Wrongful Dismissal in Singapore: The Tripartite Guidelines and the Claims Process

The phrase "wrongful dismissal" in Singapore is a defined concept. It is narrower than the common-law tort of wrongful dismissal in some other jurisdictions and quite different from the British "unfair dismissal" regime. Its meaning is shaped by the Tripartite Guidelines on Wrongful Dismissal (TGWD), first issued by MOM, NTUC, and SNEF in 2019 and updated periodically.

Under the TGWD, a dismissal is wrongful where it is made:

• On grounds of discrimination prohibited under the Tripartite Guidelines on Fair Employment Practices (TGFEP) or the Workplace Fairness Act 2025 — including age, nationality, sex, marital status, pregnancy status, caregiving responsibilities, race, religion, language, disability, and mental health condition;
• To deprive the employee of statutory benefits or entitlements, such as dismissing an employee just before they would have qualified for retrenchment benefits, annual leave, or maternity leave;
• To punish an employee for exercising an employment right, such as lodging a complaint with MOM, raising a workplace harassment report, or invoking a grievance procedure; or
• Summarily, without just cause — that is, where notice has not been given and the dismissal is summary in nature but is not supported by a sufficient finding of misconduct following a fair inquiry.

What is not wrongful dismissal

Performance-based dismissals are not, in themselves, wrongful, provided the process is fair, the substantive reasons are documented, and notice (or pay in lieu) is given. Singapore's framework does not impose a general "unfair dismissal" regime in the British sense; the at-will principle subject to contractual notice remains the default. Genuine redundancy executed in line with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment is similarly not wrongful, though discriminatory selection within a retrenchment exercise may be.

The starting point is that an employer may terminate employment with contractual notice for any reason or no reason at all. Wrongful dismissal claims arise where the reason itself is prohibited, where statutory benefits are being avoided, where the employee is being punished, or where summary dismissal is not properly substantiated.

Section 14 of the Employment Act 1968 permits an employer to dismiss an employee summarily for misconduct inconsistent with the employee's duties, but only "on due inquiry". This procedural requirement is the dividing line between a defensible summary dismissal and a wrongful one.

What due inquiry looks like

• Notice of allegations. The employee must be informed of the specific allegations in sufficient detail to respond.
• Opportunity to respond. The employee must be given a reasonable opportunity to respond, whether in writing, in a meeting, or both.
• Impartial decision-maker. The person making the dismissal decision should not be the immediate subject of the alleged conduct.
• Documented findings. The decision should be documented with reference to the evidence and the reasoning.

Proportionality

Summary dismissal is reserved for misconduct serious enough to justify ending employment without notice. Lesser misconduct attracts a warning, demotion, or termination with notice — not summary dismissal. The mismatch between conduct and sanction is a common ground for wrongful dismissal claims.

Constructive dismissal

The TGWD also addresses constructive dismissal. Where the employer's conduct amounts to a fundamental breach of contract — a unilateral salary cut, demotion, relocation in breach of contract, or sustained workplace harassment without remedy — the employee may resign and treat the resignation as a dismissal by the employer, with corresponding remedies. The threshold is high, and the employee must act promptly: continuing to work without protest may amount to acceptance of the changed terms.

The procedural framework for employment claims is set out in the Employment Claims Act 2016. The Act established the Employment Claims Tribunals (ECT) as a specialist tribunal within the State Courts to hear salary-related claims and wrongful dismissal claims with a streamlined, low-cost procedure.

Monetary caps

The ECT has a monetary cap of S$20,000 per claim. The cap rises to S$30,000 where the matter has been through mediation at the Tripartite Alliance for Dispute Management (TADM). Claims exceeding the cap must either be reduced in scope (which the claimant may do, but irrevocably waiving the excess) or commenced in the State Courts (up to S$250,000) or the General Division of the High Court.

Who can claim

The ECT hears claims by employees against employers, and by employers against employees, in respect of:

• Salary-related disputes — unpaid salary, overtime pay, leave encashment, retrenchment benefits;
• Wrongful dismissal claims as defined in the TGWD;
• Claims under the Workplace Fairness Act 2025 within the tribunal's jurisdiction;
• Breach of employment contract within the cap.

Legal representation

Legal representation is permitted but not required. Many parties appear in person. Tribunal Magistrates issue written orders enforceable as judgments of the State Courts.

Time limits

Time limits at the ECT are shorter than under the general Limitation Act 1959 six-year window. Most ECT claims must be brought within one year of the cause of action, with specific rules for salary-related claims and wrongful dismissal claims. The shorter windows reflect the tribunal's focus on prompt resolution.

Before lodging a claim at the ECT, the employee or employer must first attempt mediation at the Tripartite Alliance for Dispute Management (TADM). Mediation is mandatory for most salary-related disputes and for wrongful dismissal claims.

How TADM mediation works

The employee files a claim with TADM, either online or in person. TADM contacts the employer and convenes a mediation. The mediator is a trained TADM officer (not a judge). Mediation is conducted on a without-prejudice basis. Many cases are resolved here — settlement structures range from full payment of the disputed amount to staged payments, partial concessions, or non-monetary outcomes such as a corrected reference.

The claim referral note

Where mediation does not resolve the dispute, TADM issues a claim referral note. The note is the procedural gateway to filing a claim at the ECT — without it, the tribunal will not accept the claim. The note also signals to the tribunal that mediation has been attempted, which is relevant to the higher S$30,000 cap.

Costs

TADM mediation costs a nominal filing fee. Compared to litigation, it is a low-cost forum. Many employees attend without legal representation; others retain a solicitor for advice and preparation while attending the mediation themselves.

Even where a matter is likely to proceed to the tribunal, the TADM mediation step often produces a partial resolution that narrows the issues. Approaching mediation with a clear sense of the desired outcome — and the realistic range of settlement — typically yields a better result than treating it as a procedural box to tick.

The ECT can order:

• Compensation. Monetary award up to the applicable cap (S$20,000, or S$30,000 after TADM mediation).
• Reinstatement. An order requiring the employer to reinstate the employee, subject to feasibility and the employee's wish to return. Reinstatement is less commonly ordered than monetary compensation.
• Other monetary orders. Including payment of salary in lieu of notice, retrenchment benefits, accrued leave encashment, and other contractual entitlements.

Quantum considerations

Compensation in wrongful dismissal cases at the ECT is typically calculated by reference to the notice period the employee should have been given, lost salary, and (where applicable) loss of benefits. The compensation is not "general damages" in the broad sense familiar from English unfair dismissal awards; it is anchored to the contractual notice and to specific quantifiable losses.

Higher-value claims

Where the claim materially exceeds the ECT cap — for example, executive separation with bonus and equity issues, or sustained discriminatory conduct over a multi-year period — the State Courts (up to S$250,000) or the General Division of the High Court are the appropriate venues. Proceedings there follow the Rules of Court 2021 and are commenced after TADM mediation has been attempted where applicable.

Costs awards

The ECT typically does not award substantial costs against either party, reflecting its accessible design. The State Courts and the High Court can award costs in the usual way, which is a factor in forum-selection for higher-value claims.

The Workplace Fairness Act 2025 has added a statutory layer to the wrongful dismissal framework. Where a dismissal is alleged to be on a protected ground, the claim can be pursued both under the TGWD wrongful-dismissal route and under the WFA 2025 enforcement track.

Protected characteristics

The WFA 2025 protects against discrimination on grounds of age, nationality, sex, marital status, pregnancy status, caregiving responsibilities, race, religion, language, disability, and mental health condition. The protections cover dismissal and the broader employment lifecycle (recruitment, terms and conditions, training, promotion, and post-employment references).

Procedural integration

The Act provides for a tiered enforcement regime, with mediation at TADM as the first step and recourse to the ECT or the State Courts where mediation fails. The Act sets out specific remedies including compensation, reinstatement orders, and corrective directions, alongside the remedies traditionally available for wrongful dismissal.

Evidence

Discrimination cases are evidence-intensive. Employees pursuing such claims should document the timeline contemporaneously: dates of relevant statements, the seniority and identity of the speakers, witnesses, and any written communications. The same applies to employers defending such claims — a clear, contemporaneous decision record on selection, performance management, or restructuring rationale is the strongest defence.

Step 1 — receive and review the termination

Read the termination letter carefully. Confirm the stated reason, the last working day, the notice arrangements, any retrenchment benefit, and the final pay computation. Retain the contract, the employee handbook, the relevant policies, and recent performance reviews.

Step 2 — internal grievance

Most contracts and HR policies provide for an internal grievance procedure. Use it. It preserves the employer's opportunity to remedy, it documents the dispute, and it strengthens the position in any subsequent proceeding.

Step 3 — TADM mediation

File a claim with TADM. Mediation is the mandatory first step for most salary and wrongful dismissal claims. Approach with a realistic sense of outcomes.

Step 4 — ECT or higher court

If mediation does not resolve the matter, lodge the claim at the ECT (within the cap) or commence proceedings in the State Courts or the High Court (for higher-value matters). Time limits are short — typically one year from the cause of action for ECT claims.

Step 5 — enforcement

An ECT order is enforceable as a State Courts judgment. Where the employer fails to pay, enforcement proceedings (writ of seizure and sale, garnishee, bankruptcy) follow the usual Rules of Court 2021 mechanisms.

This page is general information, not legal advice. Always consult a Singapore-qualified lawyer holding a current Practising Certificate before acting. For an initial enquiry, see Singapore employment lawyers or contact us via contact us.