Singapore
Answer ... Care should be taken by both employers and employees when negotiating and drafting employment contracts. Ensuring that employment contracts are clear and comprehensive is the most effective way to prevent disputes in relation to, and/or arising from, an employment relationship.
Prior to termination of an employment contract, employers should take extra care to ascertain whether any misconduct has been committed prior to such termination, as this may affect the grounds that the employer can rely on to terminate the employment contract and the benefits/repercussions arising thereunder.
Both employers and employees should seek to resolve disputes amicably before commencing any legal action. Under the Rules of Court 2021 (effective 1 April 2022), it is now compulsory for a party to make an offer of amicable resolution before commencing legal action, unless the party has reasonable grounds not to do so. Such offers must be open for acceptance within a reasonable period of time and, in any case, for at least 14 days, unless the parties agree otherwise. The Singapore courts are also empowered to order parties to attempt to resolve the dispute by amicable resolution.
If an employee chooses to file a complaint with the Tripartite Alliance for Dispute Management, both employer and employee must attempt mediation before they can file a complaint with the Employment Claims Tribunal.
Employers should always strive to be above board and act in line with the various laws, guidelines and advisories issued. Both employers and employees are encouraged to seek legal advice and/or consult the Ministry of Manpower if they are in doubt, and especially before taking any drastic steps.
Ultimately, Singapore’s employment regime aims to balance fairness to both employers and employees, while also affording flexibility in employment practices based on prevailing market trends and conditions. The Ministry of Manpower functions as an effective watchdog alongside other supporting statutory boards, trade unions and complementary organisations.