Lessons Lazada's layoffs teach about collaborating with unions

There is generally no legal mandate for companies to consult unions about layoffs; however, the situation is different for unionised companies.

This explains why Lazada's failure to notify the Food, Drinks and Allied Workers Union (FDAWU) about its January retrenchments was met with disappointment by the National Trades Union Congress (NTUC).

"We are extremely disappointed in this move by Lazada. NTUC would like to reiterate that it is critical for companies to work with their union to ensure that a fair and equitable process was carried out to safeguard the interests of all workers, especially our Singaporean core,” it stated.

Ian Lim, the head of Employment and Labour at TSMP Law Corporation, pointed out that Lazada is covered by the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment. This advisory mandates that a unionised company must notify its pertinent union about retrenchments before informing the employees.

"[This is the rule if the company is unionised] unless any memorandum of understanding or collective agreement [entered into by the company] stipulates exactly how the union must be notified," Lim told Singapore Business Review.