Singapore Termination Rules: Notice, Severance, and Wrongful Dismissal (2026)

Singapore's Employment Act governs termination procedures for all covered employees. Either party can terminate by giving notice as specified in the employment contract or as per statutory defaults (1 day to 4 weeks). Singapore has no mandatory severance pay. Wrongful dismissal claims can be filed with the Employment Claims Tribunal within 1 month of dismissal.

What Are the Notice Period Requirements in Singapore?

Notice periods follow the employment contract. If the contract does not specify a notice period, Section 10 of the Employment Act applies. Less than 26 weeks of service: 1 day notice. 26 weeks to 2 years: 1 week. 2 to 5 years: 2 weeks. 5 years and above: 4 weeks. Either party can pay salary in lieu of notice.

Most employment contracts specify notice periods longer than the statutory defaults. Common contractual notice: 1-3 months for professionals, 1-2 weeks for non-executives. During the notice period, employees are entitled to paid time off for job interviews (1 day per week for the last 4 weeks if terminated by the employer).

What Are the Grounds for Dismissal in Singapore?

Singapore law permits termination for any reason provided proper notice is given. No justification is required for termination with notice. Dismissal without notice is permitted only for employee misconduct (Section 14 of the Employment Act). Misconduct grounds include: willful disobedience, dishonesty, disorderly conduct, habitual absence without permission, and criminal conviction.

Dismissal without notice requires a due inquiry. The employer must investigate the alleged misconduct before dismissing. The employee must be given an opportunity to respond. Dismissal during the inquiry is possible with suspension (up to 1 week with at least half pay). If misconduct is proven, no notice or payment in lieu is required. If not proven, the employee must be restored with full back pay.

Does Singapore Have Mandatory Severance Pay?

No. Singapore does not have a statutory requirement for severance pay. Retrenchment benefits are a matter of contractual agreement or company policy, not law. The market norm for retrenchment benefits is 2 weeks to 1 month of salary per year of service. MOM's Tripartite Advisory recommends providing retrenchment benefits but does not mandate them.

Employees with at least 2 years of service who are retrenched due to redundancy are eligible for retrenchment benefits if specified in their employment contract or collective agreement. If no provision exists, the employer is not legally obligated to pay. Companies retrenching 5+ employees within 6 months must notify MOM within 5 working days.

What Is Wrongful Dismissal in Singapore?

Wrongful dismissal occurs when an employee is dismissed without just cause or excuse. The Employment Act (Section 14) and case law define wrongful dismissal as: termination motivated by discrimination (age, race, gender, religion, disability, pregnancy), retaliation for whistleblowing or exercising employment rights, or dismissal without following contractual or statutory procedures.

Employees can file a wrongful dismissal claim with the Tripartite Alliance for Dispute Management (TADM) within 1 month of dismissal. If mediation fails, the case proceeds to the Employment Claims Tribunal (ECT). Remedies include reinstatement or compensation up to 6 months' salary (ECT cap for wrongful dismissal claims).

How Does Retrenchment Work in Singapore?

Retrenchment (redundancy) should follow MOM's Tripartite Advisory. Steps: explore alternatives first (no-pay leave, shorter hours, retraining), apply fair selection criteria (LIFO: last in first out: is common), notify affected employees with adequate notice, provide retrenchment benefits, notify MOM (mandatory if 5+ employees in 6 months), and assist with outplacement.

Selection criteria must be objective and non-discriminatory. Employers cannot select employees for retrenchment based on nationality, age, gender, or other protected characteristics. MOM monitors retrenchment exercises and may curtail work pass privileges for employers who retrench local workers to replace them with foreign workers.

Aniday's EOR Singapore (Aniday EOR Singapore) manages the full termination and retrenchment process including notice administration, final payment calculation, CPF cessation, work pass cancellation, and MOM notifications.

What Happens to Work Passes Upon Termination?

The employer must cancel the work pass within 7 days of employment termination. The foreign employee receives a Short-Term Visit Pass (STVP) valid for 30 days to make arrangements for departure. During the STVP period, the employee cannot work. Failure to cancel the work pass within 7 days is an offense under the Employment of Foreign Manpower Act.

If the employee finds a new employer, the new employer submits a new work pass application. The employee can remain in Singapore on the STVP while the new pass is processed. EP holders do not need to leave Singapore between jobs. S Pass and WP holders face more restrictions on changing employers and may need to return to their home country first.

Can an employer terminate during probation in Singapore?

Yes. Probation termination follows the notice period specified in the contract (typically 1-2 weeks during probation). If no notice period is specified, statutory defaults apply. The employer does not need to provide reasons for probation termination. The termination must not be discriminatory or retaliatory.

Is there a minimum employment period before termination in Singapore?

No. Singapore has no minimum employment period. An employer can terminate on the first day of employment by giving the applicable notice or paying salary in lieu. The 1-day notice period applies for employment of less than 26 weeks. There is no concept of a protected initial employment period.

Can an employee claim wrongful dismissal during probation?

Yes. Wrongful dismissal claims are available to all employees covered by the Employment Act, regardless of probation status. If the dismissal was motivated by discrimination or retaliation, the employee can file a claim with TADM within 1 month. The burden of proof is on the employee to demonstrate the dismissal was without just cause.

What is the process for terminating an EP holder?

Steps: serve notice per contract, process final salary within 7 days, file IR21 (tax clearance) at least 1 month before departure date, cancel EP within 7 days of last working day, obtain STVP if the employee needs time before departure. IRAS must clear the IR21 before final payment. The employer is liable for the employee's tax if IR21 is not filed.

Does constructive dismissal exist in Singapore?

Yes. Constructive dismissal occurs when the employer's conduct is so unreasonable that the employee has no choice but to resign. Examples: significant unilateral salary reduction, hostile work environment, demotion without cause. The employee can claim wrongful dismissal despite having resigned. Claims follow the same TADM/ECT process.

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