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Transfer, Termination, Dismissal & Retrenchment - Learning points from SNEF Workshop

Practice govern by1. Employment Act (EA)2. Industrial Relations Act (IRA)

3. Retirement Age Act (RAA)4. Children Development Co-Savings Act (CDCA)

5. Tripartite Guidelines on Fair Employment Practices6. Common Law

Transfer (Internal & External)

(IRA) Transfer deemed as lawful provided that such transfer does not entail a change to thedetriment of an employee in regards to his terms of employment. Within the rights of theemployer to transfer a person without a change in package (e.g. appointment or title) or in terms ofemployment. However employee also has the rights to reject transfer.

Forced transfer may lead to Constructive Dismissal: Employee termination of employment in

response to employers treatment

(EA) Employee includes employees whose basic salary => $1600 p.m. but exclude executives(e.g. CEO). Consistent practice should be applied as management staff can refer to MOM.

Current process Conversation between leader & employee > eHR (Movement & Transition) >

eHR transaction report > Internal letter issued

Feasible safeguard mechanisms

Transferability clause: Arising from exigencies of service, the Company reserves the right totransfer any employee to any of the subsidiaries within the Group to undertake responsibilitiesand to perform any duties appropriate to the employees job grade.

Internal letter with optionsTermination

Include voluntary termination (employee initiated ones such as resignation or retirement) andinvoluntary termination (employer initiated such as Frustration, Retrenchment or Dismissal)

Contractual notice should be honoured for all termination except for the case Frustration orDismissal

Dismissal

(EA) Employer may AFTER DUE INQUIRY DISMISS WITHOUT NOTICE an employee

on the ground of MISCONDUCT inconsistent with the fulfilment of the express or impliedconditions of his service...

Misconduct include work performance

(EA & CDCA) Unlawful to dismiss employee DURING her maternity leaveNotice of

Dismissal without sufficient cause & within 3 months before her childbirth does not deprive her ofmaternity leave benefit from employer

Employee may appeal to MOM within 1 month from last date of service if he/she considersthat dismissal was without just cause; regardless of due inquiry. 2 months for female employeesafter childbirth.

Safeguard mechanisms

Warning (verbal or written) issued to employee to ensure job requirements are expressed

explicitly

Ensure proper inquiry is doneo Have definite charge/s has been communicated to employee in a form of a

written notice. Notice also specify date, time and place of inquiry.o Ensure person conducting the inquiry is not directly connected with the

investigation of the misconduct (e.g. Security)

o After inquiry is over, Inquiry Officer must consider all evidence and record his

conclusions and reasons thereof and submit findings to management. It is not InquiryOfficers duty to recommend any punishment.

Retrenchment

(EA) No employee who has been in continuous service with an employer for less than 3years shall be entitled to any retrenchment benefit on the termination of his service by the

employer on the ground of redundancy

Tripartite Guidelines:

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No minimum benefit to prevent imposing excessive burden on employers

Maximum benefit calculated by Quantum X Years of Service (capped @ 25 years)

Retrenchment benefits depends on individual contract or Collective Agreement