Few workplace disputes are as avoidable as those that arise from poor records. Performance management and documentation: protecting your business legally is a topic every Singapore employer should understand, because when an employee challenges a dismissal, the quality of your paperwork often decides how the matter is viewed. This article explains the general principles, so that your business can manage underperformance fairly and keep a reliable record of what was done and why.
Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.
Whether you run a small company with five staff or a growing group with a dedicated HR function, the same logic applies. Performance management and documentation form a single discipline: you set expectations, you measure against them, you give feedback, and you write it all down. Done well, this protects the employee from unfair treatment and protects the employer from avoidable claims.
Who this applies to
These principles are relevant to any Singapore employer, including private limited companies, sole proprietorships and partnerships, that employs staff under the Employment Act or under a written contract of service. They also matter to directors and managers who carry out appraisals, and to HR personnel who maintain employee files.
- Employers with local employees, Employment Pass holders, S Pass holders and Work Permit holders alike.
- Line managers who conduct reviews, issue warnings or recommend dismissal.
- Business owners who rely on informal arrangements and have never formalised an appraisal process.
Key rules and requirements in Singapore
There is no single statute that prescribes a performance management system. Instead, your obligations come from several sources, and a sound documentation practice ties them together.
Contract of employment and the Employment Act
The employment contract sets out duties, expected conduct and the notice period. The Employment Act sets minimum standards for covered employees, including salary payment timelines and notice of termination. An employer may terminate with notice or salary in lieu as provided in the contract, but should still be able to show that the process was handled in good faith.
Wrongful dismissal and the Tripartite Guidelines
An employee who believes they were dismissed without just cause can bring a claim through the Tripartite Alliance for Dismissal Management (TADM) and, where unresolved, the Employment Claims Tribunals. The Tripartite Guidelines on Fair Employment Practices and the Tripartite Guidelines on Wrongful Dismissal expect employers to dismiss on legitimate grounds, such as misconduct, poor performance or redundancy, and to follow a fair process. Poor performance is a recognised ground, but it must be supported by evidence that the employee knew what was expected and had a reasonable opportunity to improve.
Personal data and record keeping
Appraisal notes, warning letters and performance improvement plans contain personal data. Under the Personal Data Protection Act (PDPA), employers must collect and use such data for reasonable purposes, keep it secure, and not retain it longer than necessary. Employee records should also be retained in line with IRAS and Companies Act recordkeeping expectations, which generally call for payroll and related records to be kept for at least five years.
Fair employment practices
Performance standards must be applied consistently and without discrimination on grounds such as age, race, gender, religion or disability. Documentation helps show that decisions were based on work outcomes and not on irrelevant characteristics.
Step-by-step process
A defensible performance process does not need to be complicated. The following sequence works for most Singapore SMEs.
- Set clear expectations. Provide a written job description and, where possible, measurable targets or key performance indicators agreed at the start of each review cycle.
- Review regularly. Hold scheduled one-to-one discussions, at least half-yearly, and record the date, topics covered and any actions agreed.
- Raise concerns early. When performance falls short, state specifically what the gap is, give examples, and explain the standard required. A verbal conversation should be followed by a short written summary.
- Offer support. Training, coaching or adjusted workload may be appropriate. Record what support was offered and whether the employee took it up.
- Issue a performance improvement plan. Set out the targets, the timeframe (commonly one to three months), and the review dates. Ask the employee to acknowledge receipt.
- Allow the employee to respond. Invite comments and keep a note of them. Fairness requires that the employee’s side is heard.
- Decide and document the outcome. If improvement is achieved, record it. If not, document the reasons for any further action, including termination in accordance with the contract.
- Store records securely. Keep the file confidential and accessible only to those with a business need.
Common mistakes to avoid
Relying on memory and informal chats
If a manager says “I told him many times”, but nothing was written, the employer has little to show a tribunal. A two-line email after each conversation is far better than none.
Documenting only after the problem becomes serious
Records created days before a dismissal can appear reactive. Regular documentation, made at the time, carries much more weight.
Inconsistent standards
Penalising one employee for conduct that others routinely get away with invites a claim of unfair treatment. Apply the same standards across comparable roles.
Vague feedback
Comments such as “attitude needs improvement” do not help the employee or the employer. Describe observable behaviour and measurable outcomes instead.
Ignoring the employee’s explanation
A process that never gives the employee a chance to respond looks predetermined. Record their feedback, even when you disagree with it.
Over-collecting or over-retaining personal data
Keeping informal commentary about an employee’s personal life in the file creates PDPA exposure. Keep records factual and work-related.
Practical examples
Example 1: A sales executive missing targets
A Singapore trading company sets a quarterly target of SGD 150,000 in new sales for a sales executive. After the first quarter, the executive achieves SGD 80,000. The manager records the shortfall in writing, meets the executive, agrees on additional product training, and sets a three-month improvement plan with monthly check-ins. If targets are still not met after fair support, the company has a clear paper trail to support a decision to terminate with notice.
Example 2: Attendance and punctuality
An administrative assistant arrives late several times a month. The supervisor keeps attendance records, issues a written reminder referring to the working hours in the employment contract, and records the assistant’s explanation. Because the concern was raised early and documented, the matter is resolved without escalation.
Example 3: A dismissal without records
A company dismisses a long-serving employee for “poor performance” but has no appraisals, warnings or written targets. When the employee files a claim, the employer finds it difficult to show that the reason was genuine. The absence of records, rather than the underlying performance concern, becomes the central issue.
How a corporate secretary can help
A corporate secretary in Singapore does not replace an employment lawyer, but can support the governance side of performance management. Raffles Corporate Services can help your company put in place sensible policies and board-level record keeping, and assist with the practical compliance work that sits around employment, including:
- Maintaining statutory and board records, such as resolutions on key management appointments and remuneration.
- Supporting ACRA BizFile+ filings that follow changes in directors or officers.
- Payroll support, including CPF contributions and IRAS myTax Portal submissions for employment income.
- Accounting and tax support, so that employee-related costs are properly recorded.
- Pointing you to the right advisers where legal advice on a specific dismissal is needed.
Frequently Asked Questions
Can I dismiss an employee for poor performance in Singapore?
Yes, poor performance is generally an accepted ground for termination, provided that it is genuine, supported by evidence, and handled fairly. The employer should also follow the notice requirements in the contract and the Employment Act.
Do I need a performance improvement plan before dismissal?
It is not a statutory requirement, but it is widely regarded as good practice. A documented plan shows that the employee was told what was expected and given a reasonable chance to improve.
How long should I keep performance records?
There is no single period set for appraisal records specifically. As a practical guide, many employers keep employee files for the duration of employment and for a period afterwards, aligned with the five-year recordkeeping norm for payroll and related documents, while observing PDPA retention limits.
Can the employee see their performance records?
Under the PDPA, an individual may request access to their personal data held by an organisation, subject to certain exceptions. Employers should therefore write records on the assumption that the employee may one day read them.
Does this apply to Employment Pass and S Pass holders?
Yes. Foreign employees are entitled to fair treatment under their contracts and applicable law. Employers should also remember that pass cancellation obligations arise on termination, which are handled through the Ministry of Manpower (MOM).
Key takeaways
- No single law dictates a performance management system, so build one around the contract, the Employment Act, the Tripartite Guidelines and the PDPA.
- Set expectations in writing and review them regularly.
- Record conversations promptly, factually and consistently.
- Give employees support and a genuine opportunity to respond before taking serious action.
- Keep records secure and retain them only as long as necessary.
- Seek tailored advice before dismissing an employee, especially in a contested case.
Requirements may change, so always check the latest guidance from ACRA, IRAS or MOM, or consult a professional adviser.
If you would like to find out more about how Raffles Corporate Services can assist with your company’s compliance and corporate secretarial requirements, please get in touch with the team at [email protected].
Yours sincerely,
The editorial team at Raffles Corporate Services
Disclaimer: This does not constitute legal advice. If you require legal advice, please contact a lawyer.