Reddit post alerts to potentially unfair retrenchment practices at major insurance firm

SINGAPORE: A Reddit post by user “jst-my-2cnt” on Wednesday (14 Aug) has raised serious concerns about alleged unfair practices at a prominent insurance company.

The user shared the story of friends employed at the company, who were allegedly coerced into resigning from their positions without proper compensation.

The Redditor began by expressing hesitation about sharing the information but felt it was important to shed light on what they described as a harsh reality of the current job market.

“I’ve been thinking for a while whether to post this. I hesitated a lot initially, but I think it’s fair to let people know the realities of the world we call home,” the user wrote.

In the post entitled, “My friends working for an insurer with some media attention lately have been asked to resign, as there are no more jobs for them,” the Redditor described how one friend was summoned to a meeting with a superior, where he was criticized for his “subpar” work performance.

The superior reportedly informed the employee that his position had been made redundant and that he would need to resign, with no offer of compensation.

The superior allegedly threatened the employee with a Performance Improvement Plan (PIP) if he refused to resign and warned that his reputation would be tarnished if he didn’t leave quietly.

Following the meeting, Human Resources also inquired about the employee’s resignation plans.

The user noted that similar incidents of threats and pressure were reported by other employees within the company.

According to the post, the company recently announced a cost-cutting project and reorganization, which seemed to target certain employees for resignation without providing proper retrenchment benefits.

“Any suggestion on what they can do? Some have decided to quietly resign as they see no better way out,” the user asked the Reddit community.

Redditors suggest actions for addressing unfair retrenchment

Under the post, many Redditors shared their thoughts on the situation, offering various courses of action for those affected.

One commenter recommended reporting the issue to the Ministry of Manpower (MOM), stating it is inappropriate to pressure employees into resigning without a justifiable cause.

They emphasized that if the issue is performance-related, the company should set performance milestones, or if the role is redundant, the company should opt for retrenchment.

Another commenter suggested recording any conversations with management, particularly if there are threats involved, and reporting these incidents to the relevant authorities.

They advised having a recording device ready during unannounced meetings with supervisors to collect evidence of any threats, which could be used to take the case to MOM or pursue legal action.

Some commenters advised against resigning and recommended allowing the Performance Improvement Plan (PIP) process to take its course, noting that the company must provide valid reasons for termination.

One Redditor explained that in their company, PIP is a last resort, with Human Resources (HR) participating in the interview process alongside the manager.

The manager must provide solid evidence to support their case, such as timestamped photos or office entry logs in the case of tardiness.

No legal obligation for retrenchment benefits in Singapore

However, some Redditors pointed out that there is no legal requirement for companies to provide retrenchment benefits.

One commenter questioned the legality of firing employees without compensation for subpar work.

Another responded by stating that while immediate termination without compensation is rare, employers are typically required to provide a notice period or one month’s salary in compensation.

They clarified that firing someone on the spot without compensation usually occurs only in cases of criminal activity.

Speculation mounts over unnamed insurance firm in Reddit allegations, supected to Income Insurance or Allianz

Commenters speculated on the specific company involved, suggesting the situation might pertain to Income Insurance or Allianz, whose circumstances are uncannily similar given the media attention they have received over the proposed sale of the majority shares.

They noted that in Singapore, there are no legally mandated retrenchment benefits, only guidelines from the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP).

As a result, it is legal to retrench employees without benefits, especially if the redundancy can be justified, such as in a corporate takeover.

Another wrote, “Not surprising there… they gave up control of the company. The first thing is cost cutting in all M&A. They call it “business synergy” In layman’s terms is. Fire the extras and the ones left take on more job”

The proposed acquisition of Income Insurance by Allianz for S$2.2 billion (US$1.6 billion) has raised concerns among Members of Parliament and the public about its potential impact on the National Trades Union Congress (NTUC)’s social mission and its employees.

During a parliamentary session on 6 August, Minister of State Alvin Tan assured parliament that NTUC remains committed to its mission of caring for workers and fulfilling its social responsibilities.

MP He Ting Ru (WP-Sengkang) raised specific concerns about the proposed deal and its potential impact on the 1,900 employees of NTUC Income.

She questioned how the deal and subsequent restructuring would affect the workforce, particularly the more junior staff.

“It is natural that existing staff, especially those who are more junior, will be concerned and wonder whether and how they will be supported through this,” Ms He stated during the session.

In response, Deputy Chairman of the Monetary Authority of Singapore (MAS), Chee Hong Tat, advised caution and noted that the deal has not yet been approved.

He emphasized that while MAS does not regulate the employment practices of financial institutions, it expects these institutions to comply with employment laws and guidelines.