Terminations, Dismissal & Transfers

Transfer, Termination, Dismissal & Retrenchment - Learning points from SNEF Workshop Practice govern by 1. 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 Practices” 6. Common Law Transfer (Internal & External)  (IRA) Transfer deemed as lawful “…provided that such transfer does not entail a change to the detriment of an employee in regards to his terms of employment”. Within the rights of the employer to transfer a person without a change in package (e.g. appointment or title) or in terms of employment. However employee also has the rights to reject transfer.  “Forced” transfer may lead to Constructive Dismissal: Employee termination of employment in response to employer’s 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 to transfer any employee to any of the subsidiaries within the Group to undertake responsibilities and to perform any duties appropriate to the employee’s job grade.” • Internal letter with options Termination  Include voluntary termination (employee initiated ones such as resignation or retirement) and involuntary termination (employer initiated such as Frustration, Retrenchment or Dismissal)  Contractual notice should be honoured for all termination except for the case Frustration or Dismissal 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 implied conditions of his service...”  Misconduct include work performance  (EA & CDCA) “Unlawful to dismiss employee DURING her maternity leave…Notice of Dismissal without sufficient cause & within 3 months before her childbirth does not deprive her of maternity leave benefit from employer”  Employee may appeal to MOM within 1 month from last date of service if he/she considers that dismissal was without just cause; regardless of due inquiry. 2 months for female employees after childbirth.  Safeguard mechanisms • Warning (verbal or written) issued to employee to ensure job requirements are expressed explicitly • Ensure proper inquiry is done o 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 Inquiry Officer’s duty to recommend any punishment. Retrenchment  (EA) “No employee who has been in continuous service with an employer for less than 3 years 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