No penalty hike needed for now as compliance with Mandatory Retrenchment Notification requirement has improved, says MOM

Late submissions are often due to administrative oversight rather than deliberate non-compliance.

Companies in Singapore are showing stronger compliance with retrenchment reporting requirements, even as questions are raised about whether penalties for breaches should be increased.

In a written answer to a Parliamentary question, the Ministry of Manpower (MOM) responded to Patrick Tay Teck Guan on whether it would consider raising and actively enforcing penalties for companies that contravene the Mandatory Retrenchment Notification (MRN) requirement under the Employment Act 1968.

MOM highlighted that companies with 10 or more employees are required to submit a MRN to the MOM within five working days of informing any employee of their retrenchment.

For non-compliance, the current penalty is an administrative penalty of S$1,000 for the first contravention and S$2,000 for subsequent contraventions.

Compliance has improved, with a majority meeting deadlines

MOM noted that most employers are complying with the MRN requirement. In 2025, 81% of MRNs were submitted within the five-working-day deadline, an improvement from 67% in 2024.

Late submissions, MOM said, are often due to administrative oversight rather than deliberate non-compliance.

Companies that submit their MRNs late are typically issued caution letters. To this point, the Ministry added that most employers have been remorseful and compliant after receiving such notices.

For recalcitrant employers, administrative penalties will be imposed.

No plans to raise penalties for now

Given the high level of compliance showcased, MOM said it does not see a need to raise penalties at this time; and will continue to monitor employers’ compliance with MRN requirements and review its enforcement framework from time to time.

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