Wrongful Termination & Unfair Dismissal in Singapore: A Comprehensive Legal Guide
Losing your job is never easy—but when it happens unfairly or without proper cause, it’s not just personal, it’s a legal matter. In Singapore, wrongful termination (also known as unfair dismissal) is taken seriously under the Employment Act and related regulations.
Wrongful termination isn’t just unjust—it may also be unlawful. Whether you’re an employee suddenly dismissed or an employer striving to comply with Singapore’s employment laws, understanding your rights and obligations is essential.
At NMLaw, we provide tailored legal support to help you navigate these challenges.
We’re here to ensure you’re protected, informed, and empowered every step of the way. Our team at NMLaw breaks down what constitutes wrongful termination, how the law safeguards employees, what remedies may be available, and the key steps employers should take to avoid legal liability.
Reach out to NMLaw today for a wrongful dismissal free consultation and get the expert legal support tailored to your situation.
What is Wrongful Termination?
Wrongful termination is defined when an employer dismisses an employee in violation of the employment contract or relevant employment laws in Singapore. It often involves:
Termination without just cause or excuse
Dismissal that breaches the terms of the employment contract
Discrimination-based termination
Retrenchment carried out unfairly or without proper process
Legal Framework For Employee Dismissal in Singapore
In Singapore, the Employment Act 1968 governs the rights of most employees, especially those earning under SGD $4,500 (for non-managers/professionals) and SGD $2,600 for manual workers. It outlines:
Grounds for lawful dismissal
Procedural requirements for termination
Employee rights to lodge complaints with the Ministry of Manpower (MOM)
For employees who fall outside the scope of the Employment Act—such as higher-income earners or senior executives—contractual terms and common law principles provide the main sources of protection.
Key Statutes:
Types of Unfair Dismissal
Dismissal Without Just Cause
Terminating an employee without a valid reason or warning may be deemed wrongful. Example: Firing someone for being late once, with no prior record or disciplinary action
Dismissal Based on Discrimination
Firing someone based on gender, age, race, religion, pregnancy, or family responsibilities is discriminatory and illegal. Example: Letting go of an employee after she discloses her pregnancy.
Constructive Dismissal
When an employer makes work conditions so unbearable that an employee resigns involuntarily. Example: Slashing a salary or role responsibilities without warning or valid reason.
Termination During Probation
Probationary employees are still protected. Dismissal without cause or fair warning could still be wrongful.
Improper Retrenchment
Employers must follow proper retrenchment procedures and inform MOM where applicable. Example: Declaring a role redundant but hiring a new person for the same position weeks later.
Whistleblower Retaliation
Dismissal following a report of illegal or unethical practices may be seen as retaliatory.
Non-renewal of Fixed-Term Contracts
Non-renewal is legal unless used to avoid statutory obligations (e.g. maternity leave benefits).
How to Identify a Wrongful Termination
Ask yourself:
Was a valid reason provided?
Was there due process (warnings, investigations)?
Were you treated differently from peers?
Was your contract honored?
Were you dismissed shortly after asserting your rights?
Retrenchment vs. Wrongful Dismissal
While retrenchment is legal under proper procedures, it becomes wrongful if used as a pretext for discrimination or retaliation.
Compensation and Damages for Wrongful Termination
You may be entitled to:
Salary in lieu of notice
Lost income or back pay
Emotional distress damages
Reinstatement in exceptional cases
Impact of Wrongful Termination on Work Pass Holders
Foreign employees may face added challenges, including sudden visa cancellations. However, they have the same right to lodge complaints with MOM or TADM.
What is Not Considered Wrongful Termination
Dismissal may be lawful if:
It follows due process
Misconduct is proven
The contract is honored
Redundancy is genuine and documented
Examples:
Dismissal for consistent lateness despite repeated warnings
Restructuring or downsizing with proper notice
Breach of confidentiality
What To Do If You Are Wrongfully Dismissed?
If you believe you have been dismissed unfairly, it’s important to act promptly and strategically. Here’s a step-by-step guide:
1. Stay Calm and Document Everything : Solid documentation strengthens your claim and protects your position.
Take note of the dismissal circumstances: date, time, persons involved, and reasons (if given).
Save all written communications related to your termination (e.g., emails, WhatsApp messages, dismissal letters).
If you had performance appraisals, letters of commendation, or previous warnings (or the absence of them), gather those too.
Maintain a timeline of key events leading up to the dismissal.
2. Request Clarification from Your Employer : Some wrongful dismissal claims fail because employees cannot demonstrate that the dismissal was baseless or improperly handled.
Politely request the official reason for your dismissal in writing.
Ask if there was any internal inquiry or investigation conducted.
If retrenchment is cited, ask for proof (e.g., retrenchment letter, redundancy plans).
3. Check Your Employment Contract and Policies : If your employer failed to follow contractual or policy requirements, it can strengthen your claim.
Review your employment contract regarding notice periods, grounds for termination, and disciplinary procedures.
Refer to the employee handbook (if any) to understand company policies about misconduct, retrenchment, or termination processes.
4. File a Complaint Quickly : Missing these deadlines could bar you from seeking remedies. Filing early also helps to secure evidence and witness recollection while still fresh.
You must file a complaint with the Ministry of Manpower (MOM) within one month of your termination date for wrongful dismissal cases.
If it’s a salary or benefits-related issue (e.g., unpaid salaries, notice pay), file a claim with the Tripartite Alliance for Dispute Management (TADM) within one year.
5. Engage a Lawyer or Seek Mediation Support : Professional advice ensures you understand your legal standing and maximizes your chance of a favorable outcome.
Consult an employment lawyer to assess whether you have a strong case.
A lawyer can guide you on whether to negotiate a settlement, pursue mediation, or file a tribunal claim.
Alternatively, attend mediation sessions organized by TADM for a lower-cost solution.
6. Consider Negotiating a Settlement : Settlements can resolve the matter faster and preserve your professional reputation.
In some cases, employers are willing to negotiate an exit package to avoid tribunal proceedings.
Settlement could involve salary payouts, compensation for emotional distress, or positive references.
7. Prepare for the Employment Claims Tribunals (ECT)
If mediation fails, you may escalate your case to the ECT, where a judge can:
Award monetary compensation
Order reinstatement of your job (rare)
Award back pay or compensation in lieu of notice
ECT proceedings are relatively affordable, but representation by lawyers is not allowed during hearings. However, you can seek legal advice before the hearing.
