Clarification on Defining Section 126B(aa) of Employment Act 1968 towards Errant Employers
Ministry of ManpowerSpeakers
Summary
This clarification concerns the administrative penalties for employers failing to submit Mandatory Retrenchment Notifications (MRN) under the Employment Act 1968. Ms Gho Sze Kee questioned if current civil contraventions lack sufficient deterrent effect compared to criminal liability for failing to furnish information. Minister for Manpower Dr Tan See Leng explained that while initial fines are administrative, non-compliance with official directions to remedy breaches remains a criminal offence. He noted that the Ministry considers whether breaches are technical or strict liability when determining the appropriate legal classification. Minister for Manpower Dr Tan See Leng concluded that most employers are compliant, with 70% filing on time from January 2021 to June 2025.
Transcript
44 Ms Gho Sze Kee asked the Minister for Manpower whether the Ministry will consider clarifying and defining the administrative penalties under section 126B(aa) of the Employment Act 1968 for breaches of section 96A, given that failures by employers to furnish retrenchment information are declared civil contraventions under section 126A(aa), which attracts no criminal liability and may lack sufficient deterrent effect.
Dr Tan See Leng: Employers are required to submit to the Ministry of Manpower a Mandatory Retrenchment Notification (MRN) within five working days after giving the retrenchment notice to their employees. There are penalties for failing to submit MRN, delay in submitting MRN and providing incomplete or inaccurate information under the Employment (Administrative Penalties) Regulations 2016; specifically, $1,000 for the first contravention and $2,000 for subsequent contravention.
Generally, when deciding whether to position a breach of the law as a civil contravention or an offence, several factors are taken into consideration, including whether the breach is one of strict liability or a technical breach of a rule.
An employer who continues to not submit MRNs may be subject to a criminal offence if he does not comply with a direction issued by an authorised officer under section 126D of the Employment Act. Such directions can be issued to the employer (in lieu of or in addition to the contravention notice) to bring the contravention to an end and to require the employer to take such action to remedy, mitigate or eliminate any effects of the contravention and to prevent its recurrence. It is an offence if the employer fails to comply with that direction, with a fine of up to $5,000 or imprisonment of up to six months or both.
Nonetheless, the majority of employers are compliant with the MRN requirements, with 70% having submitted on time between January 2021 to June 2025.