Employment contracts are crucial for establishing a strong working relationship, but occasionally, unforeseen circumstances can disrupt the intended course of action. When either an employer or an employee fails to fulfill their obligations, the repercussions of a contract breach can be quite severe.
In Singapore, employment contracts are mainly regulated by the Employment Act and common law. The Employment Act outlines the fundamental guidelines that must be adhered to. Failure to adhere to these rules can have significant consequences, particularly for employers who may be subject to legal action as outlined in Section 112 of the Act. However, it’s important to note that employers are not the only ones with responsibilities. Employees also have their own set of obligations.
Now, we will examine the concept of breaching an employment contract and discuss the appropriate actions to take in such a situation.
Understanding the Concept of a Breach of Contract
An employment contract goes beyond being a mere formal agreement; it represents a legally binding commitment between an employer and an employee. If one party fails to fulfill their obligations, it is regarded as a violation of the contract. It is crucial to consider not only the explicit requirements, but also the unspoken expectations, such as the need to uphold trust.
One may come across the term “material breach” being used. This refers to a serious violation that undermines the integrity of the contract. For instance, if an employer fails to pay an employee promptly or if an employee neglects their responsibilities, these are significant infractions that cannot be ignored.
When a Breach is Automatically Detected by the Law
According to Singapore’s Employment Act, there are specific actions or inactions that are considered as a breach of contract. For example, if an employer fails to pay their employees on time, they are immediately seen as in violation. This could result in significant penalties or even incarceration.
In the same vein, if an employee fails to provide a valid reason or inform their employer about their absence from work for more than two consecutive days, it is considered a violation of the law.
Common Breaches by Employees—and How Employers Can Address Them
Employment law in Singapore provides comprehensive protection for both employees and employers. When an employee violates their contract, employers have several options to handle the situation.
Typical infractions committed by employees include:
Skipping work: Not showing up for work without a valid reason or notice. Breaking Confidentiality: Sharing company secrets or sensitive information with individuals outside the company.
Unprofessional Behavior: Engaging in inappropriate conduct in the workplace, such as being intoxicated or under the influence of substances.
Lack of attention: Disregarding safety protocols or being inattentive with company assets.
Unauthorized acquisition of company assets.
In more severe situations, employers may initially attempt to address the matter through informal means. However, if that approach proves ineffective, there are legal options at their disposal. Employers have the authority to terminate the contract, potentially with immediate effect, based on the seriousness of the breach. They may also pursue reimbursement for any monetary damages resulting from the employee’s behavior.
Common Violations by Employers—and How Employees Can Respond
Employers also face the risk of breaches. Common issues often involve situations where salaries are not paid or dismissals are handled improperly. Discrimination and harassment are significant violations that should not be taken lightly.
Here’s what individuals can do if their employer violates the contract:
Prompt Payment of Salaries: In the event that an employer does not fulfill their obligation to pay employees on time, it is within the employees’ rights to leave their position without providing notice if the payment is overdue by more than seven days. One option available is to file a claim with the Tripartite Alliance for Dispute Management (TADM) or the Employment Claims Tribunal (ECT) in order to recover unpaid wages.
Wrongful Dismissal: Being compelled to resign or being terminated without valid grounds is considered as an instance of wrongful dismissal. Employees have the option to seek mediation through TADM, and if that fails to resolve the issue, they can escalate their case to the ECT.
Employees who encounter discrimination or harassment have the option to report such incidents to the Tripartite Alliance for Fair & Progressive Employment Practices (TAFEP) or seek legal protection under the Protection from Harassment Act.
Ensuring workplace safety is a legal obligation for employers. If they do not fulfill this requirement, employees have the right to seek compensation under the Work Injury Compensation Act.
Steps to Take When Dealing with a Breach of Contract
If you ever find yourself in a situation where your employment contract has been violated—or if you’re accused of violating one—it is of utmost importance to promptly seek legal advice. Seeking guidance from an experienced employment lawyer can assist you in understanding your rights and determining the most suitable course of action.
Mediation is a commonly chosen initial approach, known for its efficiency in terms of time and cost savings. However, in the event that mediation does not result in a resolution, it is crucial to have a well-developed legal strategy.
What is the most effective approach to prevent these conflicts? Begin by creating a meticulously crafted employment agreement. Seeking guidance from an expert during the process of drafting these agreements can greatly enhance the clarity of responsibilities for both parties involved, thereby minimizing the chances of future breaches.
