HRSINGAPORE Community Discussions
Wrongful Dismissal or Retrenchment
Dear HR Professionals,
I would like to know if the company ask staff to resign without giving any valid reason, will this be considered as wrongful dismissal of retrenchment? Is the staff entitled to any benefits? The staff has been with the company for more than 20 years.
Appreciate any advice you can give. Thanks.
A responsible employer, will not dismiss or terminate an employee without justification. The staff has the right to appeal to MOM if he/she feels that this is a wrongful dismissal. MOM will proceed with an investigation if the staff can prove his/her case. MOM will determine if he/she should be reinstated or compensated. Even at retirement age, the Re-employment Act protects eligible staff from wrongful dismissal. As HR practitioners, we need to guide the employer to act responsibly and build up a case before firing a staff.
If the staff resigns voluntarily, there is no issue. If the staff is forced/coerced to resign (or terminated without a valid reason), it may be construed as wrongful dismissal or retrenchment.
As an HR professional, you should question why someone is being asked to leave, after serving 20 years! If his or her performance has been a problem, has this been recorded in the performance review over the years? Or if the job is redundant, then do the right thing and let go with retrenchment payment.