MOM and TAFEP have released key findings on the cost-saving measures adopted by employers severely impacted by the COVID-19 situation. It is reasonable for employers to ask employees to tap on existing leave entitlements or even take some no-pay leave when business activity has been severely reduced. If an employer’s cost-saving measures appeared to be excessive in the notification submitted to MOM, TAFEP would intervene to further assess if the measures were fair and reasonable.
- Key findings from employers’ notifications on cost-saving measures:
- Majority of employers from sectors severely impacted by COVID-19: accommodation and food services (24%), construction (16%), and wholesale and retail trade (15%).
- The top three cost-saving measures implemented were
- No-pay leave
- Adjustments to monthly salary components (most employees experienced salary reductions of up to 25%)
- Shorter work week
MOM and TAFEP will continue its engagement efforts to guide and support both employees and employers. More information is available here.