Handling Dismissals

Provided by EnterpriseOne

When an employee is guilty of misconduct or has breached the employment contract, you may
wish to dismiss him/her. You need to ensure that you handle the situation properly and
professionally or you could end up being sued by your employee.

            What Are Unacceptable Reasons For Dismissal?
            What Must I Do When Dismissing My Employee?
            Can I Dismiss An Employee Who "Ran Out" On Me?
            Do I Still Have To Pay Salary If My Employee Didn't Serve His/Her Notice?
            Can My Employee Take Action Against Me?

What Are Unacceptable Reasons For Dismissal?

• You cannot terminate Singapore Citizens and Permanent Residents on the grounds
of age if they are below the retirement age. The retirement age is currently 62.

•    You cannot dismiss a female employee who is away from work on statutory maternity
       leave. You may end up being fined or even jailed for doing so. However, this rule
       does not apply to the last 4 weeks of the 12-week maternity period if the last 4
     weeks is taken flexibly over a period of time.

•   If you dismiss a female employee within 3 months of her delivery date, you may
       still be liable to pay her maternity benefits if the dismissal was without
       sufficient cause.

See: Retirement Age Act
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What Must I Do When Dismissing My Employee?

• You must ensure that you follow the proper termination procedures and ensure that
the dismissal is fair and legally correct.

• You must abide by the termination terms in your contract. For instance, you should
pay attention to:

       o    notice period for termination
       o    payment of salary and balance annual leave up to the date of termination
       o   payment of salary in lieu of notice

•    If the employee is covered under the Employment Act, you must follow the terms and
       conditions in the Act. The Act spells out clearly the notice period, the payment of
       salary and right to terminate without notice.

Can I Dismiss An Employee Who "Ran Out" On Me?

• Generally, the terms of your contract should provide for immediate termination due
to continuous absenteeism. If he/she runs away, that will be grounds for termination.

• You still need to pay him/her up to his last work day minus any salary in lieu of
termination.

•      If your employee is under the Employment Act, then continuous absenteeism for more
      than two days is immediate grounds for termination. The employee must also pay you
        salary in lieu of notice.

Do I Still Have To Pay Salary If My Employee Didn't Serve His/Her Notice?

• Always look to the employment contract to see if these terms have been spelt out.
Generally, if the employee does not serve notice, he/she must pay salary in lieu of
notice.

• The same applies to employers who terminate employees' employment without the
required notice period.

• Employees under the Employment Act are required to pay salary in lieu of notice.

See: The employment contract

Can My Dismissed Employee Take Action Against Me?

• If your employee feels he has been wrongfully dismissed, he/she can sue you for breach
of contract

•   If he/she is protected under the Employment Act, he/she can also lodge an appeal with
       the Minister of Manpower to get his/her job back. The appeal must be lodged within one
       month of the dismissal.

See: Handling disputes