In 2023, Singapore witnessed a notable rise in employment-related claims, with the Ministry of Manpower (MOM) and the Tripartite Alliance for Dispute Management (TADM) recording 9,397 cases. This is an increase from previous years. These claims encompassed issues such as wrongful dismissals, unpaid wages, and disputes over non-compete clauses, highlighting the prevalence of workplace conflicts.
For both employees and employers, a thorough understanding of their rights and obligations is crucial to navigate these challenges effectively. This guide outlines the most common employment disputes in Singapore, available legal remedies, and the pivotal role of legal support in resolving such matters.
An employment dispute arises from disagreements between an employer and an employee concerning contractual terms, workplace treatment, termination procedures, or post-employment obligations. Left unresolved, these disputes can adversely affect careers, reputations, and business operations.
Overview of Common Employment Disputes in Singapore
Type of Dispute | Examples | Legal Recourse |
Wrongful Dismissal | Termination without valid reason or due process | TADM, Employment Claims Tribunal (ECT) |
Unpaid Wages | Missing salary, bonuses, overtime pay | TADM, ECT |
Breach of Contract | Unfulfilled notice periods, altered job scopes | TADM, Mediation, Civil Court |
NDA/Non-Compete Clauses | Breach of confidentiality, joining competitors | Civil Litigation |
Harassment/Discrimination | Hostile work environment, unfair treatment | Internal Grievance Procedures, TAFEP |
Constructive Dismissal | Forced resignation due to employer’s conduct | TADM, Civil Litigation |
Under Section 14 of the Employment Act 1968 (Cap. 91), an employee may file a claim if they believe they have been dismissed without just cause or excuse. The provision requires that employers provide a valid reason for dismissal and afford the employee an opportunity to be heard before termination.
Claims must first be lodged with the Tripartite Alliance for Dispute Management (TADM). If unresolved, the matter may be referred to the Employment Claims Tribunal (ECT) for adjudication.
According to the Ministry of Manpower’s 2023 Employment Standards Report, the incidence of wrongful dismissal claims rose to 0.32 per 1,000 employees, up from 0.26 in 2022. Importantly, 70% of such cases were resolved amicably at TADM, underscoring the effectiveness of early dispute resolution mechanisms.
Claims related to unpaid compensation may involve:
– Basic salary
– Overtime pay
– Commissions and bonuses
– Leave encashment
Employees should act promptly, as wage claims must be filed within six to twelve months depending on employment status. In 2023, salary claims rose to 2.19 per 1,000 employees.
Disputes may arise from:
– Employers altering job scope without consent
– Employees resigning without notice
– Conflicts over restrictive covenants
Disputes may emerge when:
– An employee discloses confidential information
– A former employee joins a direct competitor
Courts assess these clauses based on scope, duration, geography, and protection of legitimate business interests.
Singapore lacks a standalone anti-discrimination law, but Tripartite Guidelines provide a framework for complaints through TAFEP. In 2023, 6.0% of employees reported experiencing workplace discrimination, down from 8.2% in 2022.
Occurs when an employee resigns due to hostile or unfair work conditions such as:
– Drastic pay cuts
– Unlawful demotions
– Persistent bullying
If proven, such resignations may be deemed wrongful dismissals.
Whether you’re facing a potential wrongful dismissal, navigating a complex employment dispute, or seeking to enforce your contractual rights, RBN Chambers LLC is here to help. Our employment law team has deep experience advising both employees and employers on workplace rights, dispute resolution, and legal strategy.
We offer clear, practical guidance tailored to your situation, so you can move forward with confidence.
We provide solutions to the table for all our clients regardless of the scale or complexity of the cases. Let us know how we can help.
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