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  • | 9 June 2025

Employer vs. Employee: Legal Remedies in Wrongful Dismissal Cases

Do you think you were unjustifiably dismissed from work? Are you an employer who is not sure what constitutes wrongful dismissal? You’re not alone—and you’re in the right place. With PDLegal, we have assisted numerous clients in Singapore on establishing where they stand in employment disputes, particularly wrongful dismissal. In getting through the sensitive employer-employee relationship, being aware of your obligations and rights matters most. Here’s the legal relief for wrongful dismissal cases and how you can guard yourself—whether you are an employer or employee.

What Counts Wrongful Dismissal?

Wrongful dismissal refers to a situation where an employee is terminated in a manner that breaches the terms of the employment contract or violates statutory protections. This can happen even if a contract includes a termination clause.

Common examples include:

  • Dismissal without notice or payment in lieu
  • Termination on discriminatory grounds (e.g. age, gender, religion)
  • Dismissal without due inquiry in cases of alleged misconduct
  • Retaliation for asserting workplace rights (e.g. maternity leave, whistleblowing)

Not all terminations are unlawful. The context, process, and reasons given are key factors in determining whether a dismissal is wrongful under employment law.

Legal Protections for Employees

In Singapore, the Employment Act covers most employees earning up to a certain income threshold. However, even outside this scope, basic contractual principles and common law protections apply.

Employees who are wrongfully dismissed may seek the following remedies:

  • Reinstatement: In rare cases, the employee may be reinstated to their former role.
  • Compensation: This may cover lost wages and benefits during the notice period.
  • Contractual damages: If the dismissal breached specific contract terms, damages may be awarded accordingly.

The Tripartite Guidelines on Wrongful Dismissal, issued by the Ministry of Manpower, offer further clarity on acceptable grounds for termination.

Employers and Due Process

Employers have the right to dismiss employees for valid reasons, such as poor performance, redundancy, or misconduct. However, it is critical to follow the due process. Failure to do so can turn an otherwise lawful dismissal into a wrongful one.

Key practices for employers include:

  • Providing written warnings where applicable
  • Conducting proper investigations before dismissal for misconduct
  • Issuing clear termination notices or salary in lieu
  • Keeping records of disciplinary actions and communication

An employment contract alone does not give employers full discretion—legal compliance and procedural fairness must also be considered.

Differences in Employer and Employee Rights

The law recognizes different sets of rights for employers and employees, but both sides are expected to act in good faith.

For Employees:

  • Right to know the reason for dismissal
  • Right to be heard before termination (in misconduct cases)
  • Right to contractual notice or compensation

For Employers:

  • Right to terminate with just cause
  • Right to set performance expectations and standards
  • Right to restructure or downsize with proper notice

Balancing these rights is a core principle in employment law and plays a major role in resolving dismissal disputes.

Making a Claim for Wrongful Dismissal

If an employee believes they were wrongfully dismissed, they may file a claim through one of the following channels:

  • Tripartite Alliance for Dispute Management (TADM): A first step for resolving employment disputes through mediation.
  • Employment Claims Tribunal (ECT): Handles statutory and contractual claims up to a prescribed limit.
  • Civil Courts: In cases involving senior management or higher claim amounts, civil proceedings may be appropriate.

Timeliness is important. Most wrongful dismissal claims must be filed within one month of the dismissal date.

Documentation and Evidence

Both employers and employees should maintain proper documentation. This includes:

  • Employment contracts
  • Termination letters
  • Performance records
  • Internal emails and warnings
  • Investigation reports, if applicable

These materials can be vital in establishing whether a dismissal was wrongful or lawfully executed.

Contract Terms vs. Statutory Rights

An employment contract may specify notice periods and grounds for termination, but it cannot override protections under the Employment Act. For example, a contract cannot allow dismissal without inquiry in cases of alleged misconduct if the Employment Act requires otherwise.

Understanding how contract terms interact with statutory rights is crucial when assessing wrongful dismissal cases.

Why Work With PDLegal?

We’re not just legal professionals—we’re your partners in resolving employment disputes with clarity and care. At PD Legal, our team combines strong legal knowledge with real-world insights. We’ve worked with clients from all industries in Singapore and understand how to handle employment cases sensitively and strategically.

Conclusion

Wrongful dismissal cases in Singapore reflect the ongoing balance between employer rights and employee protections. Both parties have legal remedies available but navigating them requires a clear understanding of employment laws and proper procedures.

At PDLegal, we handle employment matters with practical insight and legal precision. Contact us now and let us help you move forward with confidence!

Contact PDLegal today for comprehensive legal support in Singapore’s dynamic maritime sector



 

FAQs

What is the difference between wrongful dismissal and unfair dismissal?

In Singapore, wrongful dismissal refers to termination that breaches the terms of an employment contract or the Employment Act, such as dismissing an employee without cause or due process. Unfair dismissal generally refers to being dismissed on discriminatory or unjust grounds, and it falls under wrongful dismissal if it violates statutory protections.

Can an employer terminate an employee due to medical reasons?

Termination due to medical reasons is allowed only if the employment cannot continue reasonably, such as when the employee is permanently unfit for work. However, the employer must follow proper procedure and ensure the dismissal is not discriminatory under Singapore employment laws.

Can an employer terminate an employee due to poor performance?

Yes, an employer may terminate an employee for poor performance, but it must be substantiated and follow due process. Under employment regulations in Singapore, fair warning and opportunities for improvement should be provided before termination.

What are the damages for wrongful dismissal in Singapore?

Damages for wrongful dismissal often include compensation in lieu of notice, unpaid salary, and possibly further damages for breach of employment contract. The amount varies depending on the circumstances of the dismissal and the terms of the employment agreement.

What is the unfair dismissal law in Singapore?

The Employment Act and the Tripartite Guidelines on Wrongful Dismissal govern unfair dismissal in Singapore. These frameworks ensure that employment terminations are not carried out on discriminatory, retaliatory, or unjust grounds.

What is Section 14.2 of the Employment Act Singapore?

Section 14.2 of the Employment Act outlines that an employee accused of misconduct must be informed and given an opportunity to be heard before dismissal. This ensures fair process in employment termination related to disciplinary issues.

What is the compensation for termination of employment in Singapore?

In most cases, compensation includes salary up to the last day of employment, notice pay or payment in lieu, and any unused leave entitlements. The exact amount depends on the terms of the employment contract and the reason for termination.

What is the termination policy in Singapore?

The Employment Act requires that both employer and employee give notice or salary in lieu when ending the employment relationship. Termination must follow contract terms and statutory guidelines to avoid wrongful dismissal claims.

Are terminated employees entitled to final pay?

Yes, under employment laws in Singapore, terminated employees are entitled to their final salary, including unused leave and pro-rated bonuses, if applicable. This must typically be paid within seven days from the end of employment.

Is severance pay mandatory in Singapore?

Severance pay is not mandatory in Singapore unless stated in the employment contract. For retrenchment, it’s encouraged but not legally required under employment laws.

Disclaimer: This article is intended to provide general information only and does not constitute legal advice. It should not be used as a substitute for professional legal consultation. We recommend seeking legal advice before making any decisions based on the information in this article. PDLegal fully disclaims any responsibility for any loss or damage that may result from reliance on this article.

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