1. Introduction

The termination of employment is often a difficult and emotional process, especially when it comes unexpectedly. In Singapore, while employers are generally entitled to dismiss employees, there are specific legal safeguards to ensure that dismissals are not arbitrary, discriminatory, or procedurally unfair. If you are an employee wondering whether your dismissal was unfair or an employer seeking to avoid potential liability, this article provides a practical overview of how unfair dismissal is assessed under Singapore law.

2. What Is Unfair or Wrongful Dismissal?

Unfair dismissal (sometimes referred to as wrongful dismissal) occurs when an employee is terminated without just cause or excuse, or in a manner that violates statutory protections or employment contract terms.

Common examples include:

• Terminating an employee without reason or based on false allegations 
• Dismissal shortly after the employee raises a complaint, such as a workplace grievance
• Letting go of an employee because of pregnancy, illness, or whistleblowing activity

Since April 2019, such disputes are addressed under the expanded scope of the Employment Act 1968, specifically section 14(2), which prohibits wrongful dismissal and allows affected employees to file claims at the Tripartite Alliance for Dispute Management (TADM).

3. What Are Valid Grounds for Dismissal?

Employers can legally dismiss employees for just cause or excuse, including but not limited to:

• Misconduct (e.g. theft, dishonesty, insubordination)
• Poor performance (after due process and performance reviews)
• Breach of employment contract

However, such grounds must be substantiated and documented. A termination that fails to follow fair procedure or lacks proper basis may be challenged.

4. How to Assess if a Dismissal Was Unfair

Employees should consider the following questions:

• Was I informed of the reason for my dismissal?
• Was I given a chance to explain or defend myself?
• Were other employees in similar situations treated differently?
• Did the dismissal occur soon after I engaged in protected activity (e.g. filing a claim, going on maternity leave)?

If the answer to one or more of the above is “yes”, there may be grounds to challenge the dismissal.

5. What You Should Do If You Suspect Unfair Dismissal

If you believe you were unfairly dismissed, consider these steps:

(a) Request written clarification from your employer on the reason for dismissal.

(b) Gather evidence: emails, appraisals, messages or witnesses that support your position.

(c) File a claim with TADM within 1 month of your last day of employment.

(d) Seek legal advice on the merits of your case and compensation options.

TADM will typically facilitate mediation. If the dispute remains unresolved, the case may proceed to the Employment Claims Tribunal (ECT) for a binding decision.

6. Remedies Available to Employees

If a claim of wrongful dismissal is successful, the tribunal may order:

• Reinstatement to the employee’s former position (in rare cases)
• Compensation, based on income lost due to unfair termination
• Reimbursement of notice-in-lieu, if the dismissal was improperly handled

The quantum of compensation varies and depends on factors such as the employee’s salary, the duration of employment, and the circumstances of dismissal.

7. Guidance for Employers

Employers should take the following measures to avoid wrongful dismissal claims:

• Ensure all dismissals are based on documented reasons and supported by internal records
• Conduct proper performance management and disciplinary processes
• Avoid dismissals that may appear retaliatory or discriminatory
• Follow fair termination procedures and provide written notice or payment in lieu

Proactively seeking legal advice before dismissing an employee, especially under contentious circumstances, can prevent costly legal proceedings.

8. Conclusion

Unfair dismissal claims in Singapore are taken seriously and are governed by both statutory and contractual frameworks. Whether you are an employee exploring your rights, or an employer reviewing your termination procedures, understanding what amounts to unfair dismissal is crucial. Our firm regularly advises clients on employment termination matters and represents both employees and employers in resolving workplace disputes.

If you require tailored legal advice or representation, we would be pleased to assist.

Waltson Tan Director +65 8079 0028 waltson.tan@28falconlaw.com

Office address: 101A Upper Cross Street #13-11, People’s Park Centre Singapore 058358