Business

A Guide to Termination of Work Contract in Singapore

Termination of work contract in Singapore can be because of voluntary agreement or a without notice. There can be various reasons for it, and the employer has to make sure that everything has been done according to the guidelines of the MOM.

Here are some reasons the Termination of Staff Employment in Singapore can happen.

Unsatisfactory Probation Period

The probation period in Singapore can be between three to six months. Employees have to impress during this period with their expertise to get a permanent work contract.

Employers can also terminate the contract before the probation period ends. This can be done by notice depending on the work contract, or by paying salary in lieu of notice.

Breach of Employment Contract

Both employer or employee can breach the employment contract.

In the case of employees, breaching of employment contract refers mostly to them not showing to work for more than two consecutive days without notifying the employer.

On the other hand, employers are said to breach the work contract if they don’t pay salary within time or make the employee do more or other work than that has been specified in the contract.

Employers or employees do not have to send a notice to end the work contract during the above cases.

Employee Dismissal

Employee dismissal can be due to misconduct such as abusive behaviour, unauthorized possession of the company’s properties, negligence leading to safety and security issues, etc.

On the other hand, companies may also dismiss employees for reasons other than misconducts. This can include poor job performance, prolonged sickness, etc. In such cases, termination notice and salary in lieu is necessary.

Employee Transfer

Employee transfer can also happen from one company to another. This can mostly be in cases of mergers and acquisitions, setting up of subsidiary company or branches, or sale of company assets.

Retrenchment

Retrenchment means ending the work contract because of redundancy, or the company’s inability to pay the salary for valid reasons. As of now, retrenchment is being more common because of the coronavirus pandemic. Furthermore, the government has bought in special rules for the COVID-19 Retrenchment Benefit

Resignation

An employee can offer a resignation letter if they no longer want to work in a company.

Natural Termination

Natural termination happens in case the contract period ends or because of demise.

 

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