Employment |

Employment Disputes: Common Types of Employment Issues in Singapore and How to Handle Them


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.

What Constitutes an Employment Dispute?

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 DisputeExamplesLegal Recourse
Wrongful DismissalTermination without valid reason or due processTADM, Employment Claims Tribunal (ECT)
Unpaid WagesMissing salary, bonuses, overtime payTADM, ECT
Breach of ContractUnfulfilled notice periods, altered job scopesTADM, Mediation, Civil Court
NDA/Non-Compete ClausesBreach of confidentiality, joining competitorsCivil Litigation
Harassment/DiscriminationHostile work environment, unfair treatmentInternal Grievance Procedures, TAFEP
Constructive DismissalForced resignation due to employer’s conductTADM, Civil Litigation

Wrongful Dismissal

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.

Unpaid Salaries or Wages

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.

Breach of Employment Contract

Disputes may arise from:
– Employers altering job scope without consent
– Employees resigning without notice
– Conflicts over restrictive covenants

NDAs and Non-Compete Clauses

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.

Harassment and Discrimination

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.

Constructive Dismissal

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.

How RBN Chambers LLC Can Assist

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.

Delivering Solutions not just Answers to your legal disputes

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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Disclaimer:
Any information of a legal nature in this blog is given in good faith and has been derived from resources believed to be reliable and accurate. The author of the information contained herein this blog does not give any warranty or accept any responsibility arising in any way, including by reason of negligence for any errors or omissions herein. Readers should seek independent legal advice.