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Authorities looking into DFS Group's retrenchment exercise after dozens laid off

SINGAPORE — The authorities are looking into the manner in which travel retailer DFS Group's retrenchment exercise is carried out, a government agency that helps workers who are laid off said on Saturday (Sept 28).

It was reported that about 60 workers in DFS Group’s Singapore-based operations were asked to leave with immediate effect.

It was reported that about 60 workers in DFS Group’s Singapore-based operations were asked to leave with immediate effect.

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SINGAPORE — The authorities are looking into the manner in which travel retailer DFS Group's retrenchment exercise is carried out, a government agency that helps workers who are laid off said on Saturday (Sept 28).

It was reported on Thursday that about 60 workers in DFS Group’s Singapore-based operations were asked to leave with immediate effect.

The Taskforce for Responsible Retrenchment and Employment Facilitation said in a statement on Saturday that it is in contact with the retailer, and that the Ministry of Manpower has received DFS' notification of retrenchment.

The Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) is also looking into the matter, the taskforce said.

It said firms should adhere to the guidelines from TAFEP to "help them implement their retrenchment exercise responsibly and sensitively".

"We urge companies to pay the prevailing norm for retrenchment benefits, unless they are financially unable to do so," the taskforce added in its statement.

Workforce Singapore will offer employment assistance services to the affected workers, the statement added.

DFS Group had announced in August that it will not retain its duty-free liquor and tobacco concession at Changi Airport when its lease expires in June next year.

At that time, a DFS spokesperson suggested some staff affected by its withdrawal from the Changi concession operations could be redeployed to T Galleria, for example.

In response to CNA's queries, a DFS spokesperson said that it faced "a more challenging global travel retail environment", and that it has made the decision to "rebalance its workforce in Singapore".

"Our priority now is to support our employees during this period of change," it added.

In a Facebook post on Saturday, Manpower Minister Josephine Teo said companies should handle retrenchment “responsibly and sensitively”.

She said: "I think DFS could have better handled their recent retrenchment exercise, particularly in the way they communicated with their employees and how they offered the severance packages."

The company is now adjusting its approach and "taking appropriate steps" to address affected employees' concerns after TAFEP stepped in, she added.

Companies that find themselves with excess manpower should first consider re-deploying the affected staff to other business units or functions, the minister said.

"After best efforts to re-deploy, if they find they still have to let some people go, employers owe it to their staff to handle things properly,” Mrs Teo said.

“Among other things, (companies) should provide adequate notice and support such as placement assistance.”

While retrenchment levels in Singapore have not risen beyond that seen in the last few years, she urged employers to act responsibly if they need to retrench.

“Retrenchment is never easy, but handling it sensitively and responsibly can go a long way in helping employees through the transition," Mrs Teo said. CNA

For more stories like this, visit cna.asia

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