Eligibility and Quantum of Retrenchment Benefits

This case was on payment of retrenchment benefits by Sealing Technologies Pte Ltd to 98 of its ex-employees who had 3 or more years of service. The latter were represented by the United Workers of Electronics and Electrical Industries. The dispute was referred to the IAC for arbitration by the Minister for Manpower under Section 31(e) of the Industrial Relations Act. The issue for determination was whether the ex-employees of the Company were entitled to retrenchment benefits despite there being no CA between the Company and the Union, and if so, the quantum of the benefits. The Court ruled that the ex-employees should be paid retrenchment benefits at the rate of 1 month per year of service, pro-rated for any incomplete year of service.