The Employment, Parental Leave and Other Measures Act 2013 largely came into force on 1 April 2014, with the exception of two provisions, one of which concerned the non-eligibility period for retrenchment benefits under section 45 of the Employment Act.

With effect from 1 April 2015, section 45 of the Employment Act has been amended to reduce from three years to two years, the non-eligibility period for retrenchment benefits. The change is made in line with shorter employment tenures. Accordingly, no employee who has been in continuous service with an employer for less than two years (previously three years) will be entitled to any retrenchment benefit on his dismissal on the ground of redundancy or by reason of any re-organisation of the employer’s profession, business, trade or work.

By way of background, the Employment, Parental Leave and Other Measures Act 2013 amended theEmployment Act, the Child Development Co-Savings Act and the Industrial Relations Act to extend better protection to more workers and improve employment standards, while allowing flexibility for employers where there are practical business concerns.

Reference materials

For an overview of the changes to the Employment Act arising from the Employment, Parental Leave and Other Measures Act 2013, please refer to the Amendments to the Employment Act webpage on the MOM website