
production target during that period.
3. Manner of Announcement
Companies have the option of making a big announcement

of their retrenchment exercise or keep it low-key.
3.1 High profile
A global announcement of over 1,500 job losses worldwide

would be big news to many, but in today’s context, the public
seemed to have gotten quite desensitised to such news.

Public announcements could result in the brand and share
prices taking a short-term hit, but they also give the world
the perception that the organisation is fair and transparent,
and prepared to make the tough decisions to help the
business survive.
A key advantage of this is that employees can hear the bad

news directly from the company’s leadership rather than
from third party sources like the news or social media.
3.2 Low-key
Quiet exits may help the company avoid bad press, but with
today’s social media, news of any major retrenchments will
spread quickly and if the company is not ready to respond,
a public relations crisis could ensue.
However, if the number of staff being retrenched is not

large (e.g., less than 15 in a 100-strong company), then
going low-key might be a wiser choice as it does not bring
unnecessary attention to the situation.
CASE STUDY
“One morning, we all turned up for work as usual and

suddenly at 9.30 a.m., an announcement was made.
We wondered what was going on and our Managing

Director informed us there was going to be a ‘headcount
reduction’ of up to 30 per cent. People around me started
crying.
We looked to HR for support, but they stood somberly

without showing any emotions at all.
As the day progressed, people were seen accompanied

by security guards to their desks to clear out their
belongings before being escorted to the front gate.
I was lucky enough not to be retrenched that day, but it

left an indelible mark on me. I was most shocked that
HR did not offer any support, but stood helplessly as the
Managers cut us down one by one.”
We feel that a large-scale exit deserves a major announcement,

but only after the event has been conducted. The business leader
should come forward to explain the rationale behind the move
and assure stakeholders and the public that things are under
control.
In these situations, meticulous planning is required to ensure

control over the messaging and corporate branding. We
strongly recommend that organisations engage a professional

consultancy firm with experiences in this area for advice.
For smaller scale exercises, low-key exits would be

recommended and extensive support for all staff is extremely
important.
Chapter Five
PLANNING AND PREPARING
Poor planning of Employee Exits can result in catastrophic

outcomes. Underestimating employee emotions, interference
from the press and actions of trade unions may jeopardise what
was originally a straightforward event.
In October 2015, Air France’s HR Deputy Director had his shirt

ripped from his back as an angry mob of unhappy staff attacked
him and his team. He had to climb over a fence to escape further
injury. The image of this shirtless man acts as a cautionary tale
for anyone involved in a retrenchment exercise.3
In large-scale exercises, the planning becomes a lot more

complex. From messaging to logistics to processes, every
element has to be considered in detail.
3 Air France executives chased from jobs talks”. BBC. 5 October 2015. 26 Aug 2019
<https://www.bbc.com/news/business-34445379>.
31
Some things to consider when planning an Exit Exercise:

1. Who Does What

Specific roles must be assigned. HR will have to take the
lead with the process and the Line Manager needs to be
present during the Notification Exercise. The message
should be delivered by the Manager and HR should be
there to answer any HR-related questions that may come
up.
If it is an immediate exit with security implications (e.g., a

trader with access to buy/sell functions), a chaperone may
have to be assigned to walk the impacted staff to his desk
to clear his personal belongings and accompany him out of
the building. We recommend an HR personnel to do this
instead of a security guard in order to avoid embarrassing
the employee.
There might also be a need for a counsellor or coach to

be on hand to provide emotional assistance and someone,
preferably a trained professional, to provide on-site support.
2. Date and Timing

Although there is no ideal day of the week to conduct an
Exit Event, we recommend either a Monday or a Thursday.
Mondays are good because it is the start of the week and it

is better to get the unpleasant activity over and done with
so the rest of the organisation can heal and move on.
PLANNING AND PREPARING 33
We rarely recommend Fridays because there have been

cases of emotionally fragile staff who did not receive the
news well and needed support, only to be stranded without
help over the weekend. That is why Thursdays are better
because exiting staff have a long weekend to recover from
the experience and for those who need support, there is still
Friday for them to seek clarification and support from HR.

Some companies prefer to do it at the start of the day,
whereas others prefer it at the end. If there are many
employees to exit, we suggest starting early and wrapping
everything up before the day is done.
We do not recommend leaving the process uncompleted at

the end of the day, only to continue the following day as it
can be very harrowing for the other employees who have
to spend the night wondering whether they will still have
their jobs the next day.
Cultural sensitivity regarding the day or period of

notification should also be considered. We have seen
European companies conduct retrenchments the week
before Chinese New Year, a time of celebration for many
Asians.
If it is an individual being let go, do find out if it is his

birthday or work anniversary as the timing would not
be ideal. We once had a candidate who fell into a deep
depression because he was retrenched a week after his wife
had passed away.
CASE STUDY
An HR Manager in a chemicals company had chosen a

particular day of the week to exit an employee.
This Technical Manager had been in the organisation for

10 years.
She called him into the room and told him the bad news
and he started crying. Startled, she asked him why and he
said, “Today is my 10th anniversary of joining the company.
I came into the room expecting a bonus or a long service
award, but instead, I got fired.”
She felt really bad and wished she had done her homework
better.
3. Messaging

Once, an airline decided to reduce their headcount in Asia
due to “extreme cost-cutting measures”. They then flew
their Global HR Director via first class around the world to
deliver and execute the bad news.
When queried, the Director explained, “In terms of

airline revenues, business class travel for staff are actually
‘opportunity costs’ as we deprive a paying business class
customer of a seat and hence, revenues. In fact, upgrading
an Executive to first class actually brings more revenue to
the company.”
We replied, “Whatever the reasons, you are retrenching for

the sake of ‘cost-reduction’. What would the staff think if
they see their senior leaders enjoying such perks?”
The messaging and actions must be congruent. For example,

retrenching staff whilst still holding an extravagant dinner
and dance event at a five-star hotel sends the wrong
message. The onus is on the leaders of the organisation to
explain why such austerity measures are being taken.
Clear, transparent and empathetic messaging is important

to ensure that the employees understand the reason for the
headcount reduction. Often, this messaging is not directed
at the departing staff, but at those who are remaining so
they can come to terms with the exercise.
Appearances are also important when presenting the case

for reduction to the employee union and the press who are
always hungry to jump at corporate greed and extravagance.
CASE STUDY
Recently, a global bank retrenched a large part of their

staff worldwide.
Unfortunately, on Notification Day, as teary-eyed staff

were told the bad news and were packing their things, it
happened that some Senior Management had arranged
for their high-end tailors to drop by for fittings for some
pricey business suits.
Exiting staff were aghast at the poor juxtaposition of

both events and were even more distraught. The CEO
made particular mention of this incident, chastising the
leaders responsible for this insensitive gaffe.
4. Understanding the Profile of Impacted

Staff
In Singapore, almost one in five (22 per cent) workers are

either an Employment Pass (EP) or Work Permit (WP)
holder.4 5
When the company retrenches these employees, HR has

to be mindful that they may only have up to 30 days of
residency in Singapore after their last working day. This
means that they have a very narrow window they have
4 “Foreign workforce numbers”. Ministry of Manpower. 14 March 2019. 26 Aug 2019

5 “Summary Table: Labour Force”. Ministry of Manpower. 31 January 2019. 26 Aug
2019 <https://stats.mom.gov.sg/Pages/Labour-Force-Summary-Table.aspx>.
to find alternative employment before their visa expires

and must leave the country. Even if they do exit and
return again (commonly known by expatriates as “doing
a visa run”), their landlords “are legally not allowed” to
lease their property to them anymore. This adds to their
logistical woes, especially when there is family involved.
Many compassionate HR Practitioners provide an extended

one to three months notice period to give their EP/WP staff
more time to arrange logistics. Some even provide an extra
half year of hospitalisation and medical insurance coverage.
5. Staging
On the Notification Day itself, the environment needs to be

as controlled as possible to ensure matters run smoothly.
We have experienced a poorly timed fire drill in the midst
of such sensitive meetings!
For larger Employee Exit Exercises, here are some areas HR

Practitioners need to take note of:
• A lot of advance planning is needed regarding process flow

(i.e., what time the notification meeting is to be held, where
it will be conducted, etc.), people flow (i.e., who goes into
which room, etc.) and other logistics. We have seen poorly
planned events that add to the frustration of the departing
staff and distress to those remaining.

• All exit paperwork need to be prepared beforehand and
salary calculations have to be fully computed. The impacted
staff are entitled to full details on hand when they are
notified and HR should be able to clarify or justify all the
numbers presented in the documents.

• Ensure that the notification room is private and away from
the rest of the staff. It would be best to avoid “fishbowl”
rooms with transparent glass walls that expose the individual
to unnecessary stares from others. One client originally
proposed that the notification meeting be conducted in the
staff pantry which was next to the espresso machine. We
very quickly advised against it.

• The rooms need to be supplied with water and boxes of

tissue paper. The comfort level and ambience should set a
sombre and respectful mood. Always expect the worst and
do not underestimate the level of emotional response from
departing staff.

• Some companies will arrange for an Employee Assistance
Professional to be on-site, just in case. We had a client who
arranged for medical, as well as security personnel, on
hand as a precautionary measure.

• We have seen well-organised companies arrange for boxes
or bags for staff to pack their belongings and this is often
helpful, especially if they have personal items to clear out
the same day.

• When conducting mass exits for companies in remote
areas, taxis and/or other transportations may also need to
be arranged, especially if employees are non-residents (e.g.,
someone who commutes daily to work from Malaysia). It
would be unreasonable for them, in their state of distress,
to have to coordinate travel back home by themselves.

• There may need to be a town hall meeting before—and
sometimes after—the event, where the Business Leader
addresses the remaining employees. Hence, venues may
need to be carefully selected and perhaps even speech-
writing support is required to ensure the right words are
used.
6. Notifying the Authorities and Unions

Under Singapore law, companies that have at least 10
employees are required to notify the MOM if five or more
employees are retrenched within any six-month period.6
There are forms on the MOM website that the HR Manager
can complete.
If the company is unionised, the Management needs to

inform its respective unions. There is usually a notice
period pre-agreed with the union stated in the Collective
Agreement, but if this is not defined, it is advisable to
inform them early.

Despite the Collective Agreement, some companies try to
delay notifying the union to as late as possible to minimise
leakage of information to the market or employees.7
6 “Mandatory Retrenchment Notifications”. Ministry of Manpower. 19 June 2019. 26

Aug 2019 <https://www.mom.gov.sg/employment-practices/retrenchment/manda-
tory-retrenchment-notifications>.
7 “If a company is carrying out retrenchment, how long a notice period should it give
the union and affected workers?”. Ministry of Manpower. 31 March 2019. 26 Aug
2019 <https://www.mom.gov.sg/faq/retrenchment/if-a-company-is-carrying-out-
retrenchment-how-long-a-notice-period-should-it-give-the-union-and-affected-work-
ers>.
Chapter Six
TRAINING THE MANAGERS
Managers are responsible for conveying the Notification

to their staff and need to be trained on how to handle this
meeting well.
Many inexperienced HR Executives and Managers may fumble

during this critical and sensitive process, which is why we
authored this book.
Even though HR will be there to provide support and

documentation, it is likely to be an emotionally charged and
anxious meeting, so the Managers should be mentally prepared
and preferably trained by Career-support professionals on the
best strategies to execute the meeting smoothly.
41
Here are some practical tips for managers:
1. Plan Ahead
Ideally, the Supervisor delivering the message should

be notified of the exercise and trained at least three days
before the event. He should be familiar with the proper exit
process and how to handle impacted staff. He needs to be
briefed on the messaging, the logistics and expectations of
the scale or scope.
To prevent information leaks, some companies inform the

notifying Manager only on the day itself. This is unfair and
signals distrust of the Manager. It is also traumatising as he
may need time to internalise what is going on. This may
result in a poor execution of the exit.
TRAINING THE MANAGERS 43
CASE STUDY
“We were only notified of the retrenchment exercise the

day before the event itself. It was emotionally shocking
as we never anticipated it and I was told that half my
team was affected.
As I had never conducted such meetings before, I was

in a state of panic. I tried to push HR to do it instead, but
they said that as the leader, it was my responsibility to
take charge of the process.
Fortunately, HR had arranged for a Consultant to brief

us on the process. The session lasted two hours and
included role playing, which made me less uncomfortable
with the job at hand.
The consultant was very experienced and shared how

to manage each possible response. This was helpful
because the next day, I felt better equipped to handle the
situation.
I believe my exiting staff appreciated the professional

manner in which we handled the meeting and it went a
lot smoother than I expected.
The training was indeed helpful.”

2. Stick to the Plan
Once the process and timings have been confirmed, keep

to it.
The meeting should last no longer than 15 minutes. Often,

the impacted staff does not want to hang around longer
than that either, preferring to step outside to speak to their
spouse or partner in private.
Inform then move on to the next Notification Meeting. All

parties would want to close this unpleasant day as swiftly
as possible.
Deviating unnecessarily from the original plan could lead

to delays that could prolong the process and cause even
more distress to everyone involved.

3. Know Their Role
Managers should not engage in small talk at the beginning

of the meeting. They should come straight to the point in a
serious but compassionate manner.
Notifying managers should also be told:
• They have only one task: To inform the staff that the
role no longer exists. They are not expected to explain in
detail why that particular staff was selected and not some
other colleague or to justify the decisions behind it.

• They are in no position to offer a better solution

or be allowed to bargain or negotiate the terms of
departure.

• They are not to commiserate with the affected staff and
badmouth the company.

To reiterate, the Notifying Manager’s task is simply to
convey the message and close the loop.
CASE STUDY
Susan was feeling really uncomfortable having to let her

Sales Executive, Thomas, go. He had worked with her for
five years and they were like good friends.
During the Notification Meeting, she kept apologising to

Thomas and was on the verge of tears. Thomas was
equally distressed and asked if he could work part-time
or on a full commission basis until he found a job.
Out of guilt, Susan agreed, hoping to negotiate with her

MD later.
As expected, the Managing Director turned her down and

Thomas had to be let down twice in a week, putting him
through another round of unnecessary disappointment.
4. Keep to the Script
The prepared script should be given to the Notifying

Managers the day before the Exit Exercise and they should
be instructed not to digress from the script.
A sample script could be as follows:
“As you may have heard, the company is facing some

challenges in the industry and we need to make some changes
to our organisation structure. The Management Team has
spent a lot of time streamlining operations and has tried our
best to retain as many staff as possible, but unfortunately,
your position does not exist in the new structure. As a result,
we regret to inform you that we have to let you go. Here is the
severance package and your last working day is the 30th of
this month. Do you have any questions for us?”
Sometimes, the Manager feels bad and tries to improvise,

resulting in the wrong information being conveyed. That
could be more distressing to the individual or could
even open the company up to unnecessary legal action.
A Manager once made an offhand comment during the
meeting that “for this exercise, more locals than foreigners
were being retrenched”. It immediately led to negative
backlash from the Union regarding the perceived unfairness
of the selection process.
5. Handling Emotions
The Manager needs to be trained to expect the following

emotions:
5.1 Shock and surprise
From our experience, the first response that an impacted

employee exhibits is shock and surprise. For many, getting
retrenched is sudden and unexpected, especially for those
who have been in the company for a very long time.
Reactions like “Are you serious?” or “Is this a prank?” come

up frequently and the manager’s role is to keep an even tone.
He may have to reiterate the fact that this is a retrenchment
exercise and it is really happening.
5.2 Denial and bargaining
After the initial shock wears off, there may be a stage of

denial. Comments like “I can’t believe this is happening to
me!”, “Why am I getting the axe and not Bobby? He’s the
one who’s not performing” and “Can we discuss working
on a part-time basis?” are not unusual.
Remind the Manager that he has no authority to make

concessions or propose alternatives during the meeting, no
matter how reasonable they may sound. If he really thinks
a suggestion makes sense, he may table it privately with the
leadership team after the Notification Meeting, but it would be
immensely unfair to make any promises to the affected individual.
A correct response to a bargaining comment would be a firm

“I understand this news is difficult and Senior Management
has already considered all alternatives. Unfortunately, there
is no other way around this” or very simply, “The decision
is final.”
5.3 Anger or hostility
Never underestimate the emotional response an exiting

employee can demonstrate.
There have been cases where managers have been assaulted

by their staff. We have heard of a China-based plant where
factory workers detained their HR Managers on the premises
for days whilst they negotiated with HQ for better terms.
When faced with an angry individual, Managers are

advised to stay calm and resist the temptation to mirror
their emotions. An angry accusation like “You’ve always
had a grudge against me, so this is your revenge!” should
not be met with a similarly angry response.
Instead, listen and allow the individual to vent his anger.

Do not argue with any of the points raised and never get
defensive. Remember that they are going through a difficult
moment and have a lot to process. Being compassionate
and kind will go a long way for everyone.
5.4 Grief
Grief is a very common response and often, nothing much

can be done about it.
Grown men have been known to cry. Being retrenched is

never a good moment in anyone’s life. Therefore, the best
response is to display compassion and understanding.
Offering a box of tissues or a drink helps. Allow them time
to grieve and come to terms with what just happened.
Be patient. Wait until the individual has composed

himself before carrying on with the details. It would be
highly insensitive to talk whilst the person is wailing
uncontrollably. The information is probably not being
absorbed anyway.
The worst thing to do is for the Manager to try to cheer the

staff up by making light of the situation and saying things
like “Well, you’ve always wanted a vacation, so this would
be perfect!” or minimising the individual’s emotions with
“Hey, this is probably for the better anyway. You should be
thankful.”
We advise everyone involved to keep all opinions and

comments to themselves and remember to be professional.
CASE STUDY
Last year, we were called to facilitate a Notification

Exercise for an Operations Director who had been in the
company for 14 years.
He was a burly man, standing over 6-feet tall and was known
to have a very bad temper, often seen banging tables during
discussions. Even the HR was terrified of him and asked
me to see how we could help “manage” his exit.
After he was notified rather hurriedly by the nervous HR

Manager, he was ushered into my room as I began to
help him process what happened.
He stood in front of me with his burly frame… and started

to cry. I offered him a box of tissues and we spoke for over
two hours.
5.5 Joy
Yes. It is possible for an exiting staff to exude joy during an

Exit Exercise. We have seen people smile from ear to ear
upon receiving their notification papers.
Some of them have been eager to leave the company, but

were patiently waiting for a generous payout as many of
them have been in the organisation for a long time and the
retrenchment benefits would be rather sizeable.
These are genuine cases of “happy campers” and often,

many who remain in the company may be quietly envious
of them.

However, we have also come across cases where the employee
is smiling on the outside to mask the disappointment he is
feeling inside and very often, there is no way to tell what he
is truly feeling. Therefore, never assume the feelings behind
the smile.
It is never advisable to congratulate a seemingly happy

employee who has just lost his job as it is presumptuous
and can wreak havoc on their emotional state.
CASE STUDY
We were asked to support the exit of an Office Manager,

age 59, who had been with the company for 36 years.
When she was told her services were no longer needed,

she broke down and cried for a good 15 minutes.
When she came around, she shared, “I don’t know what I’m
going to do for money now that I don’t have a job anymore.”
We reminded her that her company had awarded her

a month’s severance benefit for every year served, in
addition to six months’ gardening leave (a period where
the employee is put on full salary without having to turn
up for work) plus bonuses accrued which amounted to
almost four years’ worth of salary!
In all, the total was greater than what she would have
earned had she stayed till retirement and now, she could
focus on the more important things in life, like spending
time with her grandchildren.
Suddenly, she stopped crying and started to smile, “That’s

true... It’s almost like striking the lottery, isn’t it?”
Chapter Seven
DO’S AND DON’TS

WHEN CONDUCTING
NOTIFICATION MEETINGS
Four Do’s
1. Be Compassionate and Understanding
Managers should conduct the meeting with compassion

and understanding, and imagine himself in the exiting
staff ’s shoes. They would appreciate the dignity of a
respectful exit.
If the individual gets angry or sad, be professional and

caring. This is a difficult time for them, so be patient.
2. Be Focused and to the Point

Do not ramble. Do not make small talk. Do not digress.
Keep to the script, provide all the relevant information
needed and proceed to the next individual.
53
The impacted staff is already in a state of shock and unable

to process any extra details. Help him by relaying only the
facts needed for the situation at hand.
3. Listen Carefully and Observe Keenly
During the meeting, it is both the Notifying Manager and

HR’s responsibility to listen closely to what the individual is
asking and provide the appropriate answers.
It is also necessary to keenly observe the mood or

response on display, especially if the employee has a
history of emotional or mental stress challenges. Should
something be amiss, the matter needs to be escalated to
Senior Leadership as soon as possible, for the safety of all
involved.
4. Ensure the Individual Understands What Is Happening

and Knows the Next Steps

Always check with the impacted staff if he understands the
situation and whether he has a grasp on the necessary facts.
Often, this moment is a hazy one for them and they are
unable to register details.
Some clients provide their exiting employees with an

FAQ (Frequently Asked Questions) sheet with relevant
information and helplines listed so they can refer to it after
the event.
It is often ideal for HR to remain available on-site for the

rest of the day, should further questions pertaining to HR
DO’S AND DON’TS WHEN CONDUCTING NOTIFICATION MEETINGS 55
matters (e.g., incentive computation, housing arrangements,

EP extensions, insurance coverage, etc.) arise.

Make sure the exiting staff know what the next steps are so
they can move on quickly.
FOUR DON’TS
1. Don’t Extend Beyond 15 minutes
Remember: The Manager’s role is to notify, ensure

understanding and provide separation details. The longer
the meeting drags on, the more likely something that
could be misconstrued might be said and things can get
complicated. If additional time is needed, HR should
accompany the individual into a separate room to manage
the situation personally.
2. Don’t Discuss Others

One common question that is often asked is: “Am I the only
one?” or “Who else is affected?”.
Their curiosity is natural, but never discuss the details of

other colleagues or departments with the departing staff as
this is a breach of privacy. A simple answer like “We are
here to discuss your situation and how we can help you.
Let’s focus on that for now” would suffice.
3. Don’t Be Dismissive

Remember that the objective at hand is to be compassionate.
An individual once asked “How does this affect the project
I’m working on?” because he was concerned about his
client’s well-being. His Notifying Manager responded with
a gruff, “Don’t bother about it. Just think of how you are
going to enjoy your break!”
Every question that the impacted staff asks is important to

him and he may ask the same question several times as he
may be in a state of shock. Be patient and kind.
4. Don’t Solve Problems
For many, this is usually borne out of sympathy. We may

try to make small talk to lighten the situation, attempt to
be humorous to cheer the other party up or even make
suggestions that we think could be helpful.
The Managers’ role is to notify, not problem-solve. When

the dust settles, they can be as helpful as they want, but not
during the notification meeting itself.
Chapter Eight
BEING SEEN AS CARING
Fairly or unfairly, every organisation is being judged during an

Exit Exercise.
They are being judged by the public who is always on the

lookout for bad behaviour by large corporations.
They are being judged by the press, eager for a story to go to

market with.
Even the Unions and Government are watching and observing,

noting if there are any infractions that they can correct or
educate.
However, the most important stakeholder scrutinising the

organisation is the employees, especially the ones remaining.
This group is particularly critical to operations because they are
the ones to be retained.
57
Some actions that the company can take to protect their

image during this trying period have to do with “messaging”
and “optics”, ensuring that the organisation is controlling the
narrative and is also seen doing the right thing, as well as doing
things right.
CASE STUDY
“When my company retrenched us last year, I still

remember the support and care that they displayed.
They had explained the rationale for the cuts very clearly
and the CEO who made the announcement came across
as very sincere and apologetic.
The company had arranged for Outplacement Consultants

on-site to answer any questions we had and HR was
clearly available to address any concerns we had.
They had even set up ‘Care Corners’ for any staff who did
not feel well, to rest and be attended to.
The overall feeling of the day was one of sadness, but

seeing the extra arrangements that the company had
put in to minimise our distress lessened the emotional
impact of the day.”
BEING SEEN AS CARING 59
1. For the Greater Good
Firstly, the message from Top Management should be loud

and clear: The changes are necessary for the greater good of
the company and all remaining employees.
The economic landscape is changing very quickly and those

who cannot adapt fast enough will soon be left behind.
Entire industries and technologies have grown obsolete in
recent years and unless the organisation can reinvent itself,
there will be no jobs for anyone in time to come.
Because of these forces affecting how business is conducted,

workforce transformation is inevitable.
2. Retrenchment Was Not the First Option
It must be stressed to the various stakeholders that reduction

in headcount was not the first option for cost reduction.
Businesses may often look at cutting manpower costs as

the quickest and easiest way to improve the bottom line.
Although this is true in the short term, the longer term
repercussions can return to haunt them.
To improve the bottom line, a local transport utility

operator shed an army of experienced engineers who were
the only ones who understood how the systems worked.
This resulted in massive system failures and stoppages years
later when they discovered that no one knew how these
legacy systems operated.
In order to avoid appearing like they are sacrificing their

employees at the altar of profitability, Management should
go to market with a narrative that retrenchment was not the
first option. The announcement should also mention that
other cost-saving methods like new systems, equipment
and technology, etc. are also being deployed.
It would also be helpful to highlight that even though a

large number of employees were being retrenched, many
were actually redeployed into other roles whilst others were
re-skilled for new ones. Some were even given options to
work in other divisions or in other countries.
3. Assurance That the Exit Process

Will Be Compassionate, Dignified and
Respectful
Exit Exercises are always unpleasant events. Companies

have to take steps to ensure that the process is conducted
with utmost compassion, empathy and dignity to all
involved.
This means that all stakeholders must be properly trained

and briefed, and that the process is professionally planned
and managed from start to finish.
Even on the Notification Day itself, the process needs to be

seen as being respectful. All staff involved must be serious.
BEING SEEN AS CARING 61
A client told us that the Outplacement Consultants they

engaged to support them could be heard laughing out loud
at some private jokes while waiting in the next room. He
had to tell them to act more professionally.
4. Assurance That Ample Support Will

Be Given to Those Who Are Exiting
As there is a lot of uncertainty during an Exit Exercise, the

company needs to announce that the exiting staff will be well
cared for. This could be in terms of reasonable separation
packages, as well as generous career transition support.
Many affected staff may not know what “Career Transition”

support is, hence some explanation may be required.

5. Other Austerity Measures to Be
Introduced

After the cruel cut, the organisation should be seen adhering
to their principle of all-round belt-tightening.
A US multinational company (MNC) shed close to 20 per

cent of their workforce due to cost reduction, gave their
CEO and leadership team million-dollar bonuses and hefty
salary increases less than three months later.
The only conclusion that one can draw from such a

retrenchment exercise is that the company only cares for
the wallets of the Upper Management and not its people. A
mass exodus of talent subsequently happened as a result of
this poor judgement.
Companies that undergo workforce transformation and

are compelled to exit staff are always under scrutiny. It is
important for them to understand the value of employer
branding and how it needs to be preserved in this age of
social media and highly mobile talent pool with little
employer loyalty.
Chapter Nine
SUPPORTING THE LEAVERS
According to the Holmes and Rahe stress scale that measures

stressful events in life, losing one’s job ranks at #8, below “death
of a family member” and “undergoing divorce”.8
We believe that being suddenly retrenched would rank even

higher, due to the unforeseen and unplanned nature of the exit,
and the trauma of not knowing when the next job will come
along.
On the day of the notification meeting, the employees may

feel extremely emotional, as if they have been kicked out onto
the street. The employee now has no job, no income and no
insurance.
Organisations should consider the level and elements of support

for the impacted employees.
8 ”Holmes, T. H. and R. H. Rahe. “The Social Readjustment Rating Scale”. Journal of

Psychosomatic Research 11:2 (1967): 213-218.
63
1. Offer a Fair Package
The definition of a fair package is highly subjective.
Singapore’s labour law does not mandate a fixed benefit

schedule. Rather, it suggests a guideline of “two weeks to
one month” for every year of service, depending on the
company’s financial standing or industry norm. Because of
the lack of clarity and penalty, we have seen companies on
both ends of the spectrum.
As a current market guide, many multinational companies,

depending on the industry, provide one month salary for
every year of service, but may limit it to a maximum of
certain number of months, ranging from eight to 18 months.
The smaller local businesses (SMEs) tend to provide one

to two weeks of severance salary for every year of service.
Very often, it is expected of the employer to provide Career

Transition (or Outplacement) support to their affected staff
so they can find another job quickly. We will discuss this in
greater detail in point 3.
SUPPORTING THE LEAVERS 65
CASE STUDY
There was an MNC that conducted a major retrenchment

exercise some years back.
The CEO instructed the HR to keep separation costs to

a minimum and they decided not to give any severance
package at all.
The HR decided to forego any benefits and retrenched

the workers without compensation, apart from their
contractual leave days and notice periods. They even
refused to give any commissions that were due.
By global agreement, all staff worldwide were entitled to

Outplacement services, but the company elected to keep
this secret from their staff, just to save costs.

CASE STUDY
There was an airline that was forced to shut down their

cabin crew operations in the country.
Many of their employees have worked there for many

years, several even crossing their 25th year of service and
the leadership team felt really bad about letting them go.
They were offered up to nine months of gardening leave,

a severance package of one month’s salary per year of
service, an ex-gratia payment and also personalised
Outplacement support to help them find new jobs.
In a further show of appreciation, the staff were also

given one free air ticket to anywhere in the world annually
for every year of service in the company!

2. Providing Same Day Support
As Notification Day is a stressful and traumatising event

for the affected employees, it is a good practice to have
additional resources on hand to support them as well.
These could come in the form of the following sources:
2.1 HR
On the day of the notification, HR plays a critical role in

providing more than just structural and administrative
support to the exiting staff.
Besides being on-site to answer any exit-related queries on

logistics, processes or separation package issues, they can
also provide compassionate listening ears to those who
need more closure.
If there are other HR Managers who are not involved in

the exit process, it would be a good idea to brief them
beforehand and have them available on standby to support
both the leavers, as well as the stayers.
2.2 Employee assistance managers
For Managers who worry that their impacted employees may

not wish to engage with HR, but might still need emotional
support, they could arrange for an on-site Employee
Assistance Manager, who is a trained counsellor, to provide
support for staff who need professional counselling.
From our experience, this service is rarely utilised by

departing employees as their first priority is to exit the
premises and to process what just happened to them.
However, this does not negate the fact that the Employee
Assistance Managers may be useful in some cases, especially
where staff are known to be emotionally volatile.
2.3 Outplacement coaches
One of the best support that a company can provide is to

request for Outplacement Coaches to be on-site during
Notification Day. These professionals are trained to handle
difficult situations, like calming emotional staff and
providing an unbiased viewpoint of the situation.
They can also answer any pressing job-search related

questions that might be on the employee’s mind, which can
be very disconcerting, especially for those who have been
in the company for many years and are unfamiliar with the
employment landscape.
Additionally, they can highlight the various support

services that will be provided, thus giving the exiting staff
some peace of mind and to let them know that help is
available during this difficult period.
2.4 Government
In Singapore, there are government agencies that provide

Notification Day support as well.
Workforce Singapore (WSG) is always ready to extend a

hand to organisations on their Notification Day and can
supply their own Career Coaches on-site. The Employment
and Employability Institute (E2i), a division of the National
Trade Union Congress (NTUC), is also able to provide a
similar service. From our experience, the blue-collar and
junior level employees will probably find the services from
these agencies very useful.

For companies that are unionised, union leaders may insist
on being there on Notification Day.
3. Providing Post-notification Logistics
Some organisations provide further insurance coverage

for a few more months after the employee has exited. This
helps the individual in case of an unfortunate accident or

health issue. Other post-notification matters may include
reference letters, performance review documents and
collection of personal effects.
Organisations that exit expatriate employees would have

to consider repatriation. They may arrange for logistics
companies to assist the impacted employee or even provide
a repatriation or relocation allowance. The expatriate has to
concern himself with withdrawing his children from school,
aborting his lease, selling furniture, etc. and requires more
support than local employees.
4. Providing Career Transition Support

At minimal cost, organisations can arrange for impacted
employees to receive Outplacement Support. This involves
partnering with a Career Consultant who can support them
through their next job search. Outplacement support may
include workshops, résumé reviews, interview practice and
networking opportunities.
CASE STUDY
“It had been 22 years since I last interviewed for a job

and was very distressed at having to navigate this route
again. I did not even have a résumé!
Luckily, I was appointed a very experienced and caring

Career Coach who assured me that age was not going to
be a factor and that I would land a good role soon.
She helped me with my CV, LinkedIn profile and even

gave job-search tips. Most importantly, it felt good to
have someone you can turn to as an advisor and friend
when you don’t know what to do.”
Chapter Ten
SUPPORTING THE STAYERS

AND MOVING FORWARD
Often, our clients focus so much on the exit event that they
forget the thing that matters most: Getting back to business.
The truth is that the employees who remain are often the hardest
hit. Besides the emotional trauma caused by the unpleasant
event, they also have to cope with the stress of taking over
additional tasks and responsibilities of exited colleagues, often
without extra compensation or consideration.
As such, they may become flight risks, which an already

embattled organisation cannot afford.
Even after an orderly Exit Exercise, emotions can still be raw for
weeks, especially between exiting colleagues who are allowed to
serve out their notice and those who weren’t affected.
Discomfort and awkwardness can lead to poor communications,

creating business problems for the customers.
71
From our experience with our clients, until the organisation can
move on, their customers will be the ones who face the fallout
of a retrenchment exercise, further shaking their confidence in
the company’s ability to perform as a reliable service provider.
CASE STUDY
“After the last name was read out, everyone who was not
impacted went back to their desks. But instead of feeling
relieved at not being retrenched, I was overcome with a
sense of dread.
Doubts started creeping into my mind. ‘Is this only the

beginning? Will there be another round next week?
Should I start sending out my CV?’
My colleagues around me felt uncertain too. In fact,

many started to feel some survivor’s guilt, as though they
were somehow responsible.
We were also uncomfortable facing those who were

serving out their notice periods. How do we speak to
them without sounding condescending or hurting their
feelings?”
In addition to Outplacement Services for leavers, post-Exit

Management advice for those staying behind is also important.
Here are some guidelines:
SUPPORTING THE STAYERS AND MOVING FORWARD 73
1. Assure Them That the Worst Is Over

for Now

The worst fear on every stayer’s mind is: “Who’s going to
get retrenched next? Is it me?”
One company dragged their Notification Exercise over two

weeks, which ultimately resulted in near-zero productivity
during that period because nobody wanted to get any work
done, just in case they were going to get the pink slip.
We suggest offering remaining employees some form of

closure.

This could be in the form of the Business Leader giving a
simple statement like “I know this has been an unpleasant
event, but it was necessary for the company. I assure you
that there are no more names on the list and we should all
move onwards together.”
Notice that the Leader is not guaranteeing that there will

be no further headcount reductions, but that this round of
cuts is finally over and things can be expected to stabilise
for the time being.
A simple statement of assurance from the leader that the

worst is over (for now) can be a powerful rallying call for
those staying behind.
2. Give Them a Voice
At one client’s office, work almost came to a standstill and

we were called in to find out why.
We discovered that the general consensus, post-

retrenchment, was that only the longer-serving (more
than 10 years of service) executives were exited. Many felt
betrayed since the company always advocated “taking care
of its people”. This underlying resentment manifested itself
as “passive-aggressiveness” to the Management and also a
reluctance to go the extra mile for their clients.

There was the proverbial elephant in the room that nobody
wanted to talk about.
We were called in to initiate our Next-Steps™ Programme

where we organised structured discussions for separate
groups of stayers, without the presence of HR or their
Leadership Team. We walked them through their feelings
and taught them how to manage change and fortify their
personal resilience. They came away with concrete plans
and a renewed attitude towards their work.
At the end of the session, a 31-year-old Executive shared

openly, “This is my third experience with company
retrenchment. The fact that our management has organised
this and allowed us to learn to cope signals to me that this
company is indeed serious about moving forward into a
new era.”
Give your employees space and time to handle the shock of

such exercises and a platform to learn how to process their
next steps.
3. Show Them What’s Acceptable and

What’s Not
After an Exit Exercise, employees often do not know how

to behave towards one another, especially to those who
are serving out their notice. Although companies cannot
dictate what can or cannot be communicated between co-
workers, guidelines like “do not share details of your exit
package” can be suggested.
Leaders should also lead by example and display behaviours

that are encouraged, like interacting respectfully with
exited staff and treating them professionally.
Generally, exited employees do not like being in the office

after the event and those remaining are also uncomfortable
with them around.
As there is a risk of leakage of sensitive data or even outright

sabotage, many companies put their exited employees on
gardening leave where they are allowed to be away from the
office on full salary, until their last working day.
4. Make Solid Action Plans and Move on

with the Business
One of the ways to allow the business to return to normal

is to have teams review and develop new action plans based
on the renewed direction and change in organisational

structure.
These plans should not be developed in isolation, but in

tandem with the bigger picture.
Some key focus areas could include:
• Clear handover process

• Client notification (i.e., who informs the client, what is
the approved messaging, etc.)
• Updates in external client processes
• Updates in inter-departmental processes
• Reviewing and establishing new objectives
• Reviewing new job descriptions, responsibilities and key
performance indicators for those in affected departments
Staff should be allowed to ask all questions and nothing

should be taboo. The leadership team is also expected to be
open and transparent with the workforce.
5. Review Future Skills Requirements of

the Organisation
A client of ours was so disturbed by having to conduct such

a workforce reduction, he promised himself that he would
never have to do that again.
Because the key reason for exiting 25 per cent of his

workforce was due to changing technology that made his
existing employees redundant, he invested heavily in skills
retraining for all his staff, utilising government-funded
programmes.
Together with HR, they developed clearer workforce-

planning tools and more importantly, proactively engaged
Career Agility Coaches to educate their employees on the
importance of being skills-agile and career-agile. To date,
their employee engagement scores are even higher than
they were before the retrenchment exercise.
Always bear the big picture in mind. At the end of the

day, a retrenchment exercise is not merely a short-term
cost-saving move, but a strategic tool for workforce
transformation to create better shareholder value.
Reducing headcount alone without the follow-up

implementation or planning to leverage the new structure
will only result in lost productivity and plenty of missed
opportunities.
Chapter Eleven
PERSONAL SHARING
BY EXPERIENCED HR LEADERS
Because this book as written specifically for HR Practitioners

who might be unfamiliar with Employee Exit Management,
we have decided to include this section where senior HR
Leaders share their thoughts.

These distinguished HR experts were handpicked by us
and have at least 20 years of HR experience, along with
direct expertise in managing 10 or more employee exit
exercises.
They were asked to share their thoughts about retrenchments

and advice for younger executives tasked to manage this
process. Here are their comments:
HR director #1:
“Don’t conduct the exercise alone. Surround yourself with more

experienced people or seek the advice of your HR mentors.
79
Engage a retrenchment consultant to help manage the process

as it will be worth the investment.
Be compassionate—be empathetic, not sympathetic. Follow

the golden rule: Do unto others as you would want them done
unto you. Just put yourself in their shoes and imagine how you
would like to be treated in such a similar situation.”
HR director #2:
“When planning a retrenchment exercise, coaching the

managers is crucial. Some managers do not see the value in
being compassionate, but it is HR’s role to ensure they do.
In Singapore, some companies are unable to differentiate

between terminating poor performers and retrenchment due
to redundancies, hence both were treated the same way, which
caused friction within the organisation.
My advice is to create a robust communication plan to managers,

impacted staff and those staying behind.
HR should also provide support for leavers. Ensure follow-up

by managers to see whether they are alright and give them as
much outplacement support as you can budget. Be consistent in
your treatment. Do not be seen providing preferential treatment
to certain groups by means of length of notice period, severance
packages or processes. Exiting staff will always compare and
feel shortchanged at such discrepancies.”
PERSONAL SHARING BY EXPERIENCED HR LEADERS 81
HR director #3:
“Retrenchments are always traumatic for impacted staff, so

do not make it any worse for the employees. Always provide
clear and honest reasons why the retrenchment is happening
as they deserve to know why. I also recommend knowing the
retrenchment package well as you might be asked questions
on the spot and have to give the correct answers immediately.
Wrong information will only worsen an already difficult
situation.”
HR director #4:
“Exits usually go well if they are thoroughly planned and line

managers are prepared beforehand. Perform individual due
diligence checks on every impacted employee to make sure
their personal circumstances (e.g., emotional stability, financial
situation, etc.) are known before notification so you can provide
the right assistance.
The worst thing to happen is to let the name list be leaked before
notification. Do be careful with the confidentiality of the data.
Ideally, the affected employee will leave the company

understanding the reasons behind the decisions and move on
to better roles.”
HR director #5:
“I think the larger companies in Singapore tend to do

retrenchment exercises better than the smaller ones.
For the first-time HR practitioner, I recommend role-playing

with a senior or mentor. Stay calm and keep your emotions
in check. If you are asked a question you are unsure of,
say you will check and come back with the right answer.
Retrenchments are very emotional events, so ensure your own
feelings are being managed correctly. Talk to someone or even
cry if you have to.”
HR director #6:
“Sometimes, organisations are tempted to misbehave by

shortchanging impacted staff by reducing or removing any
retrenchment benefits to save costs. HR needs to be firm and
provide resistance where necessary.

Always plan early for a flawless execution and ensure
sufficient support for exiting staff. Do not forget those
staying behind and keep them close. Offer them support
too.”
HR director #7:
“Try to move the process along as quickly as possible because

prolonging the event does not benefit anybody.
After the exercise, identify who your top talents are and assess
if they are ‘flight risks’. Assure them, keep them engaged and
manage them well so they don’t leave the company as well.
Document everything (packages, calculations, benefits, etc.) to

protect yourself and your organisation against litigation risks,
should any disagreements arise.”
HR director #8:
“Always have a good plan on hand. Train your line managers

well so they will not be insensitive to departing staff.
Pay particular attention to employees who are not local. They

may face more challenges in terms of visas, housing, children’s
education or even medical leave. Be as flexible with them as
possible in terms of benefits.
Don’t forget to look after those staying behind. It can be

emotionally heart-wrenching for them to witness this
happening to their colleagues.”
HR director #9:
“Be sensitive. I once witnessed a retrenchment exercise where

employees were immediately escorted out of the office with no
opportunity to collect their belongings at their desks. I thought
it was very disrespectful and it really lowered office morale for
quite a long while after the event.
Do not feel responsible for what has happened. Do not

apologise for it. It is a business decision and not HR’s fault. As
HR professionals, we are just there to do our duty and execute
the process as smoothly as possible.”
HR director #10:
“Give exiting staff as much lead time after the exit as possible.
Give them a fighting chance to land their next job. You will
want that too if you were in their shoes.
Leaders should be truthful to those staying behind. Do not

sugarcoat bad news and if there are more bad times ahead, the
organisation needs to know and adapt together.”
HR director #11:
“Do not allow the Line Manager to avoid his responsibility by

pushing the entire Notification Exercise to you. It is primarily
his responsibility as a leader to communicate the news whilst
HR is there for support. If the exercise is a small-scale one (less
than five staff), do it at the end of the day or during lunchtime
so there are fewer colleagues around.”
HR director #12:
“One of the best outcomes I have witnessed was that we were

able to find alternative jobs for our staff even before their exit
dates. It was a plant shutdown and HR had actively canvassed
neighbouring plants for job openings and held a ‘job fair’ on-
site.”
HR director #13:
“Be prepared for all contingencies. We once had an unhappy

staff who got angry during the Notification Exercise and turned
violent, attacking several security officers. The police had to be
called in and he was led away in handcuffs.
I have also witnessed positive situations where exiting staff were

respectfully exited with sufficient notice, certificates of good
service and even a farewell party to show appreciation for their
work contribution over the years.”
HR director #14:
“Arm yourself with the local HR practices and labour regulations

so you know your rights and responsibilities. Don’t worry
too much. If properly planned, many of these retrenchment
exercises go smoothly with no major incidents.
There was a memorable incident where a long-service employee

was given a rather generous package and he came back the
next day with chocolates to thank everybody.”

HR director #15:
“Do not be pushed around by the business leaders. If you see

unfair practices like retrenchments disguised as ‘performance-
related termination’, speak out. If you see companies cutting
back on retrenchment benefits just to save some extra costs that
they could well afford, speak out too.
When I was a younger HR Executive, I was instructed by my

HR director to hide the fact that all employees were entitled to
outplacement services from the employees themselves. ‘If they
don’t know, they won’t take it up and it won’t cost us.’ I felt it
was unfair and decided to anonymously blow the whistle to the
corporate HQ.”
HR director #16:
“Keep all communication channels open after the retrenchment

exercise. Allow the leavers to circle back to ask questions and
clarify any doubts they might have.
If your company is unionised, work together with the unions

before notification day so they will be prepared, but you do not
need to inform them too early. We once had an information
leak to the press, which led to negative publicity as it was over
the Christmas-New Year weekend.”
HR director #17:
“I have been practising HR for the last 20 years and have

conducted many exits. I feel that the exit practices today have
room for improvement. Because retrenchments are rampant,
companies have become more ‘ruthless’ in shedding staff
numbers as the first solution to any cost-cutting initiative.
Over the years, HR departments have gotten so used to
‘routine retrenchments’ that they have made the process even
more efficient and may sometimes come across as ‘mercenary’
because they have been desensitised to it.
I believe HR must always be respectful to employees being

retrenched. He may be ‘just another digit’ for you, but the loss
of a job means the world to him and this is going to be a rough
time for him.”
HR Director #18:

“Like many things, the first time is always the toughest. Involve
your HR supervisor in the process, even if he/she is not in
Singapore. Engage the business leaders at a very early stage and
do not let them ‘outsource’ the job to you. Remember: HR’s role
is to support them, not replace them.”
HR Director #19:

“No matter how many times you have conducted these exercises,
you will never get used to it. In fact, I hope you never get used
to it. It never gets easier and you just have to brace yourself
emotionally every time you do it.”
HR Director #20:

“I can never overemphasise the need to plan meticulously,
especially if it is a larger-scale event. Practise the messaging
with your team and role play until you are comfortable with
the script.”
AFTERWORD
When we first began working on this book, we wanted to

share our industry knowledge with HR Practitioners in the
market.
What started out as a simple intention to write Singapore’s first

text on retrenchment practices grew into an increasing call for
professionalising this practice area by the senior HR Leaders we
interviewed.

Many of them highlighted the lack of expertise in Exit
Management, especially with the younger HR Practitioners
who are increasingly being employed in leadership roles by
many technology start-ups and SMEs.
Thus, we approached this project as a means of conveying

sound advice from experienced HR Professionals to those who
want to learn more.
89
Given the uncertain economic environment that Singapore will

be facing over the next few years, retrenchments will continue
unabated. Therefore, we hope to see companies embarking on
more responsible Employee Exit practices in Singapore.

As the practice of compassionate retrenchment management
progresses, we will continue to learn new lessons and would
like to continue sharing ideas even after the first print run of
The Exit Management Handbook.

ABOUT
CAREER AGILITY
INTERNATIONAL
Founded in 2017, Career Agility International has been helping

clients with finding CareerClarity™ and meaning in their lives.
We are a team of career experts with decades of combined
experience in the career consulting and outplacement industry.
We also work with large corporate clients to manage their

retrenchment exercises—or as we prefer to call it, “employee
exits”—by providing CareerCare™ Outplacement Support and
advice on their planning, logistics and HR processes to ensure a
smooth and flawless employee Exit Exercise.
For exiting employees, we provide them with a highly

personalised CareerCare™ Outplacement Support that
ensures quick placement and more importantly, a robust Career
Strategy™ that will help them enjoy increased employability
and a more meaningful future.
91
Left to right: Rahman Yoonus, CTO | Jason Dasey, Media Advisor | Velina Collins,
Principal Career Mentor | Adrian Choo, CEO | Regina Teo, Operations Manager |
Sze-Yen Chee, Executive Director
Please visit our website at www.CareerAgility.org to be a

member of our community of practice to receive more insightful
information from our experienced HR panelists.
If your organisation has any further questions or challenges

ahead, we welcome any queries at info@CareerAgility.org.
We are experts in this field,

passionate about what we do,
proudly Asian in our approach and
empathetic in our engagement.
Sze-Yen Chee
Executive Director, Career Agility International
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Our Services
As a leader in the career consulting industry, Career Agility

International offers a full suite of services to our corporate
clients.
In addition to HR advisory, we also provide CareerCare™

Outplacement Support consisting of services, such as
personalised coaching, job search strategies and career
workshops, to name a few.

Our company’s philosophy is to care for the retrenched
individual on a personal level, with dedicated one-to-one
support from highly experienced and empathetic career
mentors.
93
CareerCare™ OUTPLACEMENT Support

Services
• One-to-one personalised coaching

• Résumé preparation and writing
• Interview coaching skills
• Career strategy development
• Career agility coaching
• Positioning strategies
• LinkedIn optimisation
• Job search strategies
• CareerClarity™ workshop
• Career workshops/masterclasses
• Connect to headhunter services
• Access to proprietary Career Agility Diagnostic Tool
• MBTI assessment
For more information, please contact us at:
Career Agility International

24 Raffles Place
#26-06B Clifford Centre
Singapore 048621
Tel: (+65) 6909 0931

Email: info@CareerAgility.org
Website: www.CareerAgility.org
RESOURCES
ANNEX A
TRIPARTITE GUIDELINES ON
MANDATORY RETRENCHMENT
NOTIFICATIONS9
Introduction
Notification of retrenchments will enable Workforce Singapore

(WSG), the tripartite partners – the Ministry of Manpower, the
National Trades Union Congress (NTUC) and the Singapore
National Employers Federation (SNEF) – and other relevant
agencies to help affected employees find alternative employment
and/or identify relevant training to enhance employability.
This set of guidelines provides guidance to employers on

the upcoming requirement on mandatory retrenchment
notifications under the Workforce Singapore Agency Act. The
requirement will be effective as of 1 January 2017.
9 “Tripartite Guidelines on Mandatory Retrenchment Notifications”. Ministry of

Manpower. 23 August 2019. 26 Aug 2019 <https://www.mom.gov.sg/-/media/
mom/documents/employment-practices/guidelines/tripartite-guidelines-on-
mandatory-retrenchment-notifications.pdf>.
Who should submit retrenchment

notifications?
Employers who employ at least 10 employees are required to

notify MOM if 5 or more employees are retrenched within any
6 month period beginning 1 January 2017.
What constitutes a retrenchment?
For the purpose of this set of guidelines, retrenchments are

defined as dismissal on the ground of redundancy or by reason
of any reorganisation of the employer’s profession, business,
trade or work. This applies to permanent employees, as well as
contract workers with full contract terms of at least 6 months.
When should I submit the notification?
The notification must be submitted within 5 working days

after the employee is notified of his/her retrenchment. (For
the first four employees to be retrenched, the notification must
be submitted within 5 working days after the 5th employee is
notified. Thereafter, the notification must be submitted within
5 working days after each employee is notified)
How do I submit a notification?
Employers should refer to the following website for details on

how to submit the notification: http://www.mom.gov.sg/notify-
retrenchment.
ANNEX A 99
What information do I need to submit in

the notification?
Please refer to http://www.mom.gov.sg/notify-retrenchment

for the form to submit the notification. You will need to submit
the following information:
• Company UEN
• Company contact person details
• Size of workforce before retrenchment (Singaporean/PR/
Foreigner)
• Details of workers to be retrenched/who have been
retrenched:
- NRIC/FIN
- Residential status
- Date of retrenchment
- Job title
What is the penalty for non-compliance?
Failure to notify within the required timeline is an offence and

you may be liable on conviction to penalties, including a fine
not exceeding $5,000.
Where to seek further assistance
For assistance on employment facilitation services, companies

can contact the following:
Workforce Singapore (WSG)

www.wsg.gov.sg
Tel: 6883 5885
Employment and Employability Institute (e2i)

www.e2i.com.sg
Tel: 6474 0606
Email: followup@e2i.com.sg
For further clarification on the mandatory retrenchment

notifications, companies may approach MOM:
Ministry of Manpower (MOM)

Tel: 6438 5122
Email: mom_lrwd@mom.gov.sg
ANNEX B
TRIPARTITE ADVISORY ON
MANAGING EXCESS
MANPOWER AND RESPONSIBLE
RETRENCHMENT 10
Introduction
1. The Singapore economy is highly exposed to structural

changes in global trends and volatility in external demand.
Businesses will need to constantly push for higher
productivity as we face slower manpower growth and
keener global competition. As businesses seek to adjust,
there may be some impact on workers whose jobs may be
affected in the process.
2. The tripartite partners – the Ministry of Manpower

(MOM), the National Trades Union Congress (NTUC)
and the Singapore National Employers Federation (SNEF)
- strongly encourage employers to take a long term view of
their manpower needs, including the need to maintain a
strong Singaporean core, when managing these challenges.
10 “Tripartite Guidelines on Managing Excess Manpower and Responsible
Retrenchment”. Ministry of Manpower. 23 August 2019. 26 Aug 2019 <https://www.
mom.gov.sg/~/media/mom/documents/employment-practices/guidelines/tripartite-
advisory-on-managing-excess-manpower-and-responsible-retrenchment.pdf>.
101
Managing Excess Manpower
3. Employers facing structural changes should consider

alternative ways of managing their local manpower where
possible. These could include upskilling employees and
redesigning jobs. Employers wishing to develop capabilities
in these areas can tap on government grants like WorkPro
and the Capability Development Grant. Employers are
encouraged to consult the unions, business associations
and employees about these changes. In some instances,
employers may find it more appropriate to implement
established cost–saving measures for their excess manpower
as outlined in Annex A.
Responsible Retrenchment
4. In the event that retrenchment is inevitable, the tripartite

partners have developed the following advisory to help
companies implement potential retrenchment exercises
in a responsible and sensitive manner, bearing in mind
the impact on the affected employees. Retrenchment is a
difficult time for all, especially the employees affected and
their families. It is important that employees are treated
with dignity and respect during a retrenchment exercise.
Considerations
5. When carrying out a retrenchment exercise, the selection

of employees for retrenchment should be conducted fairly,
based on objective criteria such as the ability of the employee
to contribute to the company’s future business needs.

ANNEX B 103
Employers should not discriminate against any particular

group on grounds of age, race, gender, religion, marital
status and family responsibility, or disability. For instance,
older, re-employed, as well as pregnant employees should
not be unfairly targeted.
6. Employers are reminded to abide by the Tripartite

Guidelines on Fair Employment Practices. MOM acts on
complaints of discriminatory employment practices. If the
complaints are substantiated, companies will have their
work pass privileges curtailed.
Notifying Government and Unions of

Retrenchment
7. If the company is unionised, the relevant union(s) should

be consulted as early as possible. Where it is provided in the
collective agreement, the norm is 1 month before notifying
the employee.

8. Companies are also reminded to abide by the Tripartite
Guidelines on Mandatory Retrenchment Notifications.

9. Notification of retrenchments will enable Workforce
Singapore (WSG), the tripartite partners, and other relevant
agencies to help affected local employees find alternative
employment and/or identify relevant training to enhance
employability.

10. In the event where labour issues arise from the retrenchment
exercise, MOM and tripartite partners can also advise the
employer on such issues.
Communication to Employees
11. Employers should communicate the intentions for

retrenchment to their employees early and before the
public notice of retrenchment is given. This may include:
a. Explaining the business situation faced by the company

resulting in the need for a retrenchment exercise;
b. Outlining how the retrenchment exercise will be
carried out;
c. Elaborating on the factors that will be considered; and
d. Specifying the assistance being offered to those affected.
12. When issuing the retrenchment notice, employers should

be sensitive to the emotional needs of affected employees.
Where necessary, counselling support should be considered
and offered.

Retrenchment Notice Period to Affected
Employees
13. Employees being retrenched need time to prepare for and

look for alternative arrangements. A longer notice period,
to the extent practicable, will be helpful.

14. As a minimum requirement, the Employment Act already
provides for the following notice period schedule for
termination of employment under normal circumstance:
ANNEX B 105
LENGTH OF SERVICE NOTICE PERIOD
Less than 26 weeks 1 day
26 weeks to less than 2 years 1 week
2 years to less than 5 years 2 weeks
5 years and above 4 weeks

15. However, responsible employers are encouraged to adopt a
longer retrenchment notice period when compared to the
normal termination of employment contract, or to pay in
lieu of such notice. This should be worked out with union(s)
in the collective agreement concerned; or with employees
in their contracts of service; or codified in their company
HR handbooks.

16. Employers should also pay all salaries due and retrenchment
benefits to the affected employees by the last day of work.
Retrenchment Benefits
Eligibility
17. Employees with 2 years’ service or more are eligible for

retrenchment benefits. Those with less than 2 years’ service
could be granted an ex-gratia payment.
Quantum
18. The quantum of retrenchment benefit depends on what

is provided for in the collective agreement or contract
of service. If there is no provision, the quantum is to be
negotiated between the employees (via their union in the
case of a unionised company) and the employer concerned.

19. The prevailing norm is to pay a retrenchment benefit varying
between 2 weeks to 1 month salary per year of service,
depending on the financial position of the company and
taking into consideration the industry norm. However, in
unionised companies where the quantum of retrenchment
benefit is stipulated in the collective agreement, the norm is
one month’s salary for each year of service1.
Adjustments
20. If the retrenchment exercise follows shortly after a wage cut,

the salary prior to the wage cut should be used to compute
the retrenchment benefit, so that cuts are not implemented
just to reduce retrenchment payments.
11
Employment Facilitation
21. As responsible employers, companies should help affected

employees look for alternative jobs in associate companies,
in other companies or through outplacement assistance
programmes. We urge employers to go beyond advisory
assistance, and make practicable efforts to place affected
11 Employment facilitation refers to activities that improve jobseekers’ employability

and help jobseekers secure employment.
ANNEX B 107
employees in their next jobs, possibly with the help of

intermediaries such as employment/placement agencies.
Supporting documentation (such as referral letters,
service records and past training certificates) should also
be provided where relevant to facilitate the job search
of affected employees.

22. Employers can work with unions, SNEF and agencies such
as WSG, NTUC’s U PME Centre and the Employment
and Employability Institute (e2i) to provide employment
facilitation services to assist the affected employees.
Conclusion
The revised ‘Tripartite Advisory on Managing Excess

Manpower and Responsible Retrenchment’ aims to assist
employers in managing their excess manpower and conducting
retrenchment exercises, where it is inevitable, responsibly. Early
notification of retrenchment will enable WSG and the tripartite
partners to do more for retrenched workers, particularly
in employment facilitation. This can improve outcomes for
employers, employees, and the wider community.
For assistance on employment facilitation services, companies

can contact the following:
Workforce Singapore (WSG)

www.wsg.gov.sg
Tel: 6883 5885
Employment and Employability Institute (e2i)

www.e2i.com.sg
Tel: 6474 0606
Email: followup@e2i.com.sg
For further clarification on the advisory or assistance, companies

may approach MOM, NTUC, SNEF, or TAFEP.
Ministry of Manpower (MOM)

Tel: 6438 5122
Email: mom_lrwd@mom.gov.sg
Tripartite Alliance for Fair and Progressive Employment

Practicces (TAFEP)
Email: contactus@tafep.sg

Possible Cost-Saving Measures to Manage
Excess Manpower
1. Redeploy Workers to Alternative Areas of Work

Within Your Organisation
Employees can be re-deployed or rotated when the job

scope is enlarged, enriched or restructured. When there is
no other available jobs for them within the organisation,
companies can consider outplacing the affected employees
to suitable jobs in other companies, taking into consideration
their physical and mental conditions, skills and experience.
Employees who are re-deployed should also be provided
with the relevant training.
ANNEX B 109
2. Shorter Work Week, Temporary Layoff or Other

Work Arrangements
Workers and trade unions (if workers are unionised) should

be consulted on the implementation of shorter work week,
temporary layoff, flexible work schedule or other flexible
work arrangements, in any appropriate order, as well as the
level of payment to be given to the affected workers, taking
into consideration the performance and financial position
of the company.
Shorter work week
• Request your employees to take up to 50% of their

earned annual leave.

• Implement the reduction in work week such that it does
not exceed 3 days in a week and not last for more than
3 months at any one instance subject to review.

• Pay the affected employees not less than half of their
salary on the day(s) when the employees are not
working, during the period when the shorter work
week is implemented.

Temporary layoff
• Request your employees to take up to 50% of their

earned annual leave.

• Implement the layoff period such that it does not exceed
1 month at any one instance subject to review.
Pay the affected employees not less than half of their

salary during the layoff period.
3. Part-Time Work, Sharing of Jobs and Flexible

Work Schedule
You may also consider implementing other work

arrangements such as part-time work, sharing of jobs and
flexible work schedule, in consultation with the union and
workers concerned. Companies may implement them in
any particular order depending on the operational needs
and the severity of the downturn.
The Employment Act (EA) allows companies to implement

the Flexible Work Schedule (FWS) to optimise the use of
manpower resources. Companies could make applications
to the Commissioner for Labour to be exempted from the
EA provisions on overtime payment, pay for work on rest
days and public holidays, provided that certain conditions
including the safety and health of workers, are met.
Applications should be made with the support of workers
and unions (for unionised companies). Details on the
qualifying conditions can be found on the website http://
www.mom.gov.sg/eservices/services/apply-for-flexible-
work-schedule.
Some companies might find that the above-mentioned

measures may be more suitable for rank-and-file workers
and less applicable to executives, particularly senior
management. In such a situation, other measures may
need to be considered with regard to executives, based on
the company’s circumstances and operational needs, to
ANNEX B 111
support its manpower and business strategies to cope with

the downturn.
Flexible wage system
If your company has a flexible wage system in place

and a reduction in manpower costs is required to avoid
retrenchment, you may consider adjusting the various wage
components in consultation with the union or workers
concerned. The various wage components include:
Variable bonus payment
This is the first component to be cut during a business

downturn as payment is directly linked to the company’s
performance. The continuation of such a payment will
depend on the profitability of the company. Hence, when
a company is not performing well, bonus payment will be
reduced or not given.
Annual wage increment
the need arises, the company may also consider reducing

the annual increment or introduce a wage freeze if the
situation warrants it, the extent of which should depend on
the company’s financial position.
Monthly variable component
The MVC, which forms a part of the basic wage, allows the
company to adjust wages quickly in response to changes
in the business environment without having to wait until
the end of the year to adjust variable bonus payments and

other annual variable components.

If your company has already put in place an MVC in the
wage structure, you can consider adjusting the MVC
downwards. The extent of the adjustment would depend on
the severity of the downturn, the company’s situation and
any key performance indicators or guidelines for triggering
an MVC cut as agreed with the union or workers.
For a company which has not implemented the MVC but

needs to adjust wages downwards, the company could
consider treating any cut in basic salary of up to 10% (for
management staff, it could be more than 10%) immediately
as MVC cut. The company should set clear guidelines to
restore the MVC cut through future wage increases or
adjustments when their businesses recover. In the case of
managers/executives, depending on the circumstances and
requirements of the company, the MVC set aside could be
more than 10% of basic wages, in line with the principle of
leadership by example. The company should consult their
workers and explain the reasons for the MVC cut. If the
company is unionised, it should seek the agreement of the
union.

Annual Wage Supplement (AWS)
If business conditions continue to worsen, another

component to be considered for reduction is the AWS,
which is usually one month’s salary to be paid at the end
of the year.
ANNEX B 113
The adjustment of the various wage components need not

be applied sequentially as listed above, and companies
in consultation with their workers or the union, have
the flexibility to implement them in any particular order
depending on the financial situation of the company and
the timing in which it is adjusted.
4. Other Cost-saving Measures
The tripartite partners recognise that some companies

may have to implement more severe cost cutting measures,
in addition to measures such as shorter work week and
temporary layoff. These companies may have to consider
implementing no pay leave, in order to survive and to save
jobs as the downturn prolongs.

In implementing no pay leave,
• Companies should have considered/implemented
other measures, and after consulting workers and
unions (if the company is unionised);

• Companies should recognise its impact on rank-and-
file workers in determining the extent and duration of
the measure;

• Senior management to lead by example, by accepting
earlier and/or deeper cuts in cost cutting measures;

• If business conditions warrant it, companies could
apply no pay leave in conjunction with other cost
cutting measures.
During the no pay leave period, management should also

arrange to send the affected workers to training. This will
help upgrade workers’ skills and employability for the
benefit of both the workers and the company in the long
run.

ANNEX C
ELIGIBILITY
AND REQUIREMENTS
FOR PERSONALISED
EMPLOYMENT PASS
12
Eligibility And Requirements For

Personalised Employment Pass
Eligible high-earning foreign professionals can apply for a

Personalised Employment Pass. Pass holders have greater job
flexibility than with other work passes. However, they need to
meet certain requirements to hold the pass.
Who is eligible
You can apply for a Personalised Employment Pass (PEP) if you

are:
• An overseas foreign professional and your last drawn fixed
monthly salary overseas was at least $18,000. Your last drawn
salary should have been within 6 months before you apply.

12 “Eligibility and requirements for Personalised Employment Pass”. Ministry of
Manpower. 27 February 2018. 26 Aug 2019 <https://www.mom.gov.sg/passes-and-
permits/personalised-employment-pass/eligibility-and-requirements>.
115
An Employment Pass holder earning a fixed monthly salary

of at least $12,000.

Who is not eligible
You are not eligible for the PEP if you are:

• An Employment Pass holder under the sponsorship
scheme.
• A freelancer or foreigner who intends to work on a
freelance-basis.
• A sole proprietor, partner or where a director is also a
shareholder in an ACRA-registered company.
• A journalist, editor, sub-editor or producer.
Note: You are not allowed to start a business or conduct any

form of entrepreneurial activity while on a PEP. If you intend to
do so, you should apply for an EntrePass.
Requirements of the pass
To keep holding a PEP, you must:

• Not be unemployed in Singapore for more than 6 months at
any time. Otherwise, you will need to cancel the pass.
• Earn a fixed salary of at least $144,000 per calendar year,
regardless of the number of months you are in employment.
• Notify us of the following:
- When you start or leave a job.
- If you change your contact details, such as local contact
person or address.
- Your annual fixed salary. You need to declare it to us by
31 January of every year.
ANNEX C 117
Benefits of the PEP
The PEP gives you greater job flexibility than other work passes:
• You can generally hold a job in any sector. However, the
PEP does not exempt you from complying with registration
requirements to practise in Singapore for professions such
as medicine, dentistry, pharmacy, architecture, law, etc.
• You do not need to re-apply for a new pass if you change
jobs; you only need to notify us.
• You can stay in Singapore for a continuous period of up to 6
months without a job to search for new employment.
Passes for family members
If you hold a PEP, you can bring in your family members on

these passes:
Dependant’s Pass for your:

• spouse (legally married).
• children under 21 years of age.

Long Term Visit Pass for your:
• common-law spouse.
• unmarried handicapped children above 21 years old.
• unmarried stepchildren under 21 years old.
• parents.
You need to submit a separate application for each family

member even if they currently hold a Dependant’s Pass or Long
Term Visit Pass. You can submit their applications along with
the PEP application.

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ADRIAN CHOO & SZE-YEN CHEE

Candid Creation Publishing

Copyright © 2019 Adrian Choo and Sze-Yen Chee

All rights reserved. No part of this publication may be reproduced, stored in a

THE EXIT MANAGEMENT HANDBOOK

Authors : Adrian Choo and Sze-Yen Chee

National Library Board, Singapore Cataloguing in Publication Data

Names: Choo, Adrian. | Chee, Sze-Yen.

It is not enough to be compassionate...

The Dalai Lama

1 Recent Trends in Retrenchment................................ 1

Annex B: Tripartite Advisory on Managing Excess

Annex C: Eligibility and Requirements for

A book on a topic as complex as this is never a solitary effort.

First and foremost, we would like to thank Dr Edwin Choo for

We would also like to recognise the contributions of our Human

1. Lesz Sikorski, Human Resource Vice President

6. Amanda Ang, Senior Manager

Many companies today are undergoing gut-wrenching changes.

Companies need leaders who are truly accountable and able

The challenge is that many business and HR Leaders do not

However, when retrenchment, reskilling and reorganisation

The Exit Management Handbook provides an essential and

The authors have drawn on close to four decades of personal

Vince Molinaro, PhD

Why Was This Book Written

Retrenchment, Reduction in Force (RIF), Layoff, Redundancy

Despite the global rise in retrenchment numbers, few organisations

Currently, Employee Exit Management (Retrenchment) is

We endeavour to change that.

As a company at the forefront of

Word of advice from a HR Leader

As a HR Leader, always be sensitive.

Our Approach to Writing This Book

As veteran Career Practitioners, we noticed a stark difference in

During the Great Financial Crisis of 2008, a company

The HR set up booths at the ground floor lobby and

Needless to say, employees were extremely upset at the

With our extensive experience in helping clients plan and

While writing this book, we approached numerous HR

On top of that, we also sought the views of the Singapore

encouraging corporate behaviour during these difficult times.

In summary, we have adopted a tri-faceted approach to develop

Designed to be compassionate, dignified and fair to the

Singapore’s economy has shifted tremendously over the years.

However, not many workers have managed to cross that

1. Structural Retrenchment Due to

Prior to 2000, the economy moved in rather predictable

1964, 1975, 1985, 1991 and 1998. These downturns were

Thanks to the speed of technology, product cycles are

As a result, the once familiar eight-year retrenchment cycle

Interestingly, even as these companies are retrenching their

We are observing a shift from “cyclical retrenchment” to

2. Changing Demographics of Workers

2.1 Younger workers

In our work as Career Coaches, we have noticed a rather

An observable trend in the market is that entire divisions

In other words, retrenchment does not “age-discriminate”.

Lucas is a 28-year-old Engineer who works in a

He was retrenched last year.

Despite his young age, he had already been retrenched

“I have come to realise that the retrenchment isn’t about

2.2 More PMETs being affected

Starting from 2011, labour market data from the Ministry