The shock of losing your job can be overwhelming, affecting not only the stability of your income but also your confidence and sense of identity. Retrenchment brings with it both emotional upheaval and practical concerns. But with time, planning, and the proper support, it’s possible to bounce back stronger.
Understanding what retrenchment means — beyond the legal or financial definitions — is key to emerging stronger from it. Managing your retrenchment process smoothly can help you evaluate what matters most in your career and chart a more fulfilling course ahead.
Why retrenchment happens
Retrenchment occurs when companies restructure or downsize, often due to shifting strategies, mergers, economic downturns, or technological changes. Whether the retrenchment is unexpected or anticipated, it is an emotionally and professionally significant career event.
The timing of retrenchment can hit especially hard, particularly when individuals have personal situations to consider, such as retirement or financial responsibilities. Amidst a tight job market or industry-specific slowdowns, retrenchment is even more challenging for talent to navigate.
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Understanding your retrenchment package
If you’ve been laid off, it’s essential to understand what you’re entitled to under your employment contract. This can include:
- Severance or lump-sum payments (based on tenure or salary)
- Payment in lieu of notice
- Ex gratia payments (goodwill gestures)
- Outplacement support (e.g., career coaching, resume writing)
Some employers may also provide additional benefits such as extended health insurance, visa support, or additional support to assist with job searches. The final amount of your retrenchment package may depend on several factors:
- Length of service
- Terms stated in your contract
- Financial health of the company
- Industry norms or union agreements
Being familiar with these components can help you assess your compensation and prepare for what’s next.
Notice period and non-compete clauses
Your retrenchment letter and employment contract outline key details, such as your final working day and whether you’ll need to serve a notice period. In some cases, employers may also offer payment in lieu of notice.
It’s also important to review any non-compete clauses, primarily if you work in specialised or competitive industries. These clauses may restrict you from joining a rival company for a specified duration, so understanding the terms upfront will help you plan your next move.
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Rebuilding your career after retrenchment
Retrenchment can feel like a setback, but it’s also a powerful opportunity to reflect, reset, and rebuild. Here’s how to get started:
1. Assess your skills and strengths
Start by reflecting on what you’re good at and what you’ve enjoyed doing. Make a list of:
- Technical skills (e.g., data analysis, project management)
- Transferable skills (e.g., communication, problem-solving)
- Career highlights and accomplishments
Consider asking past managers or teammates for testimonials or recommendation letters — they can boost your credibility and job prospects.
2. Tap on professional support
You don’t have to go through this alone. There are many avenues for support:
- Career centres and government agencies, like WSG, offer job search workshops, career guidance, and networking sessions.
- Professional associations can connect you with industry insiders.
- Recruitment firms can help you find new job opportunities or identify skill gaps to address.
If finances are your primary concern, support is available. If your job loss was involuntary and you earned $5,000 or less a month on average in the last 12 months, you may be eligible for the SkillsFuture Jobseeker Support scheme. It offers temporary financial payouts of up to $6,000 over six months to help tide you through this transition.
Regaining confidence after job loss
It’s common to feel a dip in self-esteem after retrenchment. But this doesn’t reflect your worth or capabilities — it’s often a business decision, not a personal one. Here’s how you can build your confidence again:
- Update your resume to highlight your accomplishments and align with today’s hiring needs
- Upgrade your skills by taking up relevant courses — learning something new can renew your sense of purpose and capability
- Reframe your story in a positive light when speaking to potential employers. Focus on what you’ve learnt and what you’re now looking forward to
- Maintain a daily routine that includes job hunting, breaks, exercise, and hobbies
- Stay connected with friends, family, and past colleagues
- Give yourself space to process the emotions that come with change
Step forward with purpose and resilience
Retrenchment can feel like an abrupt stop, but it may also be the pause you need to redirect your path. With the right tools, support, and mindset, you can rebuild not just your career but also your sense of self. Stay curious. Stay open. And know that your next opportunity could be the one that finally aligns with your strengths and aspirations.
This article is contributed by Randstad Singapore.
