A restructuring by Swedish fashion giant H&M has triggered a debate in Singapore over whether companies are presenting layoffs as new job opportunities.
The discussion follows H&M’s decision to move its Southeast Asia headquarters from Singapore to Malaysia. Employees were asked to apply for positions across the region as part of the restructuring, CNA reports.
Singapore’s National Trades Union Congress (NTUC) has expressed concern about workers being asked to reapply for jobs that are presented as “new opportunities” when their existing roles in Singapore are being eliminated.
“If the outcome of these practices is that a worker’s role in Singapore is made redundant, such arrangements are recognised and treated as retrenchment,” NTUC said.
Singapore’s Ministry of Manpower (MOM) took a similar position, stating that a job loss is considered a retrenchment if a role in Singapore becomes redundant or is moved overseas, regardless of whether the employee applies for a position abroad.
According to local media, H&M has submitted a mandatory retrenchment notification to the authorities. The company has said it remains committed to supporting employees and complying with local labour laws.
The case has prompted HR experts to warn that some companies may use restructuring exercises to avoid the negative optics associated with layoffs, even when employees ultimately lose their jobs.
