{"id":11225,"date":"2023-09-17T14:18:22","date_gmt":"2023-09-17T06:18:22","guid":{"rendered":"https:\/\/dollarsandsense.sg\/business\/?p=11225"},"modified":"2023-09-17T14:19:13","modified_gmt":"2023-09-17T06:19:13","slug":"closing-down-probation-what-happens-when-things-dont-go-as-planned-in-a-company","status":"publish","type":"post","link":"https:\/\/dollarsandsense.sg\/business\/closing-down-probation-what-happens-when-things-dont-go-as-planned-in-a-company\/","title":{"rendered":"Closing Down & Probation: What Happens When Things Don\u2019t Go As Planned In A Company"},"content":{"rendered":"\n

It\u2019s always good to be optimistic in life. Studies have shown<\/a> that people who are optimistic tend to be healthier, take few sick days and tend to be happier and do better in their jobs. And if you are running a business, you would want happier employees.<\/p>\n\n\n\n

Likewise, if you are a worker, you would want a happier workplace with this happiness well demonstrated by the leaders of the company. Whether it\u2019s your direct manager or the CEO\/founder of the company, nobody wants to work for a company where the leadership team is constantly stressed and unhappy.<\/p>\n\n\n\n

But the fact of the matter is that things in the office don\u2019t always go as planned.<\/p>\n\n\n\n

32,340 Businesses Have Closed In 2023 Thus Far<\/h3>\n\n\n\n

In 2022, approximately 50,000 businesses ceased operations. Thus far in the first eight months of 2023, 32,340 have closed, on pace to match the previous year’s figures. Companies may close due to poor business performance, insolvency, or the departure of key personnel.<\/p>\n\n\n\n

The closure process in Singapore involves two primary methods: 1) striking off the company’s name from the Register and 2) winding up the business.<\/p>\n\n\n\n

To strike off a company, certain criteria must be met, such as not having started or ceased trading, having no outstanding debts to government agencies, and not being involved in legal or regulatory actions. Once approved, it takes about four months for the company to be officially struck off, with a director facing disqualification after three such closures within five years.<\/p>\n\n\n\n

Winding up can occur voluntarily or compulsorily. Voluntary winding may occur if the company is solvent or able to pay its debts in full within 12 months after the commencement of the winding up. The directors of the company are required to file a declaration of solvency.<\/p>\n\n\n\n

If a company is insolvent or not able to meet its liabilities, the company can convene a meeting with its creditors to consider a voluntary winding up of the company. If a resolution is passed in favour of the winding up, the company will appoint a liquidator to wind up its affairs. In such cases, creditors may not be able to receive their entire amount owed, but may view this option as an amicable way to receive a portion of their money.<\/p>\n\n\n\n

Read Also: Closing Down A Company In Singapore: Striking Off Company & Winding Up<\/a><\/strong><\/em><\/p>\n\n\n\n

Probation: The Dating Phase For Employment<\/h3>\n\n\n\n

Employment relationships between employers and employees don\u2019t always work out. This is why in Singapore, many employers utilise probation periods to assess new employees’ performance and cultural fit.<\/p>\n\n\n\n

It\u2019s worth noting these probation periods are not legally mandated and are instead governed by employment terms outlined by the Ministry of Manpower (MOM).<\/p>\n\n\n\n

Probation periods serve as a protective measure for employers, allowing them to terminate underperforming employees with minimal notice. This can be especially useful when the standard notice period in employment contracts is longer. Conversely, employees also benefit from probation periods as they can assess their employers and organisations and leave with shorter notice periods if they find the fit unsatisfactory.<\/p>\n\n\n\n

While probation periods in Singapore typically last 3-6 months, their duration is not fixed, and employers can determine them as they see fit.<\/p>\n\n\n\n

Singapore’s Employment Act provides equal protection to all employees, regardless of their probationary status, with some distinctions based on tenure, such as entitlement to benefits like paid leave, maternity\/paternity leave, and sick leave, which typically become available after three months of employment.<\/p>\n\n\n\n

Probation periods in Singapore are a common practice but not legally required. They offer flexibility for both employers and employees, serving as a tool to assess suitability while ensuring legal protection for all workers.<\/p>\n\n\n\n

Read Also: Guide To Probation Period For Employees In Singapore (And What Employment Rights They Have)<\/a><\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"Sometimes, the end of a journey can be both painful and a relief. \n","protected":false},"author":1,"featured_media":11226,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[364],"tags":[474,1806,1805,1068,396],"yoast_head":"\nClosing Down & Probation: What Happens When Things Don\u2019t Go As Planned In A Company | DollarsAndSense Business<\/title>\n<meta name=\"description\" content=\"Running a business doesn't always go as planned. 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