Quick Answer
Ending employment in Singapore requires notice that scales with length of service (1 day to 4 weeks), unless either party pays salary in lieu. Dismissing for misconduct without notice requires a formal inquiry first. Retrenching any number of employees requires MOM notification if you have 10 or more employees, within 5 working days — and that specific rule carries published administrative penalties, unlike most Employment Act breaches. Dismissal without just cause, or for a discriminatory or retaliatory reason, is wrongful and can be challenged at the Employment Claims Tribunals within 1 month of the employee’s last day.
Notice Periods
Unless the employment contract specifies otherwise, the Employment Act sets a statutory minimum notice period for ending employment, and it applies equally to both employer and employee — whoever is doing the terminating owes the same notice. The count includes public holidays, rest days, and non-working days, and notice must be given in writing.
| Length of Service | Minimum Notice |
|---|---|
| Less than 26 weeks | 1 day |
| 26 weeks to less than 2 years | 1 week |
| 2 years to less than 5 years | 2 weeks |
| 5 years or more | 4 weeks |
Either party can pay salary in lieu of notice instead of serving it — an amount equivalent to what the employee would have earned during the notice period. CPF contributions apply to a served notice period but are not required on salary paid in lieu of notice. Both parties can also agree in writing to waive notice entirely. Unless the contract states a different notice period for probation, the same table applies during probation as after confirmation.
🏛️ Source: MOM — Termination With Notice and MOM FAQ — Notice During Probation. These minimums should be set out clearly in the employee’s Key Employment Terms — see our Employment Act guide.
Termination Without Notice
Either party can end employment immediately by paying salary in lieu of notice. Beyond that, the Employment Act allows termination without any notice or payment in specific circumstances. You can terminate without notice if the employee is continuously absent from work for more than 2 working days without approval and without informing you or attempting to. An employee can do the same if you fail to pay salary within 7 days of it being due. Whichever party breached the terms of employment is the one who owes salary in lieu of notice.
Dismissing for misconduct — the Act’s examples include theft, dishonesty, disorderly or immoral conduct at work, and insubordination — is a separate route, but it isn’t a shortcut. Before dismissing, you must hold a formal inquiry that informs the employee of the allegation, lets them present their case, and is conducted by someone without apparent bias. You can suspend the employee pending the inquiry for up to 1 week without MOM’s Commissioner’s approval (at no less than half salary during that period); extending the suspension needs the Commissioner’s approval, requested at least 3 working days before the week is up. If the inquiry doesn’t establish misconduct, you must restore any salary withheld. If it does, your options are instant downgrading, suspension without pay for up to a week, or termination without notice and without salary in lieu.
⚖️ MOM Requirement
Skipping the due inquiry before a misconduct dismissal doesn’t just risk a wrongful dismissal claim — it undermines your basis for withholding notice pay in the first place. Document the inquiry (the allegation put to the employee, their response, and who conducted it) every time.
🏛️ Source: MOM — Termination Without Notice and MOM — Termination Due to Misconduct.
Retrenchment
Retrenchment — ending employment because the role itself is redundant, not because of the employee’s conduct or performance — should be a last resort after exploring alternatives like redeployment or temporary layoffs, and it must be carried out responsibly and fairly.
If your business has 10 or more employees, you must notify MOM of any retrenchment, regardless of how many employees are affected, within 5 working days of notifying the employee. This replaced the older rule (retrenching 5 or more within 6 months) from 1 November 2021 — the trigger today is your company’s headcount, not the retrenchment’s size. Notification is submitted online via MOM’s “Notify for Retrenchment Exercise” eService, covering company details, union consultation status, total employee count, and details of each affected employee including their retrenchment benefit.
📋 Classification Note
Retrenchment benefit is not a statutory Employment Act entitlement — it depends on what your contract or collective agreement provides, and is negotiated where there’s no provision. MOM’s current guidance describes 2 years’ service as the point at which retrenchment benefit is typically considered, with a norm of one month’s salary per year of service in unionised companies and 2 weeks’ to a month’s salary per year of service in non-unionised companies, depending on the company’s financial position and industry norms.
For selecting who to retrench, MOM’s guidance calls for objective criteria — ability, experience, and skills — rather than any single fixed formula; there’s no MOM-endorsed “last in, first out” rule, so build your selection around documented, job-relevant criteria instead of tenure alone.
⚠️ Penalty Risk
Unlike most Employment Act breaches, missing the retrenchment notification deadline has a published price tag: $1,000 for a first contravention and $2,000 for subsequent ones under the Employment (Administrative Penalties) Regulations 2016. Ignoring a formal compliance direction escalates to a criminal offence — a fine of up to $5,000, imprisonment of up to 6 months, or both.
Wrongful Dismissal
A dismissal is wrongful if it’s without just or sufficient cause, if it’s discriminatory (on grounds like age, race, gender, religion, marital status, family responsibilities, or disability), if it’s meant to deprive the employee of benefits they would otherwise have earned, if it’s retaliation for exercising an employment right such as filing a TADM claim or declining overtime, or if the reason given for dismissal with notice turns out to be false. Dismissals for poor performance, misconduct, or genuine redundancy are not, on their own, wrongful.
A wrongful dismissal claim must go to the Tripartite Alliance for Dispute Management (TADM) first for mediation; if it isn’t resolved there, TADM issues a claim referral certificate and the matter proceeds to the Employment Claims Tribunals (ECT), which applies the Tripartite Guidelines on Wrongful Dismissal when deciding. Employees have 1 month from their last day of work to file — pregnant employees get 2 months from their date of confinement. Claims can go up to $20,000 through the standard pathway, or $30,000 via the Tripartite Mediation Framework or union-assisted mediation. If the ECT finds a dismissal wrongful, it can order reinstatement with back pay or monetary compensation.
Final Pay
When final salary is due depends on how the employment ended. An employee who resigns with proper notice is paid on their last day of employment. One who resigns without serving the required notice is paid within 7 days of their last day. If you dismiss for misconduct after a due inquiry, or terminate the contract on your own initiative, final salary is due on the last day of employment or, if that’s not possible, within 3 working days.
| Scenario | Final Salary Due |
|---|---|
| Employee resigns with proper notice | Last day of employment |
| Employee resigns without serving notice | Within 7 days of last day |
| Employer dismisses (misconduct, after due inquiry) or terminates | Last day, or within 3 working days if not possible |
For a foreign employee, you may withhold monies owed for up to 30 days after notifying IRAS of the cessation of employment, to complete tax clearance. Any unused statutory annual leave that hasn’t been taken is generally payable out on cessation of service — but how it’s calculated and what, if anything, beyond the statutory minimum gets encashed should be set out in the employment contract; see our leave entitlements guide for the underlying accrual rules.
🏛️ Source: MOM — Paying Salary and MOM FAQ — Notice Pay and Timing on Early Release.
Terminating Correctly vs Getting It Wrong
| ✅ Compliant | ❌ Non-Compliant |
|---|---|
| Hold a documented due inquiry before any misconduct dismissal | Dismiss for misconduct on the spot with no inquiry or documentation |
| Notify MOM within 5 working days of any retrenchment if you have 10+ employees | Assume notification is only required once 5+ employees are retrenched |
| Select retrenched employees using documented, objective criteria | Retrench purely by tenure without recording the selection rationale |
🏛️ Source: MOM — Employers Convicted Under the Employment Act. Beyond the retrenchment-notification fines above, MOM doesn’t publish a general fine schedule for wrongful dismissal or notice-period breaches — it investigates complaints and, where warranted, prosecutes and lists convicted employers publicly. Get your CPF and payroll basics right first — see our CPF contributions guide.
Frequently Asked Questions
How much notice must I give to terminate an employee?
Between 1 day and 4 weeks depending on length of service, unless the contract specifies otherwise — 1 day under 26 weeks’ service, 1 week from 26 weeks to under 2 years, 2 weeks from 2 to under 5 years, and 4 weeks for 5 years or more.
Can I dismiss an employee without notice for misconduct?
Only after holding a formal due inquiry — informing the employee of the allegation, letting them respond, and ensuring the person conducting it has no apparent bias. Skipping this step undermines your basis for withholding notice pay.
When do I need to notify MOM about a retrenchment?
If your business has 10 or more employees, you must notify MOM within 5 working days of any retrenchment, regardless of how many employees are affected — this applies to every retrenchment, not just larger exercises.
Am I legally required to pay retrenchment benefit?
Not under the Employment Act itself — it depends on what your employment contract or collective agreement provides. MOM’s guidance describes 2 years’ service as the typical threshold, with norms of around one month’s salary per year of service in unionised companies and 2 weeks’ to a month’s in non-unionised companies.
What makes a dismissal wrongful?
Dismissing without just cause, for a discriminatory reason, to deprive the employee of benefits they’d otherwise earn, in retaliation for exercising an employment right, or on a false stated reason. Dismissals for poor performance, misconduct, or genuine redundancy are not wrongful on their own.
How long does an employee have to file a wrongful dismissal claim?
1 month from their last day of work, or 2 months from the date of confinement for a pregnant employee — filed first with TADM for mediation before it can proceed to the Employment Claims Tribunals.
When must I pay an employee’s final salary?
On their last day if they resigned with proper notice; within 7 days if they resigned without serving notice; and on the last day (or within 3 working days if not possible) if you dismissed or terminated them.
What’s the penalty for missing a retrenchment notification?
$1,000 for a first contravention and $2,000 for subsequent ones under the Employment (Administrative Penalties) Regulations 2016. Ignoring a formal compliance direction escalates to a criminal offence — a fine of up to $5,000, imprisonment of up to 6 months, or both.
Last verified: 10 September 2026
WorkRightSG provides general information only. Nothing on this site constitutes legal advice. For advice specific to your situation, consult a qualified employment lawyer or contact the Ministry of Manpower directly.