Employment contracts are crucial for establishing a clear and effective working relationship. Nonetheless, unforeseen challenges may emerge that interfere with these agreements. When an employer or employee does not fulfill their contractual obligations, the repercussions can be considerable.

Definition of a Breach of Contract

In Singapore, employment contracts are primarily governed by the Employment Act and common law. The Employment Act outlines essential regulations that must be adhered to by both parties. Employers face significant legal consequences for non-compliance, as outlined in Section 112 of the Act. It is essential to acknowledge that employees have specific responsibilities to uphold as well.

Let us examine in detail the implications of breaching an employment contract and the potential actions that may be taken in response.

Understanding Breach of Contract

An employment contract serves as a formal agreement, representing a legal commitment between an employer and an employee. If one party fails to meet their obligations, it is regarded as a breach. This encompasses both the explicit terms of the contract and the implied responsibilities, including the maintenance of trust

The term “material breach” denotes a significant violation that affects the fundamental aspects of the agreement. Instances encompass an employer’s delay in wage payments or an employee’s unwillingness to fulfill their responsibilities—both regarded as significant violations.

Circumstances Under Which a Breach is Mandatorily Initiated by Legislation

In accordance with Singapore’s Employment Act, specific violations are classified as breaches by default. If an employer fails to pay salaries punctually, they are regarded as being in breach, which may result in penalties or legal repercussions.

In a similar vein, an employee’s absence for more than two consecutive days without a valid reason and without notifying their employer constitutes a violation of legal obligations.

Frequent Employee Violations and Employer Responses

Singapore’s employment laws aim to safeguard the interests of both employers and employees. When an employee breaches their contract, employers have several avenues for addressing the situation.

Common violations by employees encompass:

• Unapproved Absence: Failing to report to work without prior notification.
• Confidentiality Violations: Sharing sensitive company information with individuals who are not authorized to receive it.
• Inappropriate Conduct: Participating in unacceptable behavior, including being under the influence of alcohol while at work.
• Negligence: Failing to adhere to safety protocols or improperly managing company assets.
• Theft: Unauthorized acquisition of organizational assets.

Employers have the option to address minor infractions through informal means. In cases of significant breaches, they reserve the right to terminate the contract without delay or pursue compensation for any losses sustained.

Frequent Violations by Employers and Available Employee Solutions

Employers are also susceptible to breaches. Frequent infractions encompass unpaid wages, wrongful termination, and matters pertaining to workplace discrimination or harassment.

Employees can take the following steps to address these breaches:

• Late Salary Payments: Should wages be overdue by more than seven days, employees have the right to resign without notice and may file a claim with the Tripartite Alliance for Dispute Management (TADM) or the Employment Claims Tribunal (ECT) to recover their outstanding payments.

• Unfair Dismissal: Employees who are compelled to resign or are terminated without valid reasons may pursue mediation through TADM. If mediation fails to resolve the issue, the next step is to escalate it to the ECT.
• Discrimination & Harassment: Employees encountering these challenges may report them to TAFEP or seek recourse under the Protection from Harassment Act.

• Unsafe Work Conditions: It is imperative for employers to guarantee a safe working environment. Should they neglect to comply, employees may seek compensation in accordance with the Work Injury Compensation Act.

Steps to Follow in the Event of a Breach

Should you suspect a violation of your employment contract, or if you face allegations of breaching one, it is essential to obtain legal counsel promptly. A knowledgeable employment lawyer can assist you in comprehending your rights and determining the suitable next steps.

Mediation is frequently the favored approach for dispute resolution because of its cost-effectiveness; however, if mediation fails to achieve a resolution, a more formal legal strategy may be required.

Proactive Measures are Essential

To prevent contract disputes, it is essential to draft clear and detailed employment agreements from the outset. Engaging a legal expert during the contract creation process can clearly define the responsibilities of both parties, thereby minimizing the potential for future misunderstandings or breaches.