In any good relationship, parties behave fairly towards each other, and this extends to the employer-employee relationship. The Employment Act acts as the minimum standard of this relationship and is intended to protect both parties, which includes most workers, except those not covered under the Employment Act. Knowing your rights is important especially if the employer-employee relationship turns sour.
Read Also: Singapore Employment Act: 10 Statutory Requirements To Pay Employees
#1 Employment Can Be Terminated Without Notice
Employers can choose to terminate the employment contract immediately if they compensate the employee for the income they would have otherwise earned in the notice period. For example, if the notice period is one month, the employer could compensate the employee with one months’ salary and terminate the contract with immediate effect.
Similarly, the employee can choose to do the same if they compensate the employer with the same amount.
With that said, there are times when employment can be terminated without notice. For instance, if the employee faces danger at work that they did not originally agree to (or were not originally aware of), they may choose to immediately terminate the employment contract. This extends to danger by violence or disease.
#2 Either Party Can Terminate If Contract Is Breached
Either party can terminate the contract if the other party has breached the terms of service.
If an employee is absent from work for two days without attempting a good reason, it is deemed that they have been absent from work without the permission of the employer, and the employment act stipulates that it is well within the employer’s right to consider this a breach of contract.
Similarly, an employer who fails to pay salaries within 7 days of the last day of the salary period (typically, the month) can be considered in breach of contract.
The party which breaches the contract is liable to pay the other party for termination. In other words, if an employee with a 1-month notice period who is terminated due to breach of contract is liable to pay 1 months’ salary to the employer, and vice versa.
#3 Late Salary Payment Is An Offence
As an extension to point #2, if salary is paid late, aside from the employee having the right to terminate the employment without notice, the employer can also be fined up to $15,000, jailed for 6 months, or both. In the case where the employer is a repeat offender, the maximum penalties are doubled.
Employees who have unpaid salaries can file a claim through the Tripartite Alliance for Dispute Management (TADM) or their unions. Claims are limited to $20,000 per claim (or $30,000 for claims through union), so it is important for an employee to file the claim as early as possible.
Claims must also be filed within 1 year of when the salary was owed, or in the case where the employee has resigned, within 6 months of the last day of work.
Read Also: Minimum Requirements For Key Employment Terms (KETs) On Employees Contracts
#4 Parties Can Waive Their Right To Notice
If an employer needs to terminate the contract, an employee can choose to waive their own right to the notice period. This may be useful in cases where the employee wishes to pursue another opportunity and wishes to start at their next job immediately.
An employer may similarly waive their right to notice if they have excess manpower, have a replacement hire ready, or wish to help the employee transition into the next job.
#5 Employers Can Dismiss Employees Without Notice
An employer may dismiss an employee without notice on the grounds of misconduct. Examples of misconduct would be things like theft, dishonesty, immoral conduct at work, or insubordination. However, this is a very serious consequence, and should only happen under the most severe situations.
In order to dismiss an employee without notice, an employer must conduct an inquiry where the employee’s alleged misconduct is clearly stated, the employee has a chance to argue their case, and the inquiry should also be heard by unbiased parties.
During the inquiry period, the employee can be put on suspension for up to 1 week, and half their salary must still be paid during the suspension. Suspensions for more than 1 week require approval from the Commissioner for Labour.
After the inquiry, if it is determined that there was no misconduct, the employee must be reinstated along with the salary that they lost. If misconduct is found, the employer can choose to downgrade the employee, suspend the employee from work without pay for up to 1 week, or terminate employment without notice.
Read Also: Understanding TAFEP Guidelines On Fair Employment Practices & Fair Consideration Framework
#6 Annual Leave Can Be Used To Bring Forward Last Day
The last day of work is significant because it determines the earliest that one can start work with the next employer. An employee is entitled to use their annual leave to offset their notice period, thus allowing them to begin work with the next employer at an earlier date. However, since their last date has been brought forward (and they will thereafter be working for a new employer), the annual leave which has been used to offset the remaining notice period will not be paid for by the first employer.
Nevertheless, an employee is still entitled to utilise any unused annual leave during the notice period. Since the last day of work is not brought forward in this situation, they are still under employment from the first employer and cannot start working for the second employer, and the annual leave must thus be paid for.
#7 Other Forms Of Leave Cannot Be Used To Offset Notice Period
Maternity leave, Childcare leave and Sick leave cannot be used to offset the notice period. However, employees are still entitled to take these forms of leave during the notice period as though they were still normally employed.
While not considered leave, reservist training will not be considered part of the notice period. Hence, if reservist training comes up after the notice of resignation, the last day of work will not count the period spent in reservist training.
Read Also: 7 Things To Note About Getting Medical Certificates For Sick Leave In Singapore
#8 It Is Illegal To Dismiss An Employee On Maternity Leave
Employees cannot be given notice of dismissal such that the last day will expire during the period which people typically take maternity leave. According to the Employment Act, the period that is protected begins from 4 weeks (more precisely, 28 days) before confinement till 8 weeks after confinement.
Employment Act Is Minimum Standard
Employers and employees both have different interests. Employers need to ensure that they have sufficient manpower to conduct business and earn revenue, while employees wish to be treated fairly at work and have sufficient freedom to move on to another job or pursue other opportunities. Ultimately, while the Employment Act stipulates basic protections for both employers and employees, there is nothing stopping both parties from going above and beyond to smoothen the transition for each other. Nevertheless, employees who have been unfairly terminated can still seek redress.
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