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Employment Termination in Singapore: A Comprehensive Guide to Unfair and Wrongful Dismissals



Introduction:

I recently read an interesting article written by Muntaz Binte Zainuddin a lawyer in Singapore on employment termination in that country. According to Ms. Zainuddin, Termination of employment is a significant aspect of the employer-employee relationship, and in Singapore, it is governed by both the employment contract and the Employment Act ("EA"). Understanding the intricacies of termination is crucial for both employers and employees to ensure fair and lawful practices. In this guide, we'll explore the various aspects of termination, highlighting the legal framework and providing insights into unfair and wrongful dismissals.

Legal Framework:

Termination of employment in Singapore can occur in three main ways: at the expiration of a contract, by written notice, or without notice (summary dismissal). The right to terminate without notice is strictly regulated and can be exercised under specific conditions, such as a wilful breach by the other party of a condition of the contract of service.

Unfair and Wrongful Dismissals:

Singapore laws offer protection to employees against unfair, unlawful, and wrongful dismissal. Unlawful and wrongful dismissal extends beyond cases of termination without notice, encompassing situations where an employee's termination lacks just or sufficient cause.

Examples of Wrongful Dismissals:

Dismissal on Discriminatory Grounds: Termination based on age, gender, disability, family responsibilities, nationality, pregnancy, race, or religion may be considered discriminatory. For instance, dismissing an employee due to language preferences not related to job requirements could be discriminatory.

Deprivation of Benefits or Entitlements: Dismissing an employee to deny them entitled benefits, especially in cases of ill-health or pregnancy, may be deemed wrongful.

Punishment for Exercising Employment Rights: If an employee is terminated as retaliation for exercising legitimate employment rights, such as negotiating against a salary reduction or reporting workplace harassment, it constitutes wrongful dismissal.

Grounds Which Are Unsubstantiated: Citing poor performance or misconduct as grounds for dismissal requires the employer to prove these claims. Wrongful dismissal may occur if the employer fails to substantiate these grounds.

Involuntary Resignation: When an employee is forced to resign under duress, claiming they had no choice, it falls under involuntary resignation and can be a basis for wrongful dismissal.

Safest Practices for Termination:

To ensure a safe and legally sound termination, employers should provide proper notice and refrain from discriminatory, retaliatory, or benefit-depriving actions. Even in cases of contractual terminations, employers must be cautious to avoid hidden discriminatory motives or disguised retrenchment.

Recourse for Unlawful/Wrongful Dismissal:

Employees have various avenues for recourse in cases of unlawful or wrongful dismissal. They can file complaints with the Tripartite Alliance Dispute Management ("TADM") and, if necessary, escalate matters to the Employment Claims Tribunal (ECT). Monetary compensation is assessed based on factors like loss of income and the harm caused to the claimant.

Conclusion:

Termination of employment is a complex process with legal implications. Employers and employees alike should be aware of their rights and responsibilities to foster fair and transparent practices. Seeking legal advice before pursuing claims or navigating internal dispute resolution mechanisms can contribute to a smoother and more just resolution of termination-related issues.

[Note: The article provides credit to Muntaz, a partner in I.R.B. Law, for her expertise in overseeing the firm's work and managing the partnership.]

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