Losing a job is stressful enough. Discovering that the manner of your dismissal may have been unlawful adds a layer of uncertainty that many employees and, in some cases, employers find difficult to navigate. In Singapore, two distinct legal concepts govern the circumstances in which a dismissal may be challenged: wrongful dismissal and unfair dismissal. They are frequently conflated, but they arise from different legal frameworks, carry different remedies, and are resolved through different processes.
Understanding the distinction matters regardless of whether you are an employee who believes you have been dismissed improperly, or an employer seeking to manage your workforce within the bounds of the law.
The Employment Act
The starting point for any dismissal analysis in Singapore is the Employment Act (EA), the primary legislation governing employment relationships in Singapore. The EA covers most employees working under a contract of service in Singapore, with some exceptions notably certain categories of managers and executives and foreign domestic workers who are governed by separate frameworks.
The EA sets out the minimum terms and conditions of employment, including provisions governing dismissal. It has been significantly updated in recent years, most notably in 2019, when coverage was extended to all employees regardless of salary level (previously, certain provisions applied only to those earning below a salary threshold), and the framework for wrongful dismissal claims was substantially strengthened.
For employers, compliance with the EA is mandatory. For employees, understanding what the Act provides is essential to assessing whether a dismissal can be challenged and through which avenue.
Wrongful Dismissal: A Breach of Contract
A dismissal is wrongful when it breaches the terms of the employment contract, most commonly by failing to give the notice required under the contract or the EA, or by summarily terminating employment without sufficient cause.
Under the EA, an employer may terminate an employee’s contract by giving the notice specified in the contract or, where no notice period is stipulated, the statutory minimum notice period prescribed by the Act. The statutory notice periods range from one day (for employees with less than 26 weeks of service) to four weeks (for employees with five or more years of service), though contractual notice periods are often longer.
An employer may also dismiss an employee without notice but only where the employee has committed misconduct inconsistent with the fulfilment of the express or implied conditions of the employment contract. This is sometimes called dismissal for cause. Where an employer purports to dismiss without notice but cannot establish sufficient cause, the dismissal may be wrongful.
Conversely, an employee who resigns without notice or who is effectively forced out by the employer’s conduct in what amounts to a constructive dismissal may also have a wrongful dismissal claim. Constructive dismissal arises where the employer’s conduct is so serious a breach of the employment contract that the employee is entitled to treat the contract as having been repudiated and to accept that repudiation by resigning. Common examples include unilateral reductions in salary, significant changes to role or responsibilities without consent, or sustained workplace harassment that the employer fails to address.
The remedy for wrongful dismissal is primarily compensatory: the employee is entitled to recover what they would have earned during the notice period they were denied, together with any other contractual entitlements they were deprived of. In some cases, reinstatement may be available, though it is not always the preferred or practical outcome.
Unfair Dismissal: A Statutory Protection
Unfair dismissal is a distinct and more recent concept in Singapore’s employment law landscape. Rather than asking whether the dismissal breached the employment contract, unfair dismissal asks whether the reason for the dismissal was legitimate and whether the process followed was fair.
Under the EA, a dismissal is considered wrongful, and the EA uses the term “wrongful dismissal” to encompass what many employment lawyers would recognise as unfair dismissal, where it is done without just cause or excuse. This covers situations such as:
Dismissal in retaliation for an employee exercising a statutory right: for example, filing a workplace safety complaint, taking maternity or childcare leave, or making a genuine grievance report
Dismissal on grounds of discrimination: based on age, gender, race, religion, nationality, marital status, pregnancy, or disability
Dismissal that is pretextual: where the stated reason (such as redundancy or poor performance) masks the real reason, which is illegitimate
This is the area where the line between wrongful and unfair dismissal, in the conventional sense, becomes most relevant. An employer may give full contractual notice and still face a successful claim if the underlying reason for the dismissal was discriminatory or retaliatory. Compliance with the procedural mechanics of dismissal such as giving notice or making payment in lieu does not immunise an employer against liability if the reason itself is impermissible.
TAFEP Guidelines: Fair Employment Practices
Sitting alongside the legal framework is the guidance issued by the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), the body established by the government, employers, and unions to promote fair, responsible, and progressive employment practices in Singapore.
TAFEP’s guidelines are not legally binding in the same way as the EA, but they carry significant practical weight. The Tripartite Guidelines on Fair Employment Practices set out the standards expected of employers across the full employment lifecycle from recruitment through to dismissal. On dismissal specifically, the guidelines make clear that employees should not be dismissed on the basis of personal attributes unrelated to job performance or conduct, and that employers should conduct performance management and disciplinary processes fairly and transparently before resorting to dismissal.
Breaches of TAFEP guidelines can result in referrals to MOM, reputational consequences, and in serious cases, the withdrawal of work pass privileges which are significant sanctions for employers who rely on foreign talent.
Employers should treat TAFEP’s guidance not merely as a compliance exercise but as a practical framework for managing their workforce in a way that reduces the risk of disputes arising in the first place.
The Key Distinctions
Wrongful dismissal focuses on the mechanics of the dismissal E.g. Was the correct notice given? Was summary dismissal justified by the employee’s conduct? It is rooted in contract law and asks whether the employer complied with the terms of the employment agreement.
Unfair dismissal focuses on the reason for the dismissal E.g. Was it legitimate? Was it discriminatory, retaliatory, or pretextual? It is rooted in statute and asks whether the employer acted within the bounds of what the law and public policy permit.
A dismissal can be both wrongful and unfair. For instance, where an employee is summarily dismissed without cause for a discriminatory reason. It can also be one without the other. An employer might give full notice but still dismiss for an impermissible reason, or might dismiss fairly on legitimate grounds but fail to give the correct notice period. The analysis depends on the specific facts of each case.
Making a Claim
For employees who believe they have been wrongfully or unfairly dismissed, the Tripartite Alliance for Dispute Management (TADM) is the first port of call. TADM provides a structured mediation process for employment disputes, and it is a mandatory first step before a claim can be referred to the Employment Claims Tribunal (ECT).
The process works as follows. An employee who wishes to bring a dismissal claim must file a claim with TADM within one month of the last day of employment. This is a short window, and missing it can be fatal to the claim, so acting promptly is essential. TADM will then facilitate mediation between the parties, with the aim of reaching a negotiated settlement. The majority of claims are resolved at this stage.
Where mediation is unsuccessful, TADM will issue a certificate allowing the matter to be referred to the Employment Claims Tribunal (ECT), which has jurisdiction to hear wrongful dismissal claims and award remedies including compensation and, in appropriate cases, reinstatement. The ECT process is designed to be accessible and relatively expeditious, without the formality and cost of full court proceedings.
For employees in managerial or executive roles who fall outside the ECT’s jurisdiction, wrongful dismissal claims may need to be pursued in the civil courts, where the contractual nature of the claim is litigated directly. Legal advice is particularly important in these cases given the greater complexity and cost of court proceedings.
Conclusion
Wrongful dismissal and unfair dismissal are related but distinct concepts under Singapore employment law. Wrongful dismissal is about the mechanics such as notice, payment, contractual compliance. Unfair dismissal is about the reason, whether the basis for the decision was legitimate and non-discriminatory. Whether you are an employee who has been dismissed and is unsure of your rights, or an employer facing a potential claim, understanding the distinction between these two concepts is the essential starting point. Given the one month window for filing a TADM claim, seeking legal advice promptly is not only prudent, but also necessary.
