Termination of Employment

1. Grounds for Termination:

Performance Issues: Poor performance or inability to meet job requirements.

Redundancy: Elimination of the job role due to business restructuring or downsizing.

Misconduct: Behavior that breaches company policy or constitutes serious misconduct.

Mutual Agreement: Both employer and employee agree to end the employment relationship.

End of Contract: Completion of a fixed-term contract without renewal.

2. Notice Period:

Contractual Requirement: The length of the notice period is usually outlined in the employment contract and should comply with minimum statutory requirements.

Statutory Notice Periods: These vary based on the duration of service, ranging from one day to four weeks.

Payment in Lieu of Notice: Either party can choose to pay the other party a sum equal to the salary that would have been earned during the required notice period.

3. Termination without Notice:

Allowed under specific circumstances, such as gross misconduct. However, this should be handled carefully to avoid wrongful dismissal claims.

4. Severance Pay:

Not a statutory requirement in Singapore except under certain collective agreements or for employees who fall under the Employment Act and have been employed for at least two years and are retrenched.

5. Handling Redundancies:

Employers are encouraged to follow the principles of fairness, transparency, and to consider redeployment within the company or group.

6. Termination of Foreign Employees:

Employers must cancel the work pass of foreign employees and handle repatriation arrangements.

7. Final Salary Payment:

Final salary, including payment for unused leave and any other owed amounts, must be paid on the last day of employment or within 7 days after the day of termination.