Here is a quick overview for employers considering short term measures to reduce working hours and wages, in accordance with the Tripartite Advisory on responsible retrenchment . This applies to CPF paying employees, as well as foreigners on Employment Passes (EP), and Letters of Consent (LOC).
*** The below steps are DIY. If you are a Futurebooks payroll client, please drop us a note, we will assist with the below steps at no cost ***
Steps:
1. Seek written consent from respective employees.
This is for all employees, local and foreign. It takes about 15 minutes to complete and requires a CorpPass.
This is a notification and does not require approval.
3. Prepare excel sheet in designated format with list of foreign employees whose wages will be temporarily cut.
4. Submit Application to reduce salaries of foreign employees as part of temporary cost-saving measures
This takes about 5 minutes, and requires CorpPass. MOM will respond back in three working days with approval.
The salaries of EP and LOC holders can be reduced only after receiving approval in Step 4.
