6. Redundancy payments to be paid to Fund
Feedback & supportNotwithstanding the provisions of any written law, rule of law or any contract or agreement to the contrary, any redundancy payment that would, apart from this section, be payable to an employee on his ceasing to be employed by his employer, shall, upon the employee authorising his employer in that regard in the prescribed form, within 7 days of the relevant date, be paid to the Fund to be credited to an account for the employee in the Fund; and the receipt of the Director shall be a proper discharge to the employer for the sum so paid.
redundancy payment
“redundancy payment” means any sum of money that an employer has agreed or arranged to pay to an employee —(a)whose employment is terminated by reason of redundancy or by reason of the employer ceasing to carry on business for whatever reason or transferring the whole or part of his undertaking or property, as the case may be;(b)who is not a citizen of Singapore, upon completion of a contract of employment for a fixed term; or(c)who is not a citizen of Singapore, in a lump sum on retirement or by way of commutation of pension;
Upon a redundancy payment being paid to the Fund and credited to the account of an employee the employee shall thereupon, without further act or formality, become a member of the Fund.
With every such payment, so authorised, the employer shall furnish such particulars to the employee as the Director may require.
employer
“employer” means —(a)any person, company or association or body of persons, corporate or unincorporate;(b)the Government; and(c)any Commonwealth or foreign government and any agency or instrumentality thereof, including the armed forces thereof,who, or which, has employed an employee in Singapore;
If an employer is unable to comply with subsection (1) by reason of the neglect, failure or refusal of his employee to give the authorisation referred to in that subsection it shall be lawful for that employer to retain the redundancy payment in respect of that employee until such time as the employee authorises the employer to pay the redundancy payment into the Fund, notwithstanding any contract, agreement or arrangement to the contrary.
employee
“employee” means an individual who has worked under a contract of employment with an employer, and in respect of whom that employer has agreed or arranged to pay a redundancy payment, whether the contract was for manual labour, clerical work or otherwise, was express or implied, oral or in writing and whether it was a contract of service or apprenticeship; and any reference to “employment” shall be construed accordingly;
If an employee has not, for whatever reason, within 3 months of the relevant date, given the authorisation referred to in subsection (1) the employer shall, under the authority conferred by this subsection and notwithstanding any contract, agreement or arrangement to the contrary, pay into the Fund to the credit of that employee the redundancy payment in respect of that employee as if that employee had given an authorisation under subsection (1).
relevant date
“relevant date” means the date on which an employee ceases to be employed by an employer;