Even well-run companies occasionally face an employee dispute — a salary claim, a bonus disagreement, or an allegation of unfair dismissal. In Singapore, most of these disputes do not go straight to court. They flow through a two-stage system built for speed and low cost: mediation at the Tripartite Alliance for Dispute Management (TADM), followed, if unresolved, by adjudication at the Employment Claims Tribunals (ECT). For employers, understanding how this system works is the difference between resolving a matter quickly and being caught off guard by a claim. This guide walks through the process from the employer’s perspective.
What the ECT and TADM are
The Employment Claims Tribunals are part of the State Courts and hear statutory salary-related and wrongful-dismissal claims between employers and employees. TADM is the body that mediates employment disputes before they reach the ECT. The system was introduced under the Employment Claims Act to give employees an affordable, accessible forum — and to give employers a structured, proportionate way to resolve disputes without full-blown litigation.
What claims the ECT can hear
The ECT’s jurisdiction covers two broad categories:
Salary-related statutory claims
These include unpaid salary, overtime pay, unpaid bonuses or commissions that are contractual, salary in lieu of notice, and other statutory or contractual money claims arising from the employment relationship. Both employees covered by the Employment Act and, for salary claims, many who fall outside it can bring such claims, subject to the rules.
Wrongful dismissal claims
Since 1 April 2019, the ECT also hears wrongful dismissal claims — an employee dismissed without just cause or excuse may seek redress, and the tribunal can order reinstatement or compensation. This is a significant exposure for employers, because a poorly handled termination can convert into a wrongful-dismissal claim.
The claim limits — and why mediation matters
The ECT operates with a monetary cap, and the cap is directly linked to whether the parties mediated. The tribunal can hear claims up to $20,000, and this rises to $30,000 where the dispute went through TADM mediation (or was mediated with the assistance of a recognised trade union). That higher limit is a deliberate incentive to mediate. For an employer, it is a practical reason to take the TADM stage seriously rather than treating it as a formality.
The process, step by step
1. The claim is lodged and TADM mediation is compulsory
An employee begins by lodging a claim with TADM. Mediation at TADM is a compulsory first step — a claim generally cannot proceed to the ECT until it has been mediated. As the employer, you will be notified and required to attend mediation. Coming prepared, with payroll records, the employment contract and a clear account of the facts, gives you the best chance of a sensible settlement.
2. Mediation outcome
If mediation succeeds, the settlement can be recorded and, where registered, becomes enforceable. If it fails, TADM issues the relevant documentation that allows the claimant to file at the ECT.
3. Filing and hearing at the ECT
Unresolved claims proceed to the ECT, where a tribunal magistrate hears the matter. Proceedings are designed to be simpler and quicker than ordinary civil litigation, and legal representation is generally not allowed, keeping costs down for both sides. The tribunal issues an order, which can be enforced like a court order if not complied with.
Time limits employers should know
Claims are subject to filing deadlines. Broadly, a current or recently departed employee must bring a salary claim within a limited window after the salary becomes due or after employment ends, and a wrongful dismissal claim must be lodged with TADM within a short period after the last day of employment. Because these windows are tight, an employer facing a potential claim should not assume the clock will run out — and should keep clean records, since the burden of showing that salary was paid or that a dismissal had just cause often falls on the employer.
How employers reduce their exposure
Most ECT claims are preventable. The recurring themes are unclear contracts, sloppy payroll and badly handled exits. Employers can cut their risk substantially by:
Getting the paperwork right
Issue clear employment contracts and key employment terms, and keep accurate payroll and CPF records. Our payroll and CPF guide sets out the record-keeping that heads off most salary disputes.
Handling terminations fairly
Follow a fair, documented process when dismissing or making a role redundant. The steps in our guide to retrenching employees responsibly and fairly reduce the risk of a wrongful-dismissal claim. Bear in mind, too, that the forthcoming workplace-fairness and fair-consideration obligations add a further reason to base people decisions on documented, objective grounds.
Which employees can bring a claim
Coverage differs by claim type, and employers should understand the split. For salary-related claims, the ECT is open to a broad range of employees, including many professionals, managers and executives who fall outside the core protections of the Employment Act, because the salary-claim jurisdiction is not limited to Employment Act employees in the same way. For wrongful dismissal claims, coverage aligns with the statutory framework that gives employees protection against dismissal without just cause or excuse. Certain individuals — for example, genuine independent contractors or, separately, platform workers under their own distinct regime — are not “employees” for these purposes and generally fall outside ECT jurisdiction. When a dispute arrives, one of the first questions is therefore whether the claimant is an employee at all, and in what capacity.
Enforcing and appealing an ECT order
An ECT order is binding. If the employer does not comply, the successful claimant can enforce it in the same way as a judgment of the court, including through the usual enforcement mechanisms for unpaid money orders. That is why treating an adverse order as optional is a serious mistake — non-payment simply adds enforcement costs on top of the original sum. Appeal rights from the ECT are limited and typically confined to questions of law, with leave requirements, which reflects the tribunal’s design as a quick, final-instance forum for lower-value disputes. In practice, the employer’s best opportunities to shape the outcome are at the TADM mediation and the tribunal hearing itself — not afterwards. Keeping thorough payroll records and a clear paper trail for any termination is what wins those stages.
Conclusion
The TADM-and-ECT system gives Singapore a fast, low-cost route to resolve employment disputes — but it puts the onus on employers to engage properly, mediate in good faith and keep the records that prove their position. Attend the TADM mediation prepared, understand that settling can unlock the higher $30,000 limit if the matter proceeds, and, above all, prevent claims at source with clear contracts, clean payroll and fair terminations. Guidance on the dispute-resolution framework is published by the Ministry of Manpower, and the ECT process is set out by the Singapore Courts.
— The Editorial Team, Raffles Corporate Services