The current global economic slowdown has meant that companies have started to look at redundancies as a cost-saving measure. This month, we take a look at the requirements relating to redundancy notifications in Singapore, Malaysia, Indonesia, Hong Kong, China, Japan and Thailand.
| Country | Is there a requirement to notify a government authority or union of the redundancy? |
| Singapore |
No, there is no requirement to notify any government authorities, but this is recommended. There is no requirement to notify a trade union unless stipulated in therelevant collective agreement. |
| Malaysia |
Yes. A six-part notification form must be submitted to the Director-General of Labour, with Parts I to IV submitted 30 days before the redundancy, Part V submitted within 14 days of the redundancy, and Part VI submitted within 30 days of the redundancy. There may also be a requirement to notify the Inland Revenue Board, the Employee Provident Fund and/or the Social Security Organisation. |
| Indonesia |
Yes. Prior approval from the Industrial Relations Court must be obtained before employment can be terminated on the ground of redundancy. |
| Hong Kong |
Yes. The Inland Revenue Department must be notified of any terminations of employment. |
| China |
Yes, if 20 or more employees, or fewer than 20 employees but comprising 10% or more of the workforce, are made redundant. 30 days' advance notice of the redundancy must be given to the employees or relevant trade union for the employees or union to express an opinion, after which notice of the employer's redundancy plan must be given to the relevant labour bureau. |
| Japan |
Yes, if the redundancy involves 30 or more employees. A redundancy plan must be submitted to the Public Employment Security Office |
| Thailand |
Yes, if the redundancy arises due to a change in machinery or technology. 60 days' advance notice of the redundancy must be given to the Labour Inspection Official |
For more information, please contact Fatim Jumabhoy at fatim.jumabhoy@hsf.com.
Key contacts
Steve Bell
Managing Partner - Employment, Industrial Relations and Safety (Australia, Asia), Melbourne
Emma Rohsler
Regional Head of Practice (EMEA) - Employment Pensions and Incentives, Paris
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