Employment doesn’t necessarily end when probation expires, S’pore court rules

The Singapore Court of Appeal has upheld a decision made by the Employment Claims Tribunal, which ordered a law firm to pay a former supporting officer a salary equivalent to one month's notice, despite the expiration of his probation period. The court dismissed the law firm's appeal against this ruling, determining that the length of the probation period and the terms of employment were stipulated within the employment contract.

The officer, Ghui Meng Yang, was employed by Nanyang Law in April 2023 with a three-month probationary period ending on July 9. The law firm informed Ghui of his unsuitability a few days before the probation period ended and offered him a goodwill payment, which he refused as he believed he was entitled to one month's notice or a salary in lieu of notice.

The law firm argued that the expiry of the probation period automatically ended his employment without the need for notice or payment, citing performance concerns during his probation. The law firm also claimed that the purpose of probation was to avoid having to continue employing unsuitable staff during the notice period. However, the Court of Appeal disagreed, acknowledging that this concern could be addressed through clear drafting of employment contracts.

The Court of Appeal concluded that Ghui was entitled to one month's notice, awarding him S$2,857.14 for the remaining 20 working days of the notice period and S$30 in disbursements.