Singapore is often described as an “at-will” employment jurisdiction. That is a useful shorthand but not an accurate one. Either an employer or an employee can usually end the employment by giving the notice set out in the contract of employment, or by paying salary in lieu of notice, and neither side has to give a reason. However, a dismissal that complies with the contract can still be wrongful if the real reason behind it is discriminatory, is meant to deprive the employee of a benefit, or punishes the employee for exercising an employment right. The Employment Act and other legislation also govern the rights and duties of both parties, even where the contract says something different or says nothing at all.
An employment contract should comply with the relevant legislation and clearly set out what happens on termination in specified circumstances. The contract can include additional terms and conditions, provided these do not give the employee less than the law requires.
Terminating employment incorrectly can leave both the employer and the employee open to legal action.
What does termination of employment mean?
Termination of employment means the end of an individual’s period of work with a particular employer. It can be started by the employee (voluntary, usually by resignation) or by the employer (involuntary, such as dismissal or retrenchment).
The Employment Act (EA) covers many employment matters, such as termination of service and fixed-term contracts, where employment automatically ends at the end of the term. It also has provisions on notice periods, how notice should be given, and what can happen during the notice period. The Act covers most employees in Singapore, including managers and executives, although some parts (such as the rules on hours of work and overtime) apply only to certain lower-paid employees.
Termination with notice
Either party to the employment contract can give notice when they wish to end the employment relationship. Giving notice is the usual process when an employee wants to resign, or an employer wants to terminate the contract. Notice must be given in writing (a letter or email is enough), and the notice period must be the same length for both the employer and the employee.
Typically, an employee will work out their notice period, which commonly ranges from one to three months, and sometimes six months for senior roles. Sometimes the employer prefers that the employee leaves straight away and pays salary in lieu of notice instead. Both parties can also agree to waive the notice period, and that agreement is best recorded in writing. The notice period includes the day notice is given, as well as rest days, public holidays and other non-working days.
It is good practice for the employer to confirm the termination and the last day of employment in a letter, and for an employee who resigns to ask the employer to acknowledge the resignation. Where notice is given correctly, neither the employer nor the employee is required by law to give a reason for ending the contract. As explained below, this does not protect a dismissal that is made for a wrongful reason.
Some employment contracts don’t include a specific notice period. In these cases, the Employment Act sets the minimum notice according to the length of service:
| Length of service | Notice period |
|---|---|
| Less than 26 weeks | 1 day |
| 26 weeks to less than 2 years | 1 week |
| 2 years to less than 5 years | 2 weeks |
| 5 years or more | 4 weeks |
Sometimes an employer or employee can end the contract immediately without notice, for example where the other party has wilfully breached a condition of the contract. Termination without notice is covered in Section 11 of the Employment Act.
Taking leave during a notice period
If the employee is covered by the Employment Act, any sick leave (paid or unpaid) taken during the notice period counts as part of the notice period. The employer cannot extend the notice period or claim short notice because the employee was on sick leave.
With the employer’s approval, an employee can also use annual leave during the notice period, or use it to bring forward the last day of work. National Service reservist training is treated differently: it does not count towards the notice period, so the notice period is extended by the length of the training.
An employee remains employed by their current employer until the last day of the notice period, so it is not usual to start new employment before then.
Termination without notice
Usually, if an employment contract is terminated without notice, the party ending it must pay salary in lieu of notice. An employee may wish to resign immediately, or the employer might want to end the contract without the employee working out their notice period.
Salary in lieu of notice is the amount the employee would have earned during the required notice period. Whoever ends the contract without notice is responsible for paying it, and where one party has breached the terms of employment, it is that party who must pay.
Certain events can justify immediate termination or resignation. For example, an employee can leave without notice if the employer fails to pay their salary within seven days of it being due. Compensation may be payable in addition to any salary for the notice period.
On the employee’s side, the Employment Act treats an employee as having broken the contract if they are absent from work for more than two consecutive working days without the employer’s approval and without a reasonable excuse, or without informing or attempting to inform the employer of the reason. In that situation the employer can terminate the contract without notice.
When can an employer dismiss without notice for misconduct?
Some breaches of the employment contract justify immediate dismissal, so the employer is not required to give notice. The Ministry of Manpower (MOM) describes misconduct as a failure to fulfil the conditions of employment, giving examples such as theft, dishonesty, disorderly or immoral conduct, and insubordination. Serious misconduct can also extend to false information provided at the recruitment stage, which may not come to light for months or even years.
However, the employer must hold an inquiry before dismissing an employee for misconduct, rather than simply dismissing them on the spot. During the inquiry, the employee may be suspended under the Employment Act.
There is no fixed procedure for an inquiry, so employers have some flexibility in how they conduct it. However, if the process is not fair, they could face a claim for wrongful dismissal.
The employee should be told how the inquiry will work, including who is running it and the likely timescale. The inquiry is best heard by someone who is impartial, to avoid any suggestion of bias. Employees should be told the exact nature of the allegations against them and be given the opportunity to present their side of the story.
During a suspension, the employee must be paid at least half their salary. An employee cannot be suspended for more than one week without the approval of the Commissioner for Labour. If the inquiry finds no misconduct, the employer must restore the full amount of salary withheld during the suspension.
If the inquiry will take longer than one week, the employer must apply to the Commissioner for Labour at least three working days before the one-week suspension ends. The application should explain the alleged misconduct, the reasons the inquiry needs more time, the salary payable during the suspension and when the inquiry is expected to end.
Failure to follow a fair process can allow an employee to bring a claim for wrongful dismissal, even where the grounds for dismissal were in fact justified.
If the inquiry finds that the misconduct is proven, the employer can dismiss the employee without notice and without paying salary in lieu of notice. Alternatively, the employer may choose a lesser penalty, such as downgrading the employee or suspending them without pay for up to one week.
Wrongful dismissal
Employers can validly dismiss employees for breach of their contract of service. However, employment law protects employees from dismissals made without just or sufficient cause, and this can apply whether the dismissal was with notice or without it.
Under the Tripartite Guidelines on Wrongful Dismissal, examples of wrongful dismissal include:
- Dismissal because of the employee’s age, race, gender, religion, marital status and family responsibilities, or disability
- Dismissal to deprive the employee of a benefit or entitlement, such as maternity benefits
- Dismissal to punish the employee for exercising an employment right, such as asking TADM to mediate a salary claim
Where the dismissal was without notice, the employer has to show that it was not wrongful. Where the employee was given notice or salary in lieu, it is the employee who has to show that the dismissal was wrongful, and managers and executives can only bring this kind of claim if they had served the employer for at least six months.
Our note on breach of employment contract covers the related situation where the dispute is about the terms of the contract itself, such as unpaid salary or benefits.
What can an employee do in a case of wrongful dismissal?
Employees who believe they have been wrongfully dismissed can bring a claim against their employer. The statutory claim starts with mediation at the Tripartite Alliance for Dispute Management (TADM). A separate claim for breach of the contract itself can also be brought in the civil courts.
A wrongful dismissal claim must be filed with TADM within one month of the last day of employment. (A pregnant employee who is dismissed and not paid her maternity benefits has two months from the date of her confinement.) Claims at TADM and the Employment Claims Tribunals (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 must be given up to settle or proceed at the ECT.
If mediation succeeds, the outcome is recorded in a settlement agreement. Either party can register it with the District Court within four weeks of it being signed, which makes it enforceable as a court order. Claims that TADM does not resolve are given a Claim Referral Certificate and referred to the ECT. If the employee believes the dismissal was because of their age, or they were not offered re-employment, they can instead appeal to MOM within one month of their last day of employment.
If the ECT finds that the dismissal was wrongful, it can order the employer to reinstate the employee and pay for income lost because of the dismissal, or to pay a sum of money as compensation.
Retrenchment
Retrenchment is a termination because the employer has more staff than it needs, rather than because of anything the employee has done. Since 1 November 2021, employers with at least 10 employees must notify MOM of every retrenchment, however few employees are affected, within five working days after the affected employees are told. (Before that date, notification was only needed where five or more employees were retrenched within six months.) Smaller employers are strongly encouraged to notify as well.
Employers should also follow the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment. This includes giving notice in line with each employee’s contract (and ideally longer), consulting the union first where the company is unionised, and choosing who to retrench on fair and objective criteria. The Employment Act does not set a retrenchment benefit, but under the Advisory, employees with at least two years’ service are generally expected to receive one. The prevailing norm is two weeks’ to one month’s salary for each year of service, depending on the company’s finances and industry practice.
What changed in 2025 and 2026
- Workplace Fairness Act 2025. Parliament passed the Workplace Fairness Act on 8 January 2025 and the companion Workplace Fairness (Dispute Resolution) Act on 4 November 2025. They are not yet in force: the government’s stated target is for the legislation to take effect by end-2027. Once in force, it will prohibit employment decisions, including dismissal, 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 go to TADM mediation first, and the ECT will hear them up to S$250,000. Until then, the Tripartite Guidelines on Fair Employment Practices continue to apply.
- Retirement and re-employment ages. From 1 July 2026, the minimum retirement age rose from 63 to 64 and the re-employment age from 68 to 69. An employer cannot dismiss an employee because of age before the minimum retirement age, and must offer re-employment to eligible employees up to age 69.
- Employment Act review. In March 2026, MOM said it would consider making advance retrenchment notification mandatory as part of a wider review of the Employment Act. This is a proposal only. The current rule (notification within five working days after employees are told) still applies.
Common questions
Can my employer terminate me without giving a reason in Singapore? Generally, yes, if they give the notice required by your contract (or pay salary in lieu). But the dismissal can still be wrongful if the real reason was discriminatory, was to deprive you of a benefit, or was to punish you for exercising an employment right.
How much notice do I have to give if my contract says nothing? The Employment Act sets the minimum, from one day (less than 26 weeks’ service) up to four weeks (five years or more). See the table above.
How long do I have to file a wrongful dismissal claim? One month from your last day of employment, filed with TADM. Salary claims have a longer window: within one year of the dispute arising while you are still employed, or within six months after your last day.
Do I get paid if I am suspended during an investigation? Yes. You must receive at least half your salary, and if the inquiry finds no misconduct, the employer must pay back what was withheld.
Is my employer required to pay retrenchment benefits? There is no statutory amount, but the Tripartite Advisory expects employees with at least two years’ service to receive one, and many contracts and collective agreements set the amount.
Final thoughts on employee termination in Singapore
Ending employment, particularly on the employer’s side, requires care to avoid breaching the contract or the legislation.
A good starting point is a well-drafted contract that clearly sets out the rights and obligations of both parties, and our employment contract review service is designed for exactly that. Robust processes for investigating misconduct and a fair disciplinary procedure help protect employers from wrongful dismissal claims.
We advise both employers and employees on contract drafting, terminations, retrenchment and employment disputes and claims.