Man wins S$26,350 in claims after employer dismisses him without notice or payment

A Singaporean man has successfully challenged his dismissal, securing S$26,350 (US$20,363) in claims against his former employer. The man, who was dismissed approximately three months after turning 63 – the statutory retirement age at the time – took his case to the Employment Claims Tribunals. He sought damages for wrongful dismissal and an employment assistance payment.

The company had argued that its termination was lawful, asserting it was retiring the employee and therefore not required to provide notice or salary in lieu of notice. It also claimed the man had rejected a re-employment offer, absolving them of the need to provide an employment assistance payment.

However, Tribunal Magistrate Joel Tan ruled in the retiree's favor, stating that companies must adhere to contractual and Employment Act requirements for notice or salary in lieu when terminating employment upon an employee reaching retirement age. The magistrate found the company's re-employment process lacking, as it did not reasonably consult or engage the claimant about his potential redeployment.

Furthermore, the re-employment offer was for a six-month contract, whereas the Retirement and Re-employment Act generally mandates a one-year term unless both parties agree otherwise. The tribunal noted that the company's offer was also for a reduced salary and a different role, despite the claimant's previous position as an area manager. The case highlights the importance of proper procedure and consultation during employee retirements and re-employment processes in Singapore.