What employers should know before dismissing staff on probation
A recent court ruling has raised concerns about the legal risks of failing probationary employees.
Employers dismissing staff on probation in Singapore must ensure they provide proper documentation backing performance claims, as a recent Employment Claims Tribunals (ECT) ruling highlighted the risk of wrongful dismissal lawsuits. The ECT awarded a woman $30,000 for her dismissal just before her six-month probation period, stating the employer failed to justify her performance below the required standards.
Experts advise that companies spend significant resources on hiring and should try to retain employees, but dismissals during probation are rare. HR professionals recommend regular feedback and a clear performance evaluation process to avoid disputes. Subjective comments like "not committed enough" could be difficult to defend if expected standards were not clearly defined.
Eligibility for wrongful dismissal claims depends on factors such as role and service length. Under the Employment Act, managers and executives must work at least six months to qualify for a claim, unless terminated without notice and severance. Non-managers and non-executives do not require a minimum service period.
The six-month threshold was set by the tripartite partners because managerial and executive roles need more time to assess suitability and performance. However, extending probation may be a better option when performance concerns surface later, especially in a regionally diverse workforce. If issues involve fundamental misalignment, a prompt contractual exit while honoring notice terms is fairer to both parties.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
