EMPLOYMENT LAW: Freedom of termination
Termination of the Employment Contract
Unlike many other countries, Singapore does not operate on a principle of “employment at will,” where either party can terminate a contract without reason or notice. Instead, there are specific rules governing the termination of employment contracts.
Employment Termination Guidelines
A written employment contract is highly advisable as it clearly outlines the terms and conditions, including termination procedures. This helps to protect the rights of both employers and employees.
Both employers and employees must adhere to stipulated notice periods before terminating the employment contract, which can vary based on the employee’s length of service.
Employers cannot terminate employment without a valid reason, such as misconduct or redundancy.
If an employer unfairly dismisses an employee, the latter may seek recourse through the Ministry of Manpower (MOM) or the Industrial Arbitration Court.
Additionally, if an employer makes working conditions so intolerable that an employee is forced to resign, it may be considered constructive dismissal.
In cases of economic downturn or redundancy, employers may need to terminate employment. However, there are specific guidelines and requirements to follow.
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