Employment relationships in Singapore are governed by a framework of laws and contractual obligations. While most employment arrangements end amicably, wrongful termination remains a significant area of dispute. For employees and employers alike, understanding what legally constitutes a wrongful dismissal is crucial for protecting one’s rights and interests.
Wrongful termination, also referred to as unfair dismissal, occurs when an employer ends an employment relationship in a manner that breaches the Employment Act or the contractual terms agreed upon. As a general litigation lawyer in Singapore would advise, wrongful dismissal cases can be complex, often hinging on specific facts, documentation, and the legal grounds for termination.
Statutory Protection Under the Employment Act
The Employment Act is the key legislation governing employment terms in Singapore. It provides that an employer may terminate an employee with notice or salary in lieu, but dismissal must not be wrongful. Since April 1, 2019, the Act has expanded its coverage, and all employees (except public servants, domestic workers, and seafarers) are protected against wrongful dismissal.
The Ministry of Manpower (MOM) categorises wrongful dismissal into three broad categories:
1. Dismissal without just cause or excuse
2. Dismissal due to discrimination (e.g. age, gender, race, religion)
3. Dismissal to deprive employee of benefits or entitlements
Employers must provide a valid reason for dismissal. Failure to do so may result in the employee lodging a wrongful dismissal claim with the Tripartite Alliance for Dispute Management (TADM), and if unresolved, escalation to the Employment Claims Tribunals (ECT).
Common Grounds for Legitimate Termination
Legitimate grounds for termination include poor performance, misconduct, redundancy due to business restructuring, or mutual agreement. However, even with valid grounds, proper procedures must be followed:
- Conduct of inquiry for misconduct cases
- Proper documentation of performance issues
- Compliance with contractual notice periods
Wrongful termination claims often arise when due process is not observed. A general litigation lawyer in Singapore can assess whether an employer adhered to both the law and employment contract.
Constructive Dismissal: An Often-Misunderstood Concept
Another type of wrongful termination is constructive dismissal, where an employee resigns due to the employer’s conduct making continued employment intolerable. This may involve:
- Unilateral changes to job scope or salary
- Harassment or abusive behaviour
- Unreasonable demotion
The burden of proof lies with the employee to demonstrate that the resignation was not voluntary but the result of the employer’s breach of duty. Constructive dismissal claims can be challenging to prove and often require legal support.
Evidence and Documentation
Strong documentation is vital in wrongful termination disputes. Employers should maintain clear records of:
- Performance reviews
- Disciplinary proceedings
- Communication with the employee
- Employment contracts and amendments
Likewise, employees should retain emails, messages, and documents that demonstrate potential unfair treatment. When disputes arise, these records serve as crucial evidence in legal proceedings or during mediation.
Remedies for Wrongful Termination
If the ECT finds that a dismissal was wrongful, remedies may include:
- Reinstatement to the former position (though rare)
- Monetary compensation
Compensation is determined based on the employee’s length of service, last drawn salary, and the circumstances surrounding the dismissal. While reinstatement is theoretically possible, most employees prefer compensation as a practical resolution.
Wrongful Dismissal in Fixed-Term and Probationary Contracts
Employees on fixed-term contracts and those on probation are also protected under the Employment Act. Terminating such employees without adhering to contractual provisions or without just cause can still amount to wrongful dismissal.
It is a misconception that probationary employees have no rights. While notice periods may be shorter, employers must still act fairly and provide reasons for termination if challenged.
Engaging Legal Assistance
Given the intricacies of employment law, it is advisable for both employers and employees to seek legal counsel early. A general litigation lawyer in Singapore can help determine the merits of a claim, facilitate negotiations, and ensure compliance with legal procedures. In certain cases, issues around employment can intersect with other legal domains such as defamation or probate litigation, particularly in family-run businesses.
Conclusion
Wrongful termination claims can be emotionally and financially draining. Whether you are an employee facing an unfair dismissal or an employer navigating difficult personnel decisions, having the right legal guidance is essential.
If you’re an employee facing an unjust dismissal or an employer ensuring compliance with employment laws, Doris Chia provides practical, effective solutions tailored to your needs. As a seasoned general litigation lawyer in Singapore, Doris is equipped to guide you through complex employment disputes with clarity and confidence. Reach out today for experienced support in resolving your wrongful termination concerns.
