Retrenchment benefits for Lazada employees in Singapore raised to ‘unionised norms’: Labour chief

The Straits Times has contacted NTUC for more details on the compensation package and the number of workers who are expected to benefit from it.

The Ministry of Manpower, which facilitated discussions between the union and Lazada, said that while Lazada did not start off in the right manner with the union, it is pleased that all parties have since resolved the issue and going forward, will work together to achieve win-win outcomes for the business and workers.

The spokesperson reiterated that all employers should act responsibly when they are mulling cost-cutting measures and that retrenchment should be their last resort.

Lazada let go of an undisclosed number of its Singapore workforce in January (Jan 3-5), without informing the union, despite these workers being unionised.

Retrenched employees were given two weeks’ salary for each year of service, the minimum according to tripartite guidelines for retrenchment benefits, which recommend between two weeks’ and a month’s salary for each year of service as compensation.

The cuts at Lazada spanned various departments across the company as well as its regional offices in countries including Malaysia, Indonesia and Vietnam.

The e-commerce unit of Alibaba claimed then that the move was part of a business transformation exercise, to “better position the company for a more agile, streamlined way of working to meet future business needs”.

Unionised Lazada employees who are affected by the restructuring exercise can email FDAWU at by 5pm 20th February 2024 for further instructions.

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