The Employment Act (Cap. 91) [EA] of 8 June 1968, as last amended by the Industrial Relations (Amendment) Act 2010, No 36 of 2010, of 22 November 2010 (in force since February 1st, 2011)
Date:22 Nov 2010;
(view in NATLEX »)
Size of enterprises excluded (≤): none
Workers' categories excluded: domestic workers, managerial / executive positions, seafarers
Sec. 2 EA: see definition of "employees":
"employee" means a person who has entered into or works under a contract of service with an employer and includes a workman, and any officer or employee of the Government included in a category, class or description of such officers or employees declared by the President to be employees for the purposes of this Act or any provision thereof, but does not include:
(a) any seaman;
(b) any domestic worker;
(c) subject to subsection (2), any person employed in a managerial or an executive position; and
(d) any person belonging to any other class of persons whom the Minister may, from time to time by notification in the Gazette, declare not to be employees for the purposes of this Act."
FTC regulated: No
Valid reasons for FTC use: no limitation
Sec. 9 (1) EA.
Maximum number of successive FTCs: no limitation
No statutory limitation in the legislation reviewed.
Maximum cumulative duration of successive FTCs: no limitation
No statutory limitation in the legislation reviewed.
Maximum probationary (trial) period (in months):
The EA does not refer to any probation period.
However, it is common practice for employees to serve a 6 month-probationary period.
See: http://www.guidemesingapore.com/employment/c288-employment-act-contract-and-benefits.htm
Obligation to provide reasons to the employee
No
The EA does not require the employer to provide the reasons for termination with notice: Sec. 10 (1) EA provides that either party may at any time give to the other party notice of his intention to terminate the contract.
In addition, the EA does not expressly stipulate any obligation to provide the reasons when dismissing without notice (on the grounds of misconduct: sec. 14 EA), for continuous absence from work (sec. 13 (2)), or willful breach of a condition of the contract (sec. 11 (2) EA).
- No valid grounds are listed for termination with notice.
According to sec. 10 (1) EA, either party to a contract of employment may at any time give to the other party notice of his/her intention to terminate the contract of employment.
This does not result in a total freedom to terminate the contract: it must be understood in light of the existence of prohibited grounds.
For summary dismissal, specific grounds are listed:
See sec. 13 (2) EA (summary dismissal for unjustified absence from work) and sec. 14 EA (summary dismissal for misconduct).
Sec. 14 (2) EA provides that dismissal on the grounds of misconduct shall be based on a just cause or excuse.
Economic reasons: not listed as such as a valid ground for dismissal. They are mentioned in two provisions related to benefits arising from "dismissal on the grounds of redundancy or by reason of any reorganization of the employer's profession, business, trade or work": see sec. 45 EA (payment of retrenchment benefit) and 84A EA (maternity and right to benefit in case of dismissal for economic reasons).
* Age: sec. 4 (2) of Retirement Age Act 1993 (No. 14 of 1993) as amended by Act No. 49 of 1998 stipulates that "no employer shall dismiss on the ground of age any employee who is below 60 years of age or the prescribed retirement age".
* Pregnancy and maternity leave: sec. 81, 84 and 84 EA.
* Trade union activities: sec. 82 of the Industrial Relations Act (chap. 136) of 1960 as subsequently amended.
See sec. 81, 84 and 84A EA.
Notification to the worker to be dismissed: written
Sec. 10 (5) EA.
Notice period:
Notice periods are governed by the terms of the contract (sec. 10 (2) EA), and it is only in the absence of such a stipulation that the statutory notice periods apply.
Sec. 10 (3) EA establishes statutory minimum notice periods as follows:
- one day for less than 26 weeks' service;
- one week for 26 weeks to less than two years' service;
- two weeks for two to less than five years' service;
- four weeks for five or more years' service.
tenure ≥ 6 months:
tenure ≥ 9 months:
tenure ≥ 2 years:
tenure ≥ 4 years:
tenure ≥ 5 years:
tenure ≥ 10 years:
tenure ≥ 20 years:
Pay in lieu of notice: Yes
Sec. 11 (1) EA.
Notification to the public administration: No
Notification to workers' representatives: No
Approval by public administration or judicial bodies: No
Approval by workers' representatives: No
Definition of collective dismissal (number of employees concerned): No statutory definition.
Prior consultations with trade unions (workers' representatives): No
Notification to the public administration: No
Notification to workers' representatives: No
Approval by public administration or judicial bodies: No
Approval by workers' representatives: No
Priority rules for collective dismissals (social considerations, age, job tenure): No
Employer's obligation to consider alternatives to dismissal (transfers, retraining...): No
Priority rules for re-employment: No
There is no statutory procedure for collective and individual dismissals on economic grounds.
However the Singapore's Ministry of Manpower (MOM), the Singapore National Employers Federation (SNEF), and the National Trades Union Congress (NTUC) have jointly issued a Tripartite Guidelines on Managing Excess Manpower in 2008, updated in 2009.
Under the Tripartite Guidelines On Managing Excess Manpower, the employer is encouraged, in case of retrenchment, to consult with the trade union if the company is unionised. In addition, the employer should notify the Labour Relations Department and the Manpower Deployment Department of the Ministry of Manpower to help the affected workers find alternative employment expeditiously (link provided below under "scope of additional information").
Severance pay:
No provision on severance pay in the Employment Act.
tenure ≥ 6 months: 0 month(s)
tenure ≥ 9 months: 0 month(s)
tenure ≥ 1 year: 0 month(s)
tenure ≥ 4 years: 0 month(s)
tenure ≥ 5 years: 0 month(s)
tenure ≥ 10 years: 0 month(s)
tenure ≥ 20 years: 0 month(s)
Redundancy payment:
tenure ≥ 6 months: 0 month(s)
tenure ≥ 9 months: 0 month(s)
tenure ≥ 1 year: 0 month(s)
tenure ≥ 2 years: 0 month(s)
tenure ≥ 4 years: 0 month(s)
tenure ≥ 5 years: 0 month(s)
tenure ≥ 10 years: 0 month(s)
tenure ≥ 20 years: 0 month(s)
1) Dismissal not based on economic reasons: no statutory severance pay.
2) Economic dismissal: no statutory redundancy payment for employees with less than two years of service (art. 45 EA).
According to the 2017 Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment:
- Para.17: Employees with 2 years’ service or more are eligible for retrenchment benefits. Those with less than 2 years’ service could be granted an ex-gratia payment.
- Para. 18: The quantum of retrenchment benefit depends on what is provided for in the collective agreement or contract of service. If there is no provision, the quantum is to be negotiated between the employees (via their union in the case of a unionised company) and the employer concerned.
- Para. 19: The prevailing norm is to pay a retrenchment benefit varying between 2 weeks to 1 month salary per year of service, depending on the financial position of the company and taking into consideration the industry norm. However, in unionised companies where the quantum of retrenchment benefit is stipulated in the collective agreement, the norm is one month’s salary for each year of service.
- Para. 20: If the retrenchment exercise follows shortly after a wage cut, the salary prior to the wage cut should be used to compute the retrenchment benefit, so that cuts are not implemented just to reduce retrenchment payments.
Compensation for unfair dismissal - free determination by court: Yes
Sec. 14 (4) EA: If the Minister of Manpower considers the dismissal to be unfair, he may:
1) order reinstatement and payment of wages the employee would have earned had he or she not been dismissed, or in lieu if reinstatement
2) direct the employer to pay such amount of compensation as freely determined by the Minister.
Reinstatement available: Yes
Sec. 14 (4) a) EA: If after consideration of the Labour Commissioner's inquiry, the Minister of Labour is satisfied that the employee has been dismissed (on the grounds of misconduct) without "just cause or excuse", he may order reinstatement.
Preliminary mandatory conciliation: No
No statutory provision in the legislation reviewed.
Competent court(s) / tribunal(s): administrative body
An employee who considers that he or she has been summarily dismissed on the grounds of misconduct without just cause or excuse may, within one month of the dismissal and in writing, seek reinstatement (and/or compensation) from the Minister of Manpower (sec. 14 (2) EA. The decision of the Minister is final and cannot be challenged in any court (sec. 14(5), EA).
Existing arbitration: No
Claims of unfair dismissal (without just cause) dealt with in this section are only available to the employee in the event of a summary dismissal dismissal (for misconduct).
In the event of any termination of the contract by the employer, the employee has the right to sue in the civil courts for breach of contract at common law.