Wrongful or Unfair Dismissal That Will Be Heard by Employment Claims Tribunal

Mr Louis Ng Kok Kwang asked the Minister for Manpower what constitutes claims for "wrongful" or "unfair" dismissal which will be heard by the Employment Claims Tribunal.

The Second Minister for Manpower (Mrs Josephine Teo) (for the Minister for Manpower): Mr Speaker, the Employment Act (EA) provides remedies against two forms of wrongful dismissal.

The first form of wrongful dismissal involves dismissal on grounds other than poor performance, misconduct or redundancy. If the employer dismisses an employee because of his poor performance or misconduct, the employer must be able to substantiate his case.

The second form of wrongful dismissal involves pregnant employees whose contracts have been terminated without their receiving maternity benefits.

Both forms of wrongful dismissal claims will be heard by the Employment Claims Tribunals (ECT), after the EA is amended.

Mr Louis Ng Kok Kwang (Nee Soon): Sir, the typical recourse for wrongful dismissal has been the notice period, the argument being that the only loss that one has suffered is the loss of not having given notice. So, can the Employment Claims Tribunals (ECT) also recognise damages that go beyond the notice period, so that we also recognise the mental and emotional anguish that one has suffered in such situations?

Mrs Josephine Teo: Sir, there are a range of remedies. It really depends on the facts of the case. It depends on whether the employer was able to substantiate the claims, and if he is unable to, the employer may be ordered to reinstate the employee, to provide compensation. And if the employer does not comply with the order, then he can also be prosecuted.

As to what the compensation should include, it is up to the Employment Claims Tribunal (ECT) to assess, and that will also depend on what was presented to the Tribunal by the claimant in terms of the range of losses suffered.

Mr Patrick Tay Teck Guan (West Coast): I have three supplementary questions for the Second Minister. Firstly, whether constructive dismissals, forced resignations, non-renewal of contracts and non-confirmation during probation are covered under section 14 – wrongful or unfair dismissals?

Second question: whether employers should be required to give reasons when terminating the contract with notice and salary in lieu of notice.

Third, whether MOM will consider coming up with a set of FAQs or guidelines publicly to provide more clarity and certainty as to what amounts to an unfair dismissal.

Mrs Josephine Teo: Mr Speaker, I shall try and answer all three questions. The first is on two different sets of dismissals. One – on constructive dismissals or forced resignations, the answer to the question is yes. The Employment Claims Tribunal will look into these.

The second set has to do with non-renewals of contracts and non-confirmation during probation. Now, these are not the same at all, because in such instances, there was already an agreement that the contract would come to an end, if not renewed, or there may not be continued employment after probation. These two types of situations do not fall within the ambit of wrongful dismissals, but if any contract terms were not met, then the employee can certainly bring the matter up to the Tripartite Alliance for Dispute Management. So, that is on the first question.

On the second question on whether the employer should be required to give reasons even when terminating a contract with notice or salary in lieu of notice – well, in most employment contracts, the employee may resign with notice and not provide reasons. So, the same applies to employers. They can also terminate with notice and not provide reasons. But this does not stop the employee from taking up the matter with MOM or the Tripartite Alliance for Dispute Management, if other contract terms were not met, or if he believed that his dismissal was wrongful in some way.

On the third question on FAQs, the short answer is yes. MOM will work with our tripartite partners to do so.

Mr Louis Ng Kok Kwang: Can I just confirm that for wrongful dismissal, the Employment Claims Tribunal (ECT) can recognise damages that go beyond the notice period? They do not just compensate on the one or two months' notice that they were not given?

Mrs Josephine Teo: It will depend on the claims of losses – in this case – that the employee puts up, and then the ECT will have to assess. I think it is very hard to say in the absence of facts of the case.