Wrongful Dismissal Arising from Terminating Employees with Cause – Cautionary Note for Employers

Two recent Singapore High Court decisions are stark reminders that the summary dismissal of an employee can cause serious legal issues for a company if not handled well, and can result in wrongful dismissal claims. This is particularly so if it is unclear whether the employee had conducted himself in such manner as to have repudiated the employment contract or engaged in misconduct, amongst other things. The High Court decisions of Wong Sung Boon v Fuji Xerox Singapore Pte Ltd and another [2021] SGHC 24 and Singapore Recreation Club v Abdul Rashid Mohamed Ali and another [2020] SGHC 156 are examples of summary dismissals gone wrong.

While the employees in these two cases were terminated before the Employment Act (“EA“) was expanded in 2019 to apply to all private sector employees, the cases raise important learning points and serve as a helpful reminder on how employers must operate post-2019, in particular in relation to the Section 14 EA due inquiry requirement before an employee may be summarily dismissed for misconduct. This Update provides a brief overview of the events in the two decisions and our comments on employers summarily dismissing an employee post-2019.