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A manager discovers that a staff member has been inflating expense claims, leaking customer lists or abusing colleagues. The instinct is to end the employment the same day. Singapore law allows a company to dismiss an employee for misconduct without notice, but only after what the Employment Act calls a “due inquiry”. Companies that skip that step, or run it carelessly, often find themselves defending a wrongful dismissal claim even where the misconduct was real.
This guide looks at the problem from the company’s side: what counts as misconduct, what a due inquiry involves, how long you may suspend someone while you investigate, which sanctions are available, and what happens if the employee goes to the Tripartite Alliance for Dispute Management (TADM) and the Employment Claims Tribunals (ECT). It draws on section 14 of the Employment Act 1968 and recent decisions, including the 2026 tribunal decision in JGP v JGQ [2026] SGECT 1.
Short answer
Under section 14 of the Employment Act 1968, a company may dismiss for misconduct without notice only after a due inquiry: tell the employee the allegations, let them answer, and decide with an open mind. Suspension during the inquiry is limited to one week, unless the Commissioner for Labour approves more, on at least half pay.
What counts as misconduct
Section 14(1) of the Employment Act refers to “misconduct inconsistent with the fulfilment of the express or implied conditions” of the employee’s service. The Ministry of Manpower’s guidance gives examples such as theft, dishonesty, disorderly or immoral conduct at work and insubordination. In practice, companies most often deal with:
- false expense, overtime or medical claims;
- taking or sending confidential company or customer data to personal accounts;
- accepting kickbacks from suppliers;
- harassment, violence or abusive conduct towards colleagues.
Poor performance is a different problem, managed through feedback, performance plans and, if needed, termination with notice. Mixing the two is a common source of claims.
Section 14: the company’s options
Once misconduct is established after a due inquiry, section 14(1) gives the employer a choice of responses. The table below sets them out.
| Option under s 14(1) | What it means | Practical note |
|---|---|---|
| Dismiss without notice | Employment ends immediately, with no notice period and no salary in lieu of notice | Reserve for serious misconduct; be ready to prove it |
| Instant downgrade | Move the employee to a lower position | Record the new role and pay in writing |
| Instant suspension without pay | Suspension for up to one week without salary | A penalty after the finding, separate from suspension during the inquiry |
Outstanding salary, overtime and other sums already earned up to the last day still have to be paid. A summary dismissal removes the notice entitlement, not wages already due.
What a “due inquiry” requires
The Employment Act does not prescribe a procedure, and the courts have not insisted on a formal hearing. What they have insisted on is basic fairness.
In Long Kim Wing v LTX-Credence Singapore Pte Ltd [2017] SGHC 151, the High Court held that a due inquiry is more than the employer making its own investigations. The employee must be clearly told of the allegations and the evidence, and given an opportunity to respond. Where there is no formal process, the court will look more carefully at whether the employee really had that chance. The employer in that case had proved misconduct, but had not given the employee a clear opportunity to answer some allegations, and was ordered to pay damages equal to about a week’s salary.
In JGP v JGQ [2026] SGECT 1, the tribunal described due inquiry as a modest but real standard: adequate notice of the allegations, a genuine opportunity to answer them, and open-minded consideration of the answer. It also held that an internal appeal is not part of the statutory minimum, so a skipped appeal does not by itself mean there was no due inquiry.
The process need not be perfect. In Dabbs, Matthew Edward v AAM Advisory Pte Ltd [2024] SGHC 260, the High Court found that the notice given for a disciplinary hearing was too short, but that the employee had a full opportunity to be heard at the appeal stage, so the process taken as a whole was not wrongful. The dismissal, which followed among other things the sending of confidential client data to a personal email account, was upheld.
A workable inquiry in six steps
- Secure the evidence first: emails, CCTV, access logs, claim forms and witness accounts.
- Write to the employee setting out each allegation with enough detail and documents to respond to.
- Give reasonable time to prepare, and allow a written response as well as a meeting.
- Appoint someone to hear the matter who was not the complainant or a witness and has no obvious bias.
- Keep notes of the meeting, the employee’s explanations and the evidence considered.
- Issue a written outcome that explains the findings and why the chosen sanction is appropriate.
Suspending the employee during the investigation
Section 14(8) allows the employer, for the purposes of the inquiry, to suspend the employee for up to one week, or for a longer period if the Commissioner for Labour approves it on the employer’s application. During the suspension the employer must pay at least half of the employee’s salary.
The Ministry of Manpower’s guidance states that an application to extend the suspension should be made at least three working days before the one-week suspension ends, explaining the alleged misconduct, why the inquiry needs more time, the salary to be paid and the expected end date. If the inquiry does not disclose any misconduct, section 14(9) requires the employer to restore the full salary withheld immediately.
Choosing the sanction: truth, then sufficiency
JGP v JGQ is useful for companies because it sets out how a tribunal tests a misconduct dismissal. The employee had been dismissed for allegedly dishonest medical claims. The tribunal asked two questions:
- Truth: were the allegations proved, including any mental element the employer relied on, such as dishonesty?
- Sufficiency: did the facts proved justify dismissal rather than a lesser penalty?
Dishonesty was not proved; only negligent reliance on an informal practice was. Colleagues in comparable situations had received warnings or bonus reductions. The tribunal treated that consistency point as a cross-check on proportionality and found the dismissal to be without just cause. The lesson for employers is to charge what the evidence supports. Alleging fraud when the evidence shows carelessness can turn a defensible warning into a losing dismissal.
Dismissing with notice does not avoid the inquiry
Some employers terminate with notice while privately relying on misconduct. In JGP v JGQ the tribunal said the due inquiry requirement attaches to the ground for dismissal (misconduct), not to the way the contract is ended. If misconduct is the real reason, the company should expect to show that it was investigated fairly, whatever the termination letter says.
When the employee claims wrongful dismissal
Section 14(2) of the Employment Act allows a relevant employee who considers that he or she was dismissed without just cause or excuse to claim reinstatement or compensation under the Employment Claims Act 2016. The Ministry of Manpower states that the claim should be lodged with TADM within one month after the last day of employment. Unresolved claims are referred to the ECT.
| Point | Position |
|---|---|
| Who may claim | Non-managerial employees; managers and executives dismissed without notice and without salary in lieu; managers and executives dismissed with notice or salary in lieu if they served at least six months (s 14(2A)) |
| First stop | Mediation at TADM, which issues a claim referral certificate if the dispute is not resolved |
| ECT claim limit | S$20,000, or S$30,000 if the claim went through tripartite or union-assisted mediation |
| Burden of proof | Dismissal without notice: the employer must show it was not wrongful. Dismissal with notice: the employee must show it was wrongful (per MOM guidance) |
| Remedies | Reinstatement with lost wages, or compensation (s 14(3)) |
In JGP v JGQ the tribunal awarded three months’ salary for loss of income and a further sum for harm under the Employment Claims Regulations, reduced to reflect the employee’s own carelessness. The tribunal also held that the Tripartite Guidelines on Wrongful Dismissal are guidance to be taken into account, but do not narrow the statutory inquiry. Our guide to the Employment Claims Tribunals and TADM covers the procedure in more detail, and our note on preparing an evidence bundle for TADM mediation explains what to gather.
Senior employees whose claims exceed the tribunal’s limits may sue in court for breach of contract instead. There, the employment contract, any incorporated handbook and the implied duty of mutual trust and confidence recognised in Prashant Mudgal v SAP Asia become central.
Contract terms and handbooks
A company’s own documents can raise the bar above the statutory minimum. If the contract or a handbook incorporated into it promises a particular disciplinary procedure, a court may expect that procedure to be followed. In Dabbs, the company’s disciplinary guidelines were not incorporated into the contract and were used only to help interpret “gross misconduct”. Review your employment contract clauses so that the summary termination clause, confidentiality obligations and disciplinary process are clear and consistent.
What the company should do
- Board minutes: where the employee is senior, or is also a director or officer, record the board’s decision to commence the inquiry, who will hear it, and the final outcome. For a director-employee, dismissal from employment does not remove the person as a director; that requires the separate process under the constitution and the Companies Act.
- Registers: if the employee held an office such as director or company secretary and that office ends, update the company’s registers and notify ACRA of the cessation within the statutory time limit. Remove bank signing authority and system access promptly.
- ACRA filings: lodge any change in officers through BizFile and check the business profile afterwards.
- Accounts: pay final salary and any sums already earned, make CPF contributions on the final wages, and record any recovery claim against the employee (for example, for misappropriated funds) as a receivable only if it is supported. Keep the inquiry file with the payroll records.
- Work passes and tax: for a foreign employee, cancel the work pass and handle IRAS tax clearance for non-citizen employees.
Where the misconduct involves bribes from suppliers, see also our guide on secret commissions and recovering a kickback. External guidance from the Ministry of Manpower on termination due to misconduct and the full text of section 14 of the Employment Act are worth reading alongside this article.
Frequently asked questions
Must a company hold a formal hearing before dismissing for misconduct?
No particular format is required. The employee must be told the allegations and evidence clearly, have a real opportunity to respond, and the decision-maker must consider that response with an open mind. A short meeting backed by written allegations and a written response can be enough.
Can we suspend an employee without pay while we investigate?
Not entirely. During the inquiry the company must pay at least half the salary, and suspension is limited to one week unless the Commissioner for Labour approves a longer period. If no misconduct is found, the withheld salary must be restored in full.
Do we still pay salary in lieu of notice after a summary dismissal?
If misconduct is established after a due inquiry and the company dismisses without notice under section 14(1), no notice or salary in lieu is payable. Salary and other sums already earned up to the last day remain payable.
How long does a dismissed employee have to make a claim?
The Ministry of Manpower states that a wrongful dismissal claim should be filed with TADM within one month after the last day of employment. Claims that are not settled at mediation can be referred to the Employment Claims Tribunals.
Does the Employment Act apply to managers and executives?
Yes, section 14 applies to them, although the right to claim wrongful dismissal at the tribunal has a six-month service requirement for managers and executives dismissed with notice or salary in lieu. Senior staff may also have contractual claims in court.
Need a lawyer?
This article is general information about Singapore law for companies, directors and shareholders. It is not legal advice, and it does not take account of your circumstances. Raffles Corporate Services Pte Ltd is a corporate service provider, not a law practice, and does not give legal advice.
If your company is investigating an employee for misconduct or has received a wrongful dismissal claim, we can introduce you to an experienced Singapore law firm that handles employment disputes and disciplinary inquiries. Tell us briefly what has happened and we will connect you.
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Conclusion
A misconduct dismissal is won or lost on process as much as on facts. Gather the evidence, put the allegations clearly to the employee, listen to the answer, choose a sanction that matches what was actually proved, and keep a written record of each step. Companies that do this can act firmly against serious misconduct with far less risk of paying compensation later. For help with the board resolutions, register updates and ACRA filings that follow, speak to Raffles Corporate Services.
The Editorial Team, Raffles Corporate Services