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Retrenchment benefits still payable if employer is able to secure employment (outplacement) for the staff by another company?

DS HRP
Member
Thu, 05 Jul 2018 05:37:04 PM  (Last updated: Mon, 09 Jul 2018 05:50:59 PM)

Company A is having a restructure due to changes in business plans and operating model, a team of employees will be deemed as redundant when the restructure completes, and these employees on permanent employment would be retrenched if they were not successfully placed into other roles within the organisation.

If Company A is able to work with Company B (or few other companies) to secure employment for this team of employees, is company A still required to provide severance payment (retrenchment benefits) for this group of employees on grounds that they accept this arrangement and will be given the required termination notice per employment contract?

Please advise.

Thank you!

KL Siew
Administrator
Fri, 06 Jul 2018 06:59:32 PM

To me, when an employer's service is terminated, he is entitled to termination benefits. His ability to get a job elsewhere is a different matter.

DS HRP
Member
Mon, 09 Jul 2018 01:05:09 PM
Originally posted by KL Siew on Fri, 06 Jul 2018 06:59:32 PM

To me, when an employer's service is terminated, he is entitled to termination benefits. His ability to get a job elsewhere is a different matter.

Hi KL Siew

What I meant was that the current employer wish to help secure employment for the employees whose positions will be made redudant. IF employee accepts the arrangement, he/she will be guaranteed an employment by another company, arranged by current company. 

I wish to know if current employer can ensure that this employee gets hired by another company, does current employer still need to pay retrenchment/severance benefits?

It is not so much on the employee's own ability to get hired.

Thanks, hope to hear your view.

KL Siew
Administrator
Mon, 09 Jul 2018 05:50:59 PM

In that case, you will have to talk to the employee concerned whether he is prepared to accept or not.