[EvertonDiehard]

totally disagree. in singapore, there is no law that employers must pay retrenchment benefits. there is no cost involved by forced lay-off.

Do not be too quick to reply when you have not considered carefully that the impact of staff reductions include knowledge gaps left by experienced departing personnel. Staff morale is always generally lower in the few days following the first wave of retrenchments even though operations may continue relatively smoothly. When companies scrutinise their balance sheet, they may overlook the organisational costs of retrenching a substantial number of staff in one fell swoop.  Businesses may soon discover that they are unable to adequately replace key long term employees who understand the organisation, its clients and critical processes. The result may be a decrease in revenue as well as productivity.