As with any other contract, an employment contract can be breached, and either the employer or the employee can be the party in breach.

The law allows one party to bring a civil claim against another who fails to perform their contractual or common law duties. For many employment disputes, though, the first step is not a lawsuit but mediation at the Tripartite Alliance for Dispute Management (TADM).

In Singapore, employment contracts are governed by the Employment Act and the common law. The Employment Act sets minimum terms, and an employer who fails to comply with some of those provisions, such as paying salary on time, commits an offence under the Act. Of course, the employer also has remedies if the employee breaches the contract.

This article looks at what amounts to a breach of an employment contract and briefly touches on the remedies available to the other party.

What is a breach of contract?

An employment contract is a legally binding agreement between the employer and the employee. If either party breaks one of its terms, they are in breach of the contract. Some terms are implied into the contract, and failing to comply with those can also amount to a breach. An example is the duty of mutual trust and confidence between employer and employee implied by the common law.

You may have heard lawyers talk about a “material breach of contract”. A material breach is one that goes to the heart of the contract; it is a fundamental breach.

For example, employees are entitled to payment in return for performing their duties. Payment and performance of duties are fundamental to an employment contract. Without those elements, there is no “employment” to speak of. Failing to pay the employee, or performing the employee’s duties recklessly, can amount to a breach of a fundamental term of the employment contract.

In some cases, the law treats specific actions, or failures to act, as a breach of the employment contract.

Deemed breach of contract

Section 13 of the Employment Act deals with situations where the employer or the employee is deemed to have broken the employment contract.

  • If the employer fails to pay the employee’s salary in accordance with Part 3 of the Act (broadly, within seven days after the end of each salary period), the employer is deemed to have broken the employment contract. Failing to pay salary is also an offence. An employer convicted of it can face a fine of between S$3,000 and S$15,000, imprisonment of up to six months, or both, with higher penalties for repeat offenders.
  • Likewise, the employee is deemed to have broken the contract if they are absent from work for more than two consecutive working days without the employer’s prior approval and
    • without a reasonable excuse, or
    • without informing or attempting to inform the employer of the reason for the absence.

Breach of employment by the employee

Employment law in Singapore protects both employees and employers against breach of the employment contract.

Common examples of breach by employees include:

  • Absence from work without a valid reason or notice.
  • Breaching confidentiality obligations, for example sharing trade secrets with competitors or taking client lists to a new employer.
  • Disorderly or immoral conduct at the workplace, for example arriving at work under the influence of alcohol or drugs, or sharing inappropriate content on work email.
  • Gross negligence or reckless behaviour, for example ignoring safety rules when operating equipment.
  • Theft or misappropriation of company assets.

What can the employer do?

  • Depending on the situation, the employer may try to settle the matter informally, but there are legal remedies if the issue is serious or cannot be resolved informally.
  • In cases of serious misconduct, the employer can dismiss the employee, provided it first holds a proper inquiry and follows any procedures agreed in the contract or its own policies, such as warning letters and disciplinary procedures. The Employment Act sets out how an employee can be suspended during the inquiry and what penalties are available if misconduct is proven.
  • Depending on the circumstances, employment can be terminated with notice, with salary in lieu of notice, or (where misconduct is proven after an inquiry) without either.
  • Where appropriate, the employer can claim for financial loss resulting from the breach. For example, where an employee leaves without serving notice or paying salary in lieu, the employer can generally claim the salary in lieu of notice that the employee should have paid.
  • If the employee breaches a confidentiality obligation or a restrictive covenant, the employer can apply to court for an injunction, for example to stop the employee from sharing trade secrets with a competitor. Whether a restrictive covenant can be enforced depends on whether it is reasonable; see our note on whether non-compete clauses are enforceable.

Common breach of contract by employers

Non-payment of salary and wrongful dismissal are the most common breaches by employers. Discrimination and harassment raise related issues, although, as explained below, they are mostly dealt with outside the contract itself.

Non-payment of salary

Failing to pay salary, or making deductions the law does not allow, can amount to a breach of contract. Although a single late payment might not be a material breach, continued or repeated non-payment or late payment can be considered a fundamental breach.

What can the employee do?

The employee has a few options:

They can leave the employment without notice if the employer fails to pay their salary within seven days of it being due. MOM suggests first checking with the employer why the salary has not been paid. Leaving is not always what the employee wants, though.

Other remedies include:

  • Filing a salary claim with TADM, which covers unpaid salary as well as other statutory and contractual entitlements such as overtime pay and bonuses. TADM will first try to resolve the dispute through mediation.
  • If mediation does not resolve the dispute, TADM issues a Claim Referral Certificate and the claim can be heard by the Employment Claims Tribunals (ECT).
  • Claims through TADM and the ECT are capped at S$20,000, or S$30,000 if the claim has gone through the Tripartite Mediation Framework or mediation assisted by a union recognised under the Industrial Relations Act. Any amount above the cap has to be given up.
  • A salary claim must be filed within one year of the dispute arising if the employee is still employed, or within six months of the last day of employment if they have left.

Wrongful dismissal

An employer cannot dismiss an employee without just cause or excuse. Forcing an employee to resign against their will can also amount to wrongful dismissal. If the real reason for the dismissal is wrongful, it does not matter whether it was with or without notice.

An employer does not have to give a reason when it ends employment with proper notice or salary in lieu. Where it dismisses an employee without notice for misconduct, however, it must first hold a proper inquiry, and it must be able to show that the dismissal was justified.

If the employer cannot substantiate a dismissal without notice, or the real reason for a dismissal with notice was a wrongful one, the dismissal may be wrongful.

Examples of wrongful dismissal include:

  • dismissing an employee to punish them for exercising an employment right, such as raising a salary claim or a workplace safety complaint.
  • forcing an employee to resign, for instance, by refusing to give maternity leave.

What can the employee do?

  • The employee can file a wrongful dismissal claim with TADM within one month of their last day of employment. TADM will try to resolve the dispute through mediation. If mediation succeeds, the terms are recorded in a settlement agreement, which either party can register with the District Court within four weeks of signing. A registered settlement agreement is enforceable as a court order.
  • If mediation is unsuccessful, the claim is referred to the ECT. This is a cost-effective option, but if the claim exceeds the S$20,000 cap (or S$30,000 for union-assisted claims), the employee will have to give up the excess.
  • A claim for breach of contract (for example, for unpaid notice pay or contractual benefits) can also be brought in the civil courts. Depending on the amount, that will be the Magistrate’s Court (up to S$60,000), the District Court (up to S$250,000) or the High Court. This is usually slower and more expensive, and is often a last resort.

Discrimination and harassment

Singapore does not yet have a general statutory right to sue an employer for workplace discrimination. For now, fair employment is governed by the Tripartite Guidelines on Fair Employment Practices. A dismissal made because of a characteristic such as age, race, gender, religion, marital status and family responsibilities, or disability can, however, already be challenged as a wrongful dismissal.

Harassment at work can also be a breach of the employer’s duties, and can give rise to remedies under the Protection from Harassment Act.

What can the employee do?

  • Employees who experience discrimination or harassment can contact the Tripartite Alliance for Fair & Progressive Employment Practices (TAFEP), which can follow up with the employer. MOM can take action against employers who breach the guidelines, such as restricting their ability to hire foreign employees.
  • Harassment may be an offence under the Protection from Harassment Act. The employee can also apply to court for a Protection Order against the person harassing them, whether that is a colleague, a manager or the employer, and in some cases claim damages.
  • Once the Workplace Fairness Act comes into force (see below), employees will be able to bring discrimination claims through TADM and the ECT.

Workplace safety

The employer has a duty to provide a safe working environment. It does not need to be stated in the employment contract; the law places this duty on employers.

Failure to provide a safe workplace is a breach of that duty, and the employer can face a civil claim.

What can the employee do?

An employee can claim under the Work Injury Compensation Act for a work-related injury without having to bring a civil lawsuit or prove that the employer was at fault. However, an employee must choose between the two routes: an employee who claims under the Work Injury Compensation Act cannot also sue the employer in a civil claim for the same injury.

What changed in 2025 and 2026

  • Workplace Fairness Act 2025. Parliament passed the Workplace Fairness Act on 8 January 2025 and the Workplace Fairness (Dispute Resolution) Act on 4 November 2025. They are not yet in force: the government’s target is for them to take effect by end-2027. Once in force, employers will be prohibited from making employment decisions based on age, nationality, sex, marital status, pregnancy, caregiving responsibilities, race, religion, language, disability and mental health conditions. Employers with fewer than 25 employees will be exempt at first. Discrimination claims will start with mediation and can be heard by the ECT up to S$250,000, with larger claims going to the High Court.
  • Retirement and re-employment ages. From 1 July 2026, the minimum retirement age rose to 64 and the re-employment age to 69. Dismissing an employee because of their age before the minimum retirement age, or failing to offer re-employment to an eligible employee, breaches the employer’s statutory duties.

Common questions

Can I sue my employer for breach of contract in Singapore? Yes. Many claims, such as unpaid salary and wrongful dismissal up to S$20,000 (or S$30,000 with union assistance), go through TADM mediation and then the ECT. Larger contractual claims can be brought in the civil courts.

What happens if my employer does not pay my salary? Salary must be paid within seven days after the end of the salary period. If it is not, you can file a claim with TADM, and you may leave without notice. Late payment is also an offence the employer can be prosecuted for.

Can my employer sue me for leaving without notice? Generally, an employee who leaves without serving notice must pay salary in lieu of notice, and the employer can claim it. A larger claim is possible if, for example, you also breach a confidentiality obligation.

How long do I have to bring an employment claim? One month from your last day of employment for wrongful dismissal. For salary claims, one year from when the dispute arose if you are still employed, or six months from your last day if you have left.

What to do when facing a claim of breach of employment contract

When facing a claim of breach of your employment contract, it is important to get advice from an employment lawyer as early as possible. Whether you are accused of breaching the Employment Act or the contract, the stakes are high, and you need to understand the law and your rights.

We can guide you through the law and advise you on the best way forward. Often, the dispute can be resolved by mediation, saving time and money. If mediation does not reach an acceptable outcome, we can help you build a sound litigation strategy for your situation. Our guide to employee termination explains the notice, misconduct and retrenchment rules in more detail.

Better still is getting advice when the contract is drafted, from an employment lawyer who understands Singapore’s employment law landscape. A carefully drafted employment contract, reviewed through our employment contract review service, can avoid many disputes and make clear what conduct will amount to a fundamental breach.