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Termination with notice

If your contract specifies a notice period, you must either serve the notice when you resign or pay salary in lieu. Notice can be waived by mutual consent between you and your employer.

If you want to terminate the employment contract, you must give notice to the other party in writing in the form of a letter of termination or resignation.

The notice period is the same for the employer and employee. It should be according to the written contract, or verbal agreement, if there is no written contract.

If you and your employer did not previously agree on a notice period, the following applies:

Length of service Notice period
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 and above 4 weeks

Note: The notice period includes the day on which the notice is given.

Waiver of notice period

Both parties may also agree to waive the notice period by mutual consent. Such a waiver should be done in writing.

CPF contribution during the notice period

You and your employer must make CPF contributions for your salary earned during the notice period, while you are still considered an employee of the company.

However, CPF contributions are not required for salary in lieu of notice (notice pay).

Leave and other situations during notice

If you decide to take leave while serving your notice, take note of the following guidelines:

Taking annual leave

Your employer cannot force you to go on leave during the period of notice, unless you consent.

You can encash your unconsumed annual leave if you are covered under Part IV of the Employment Act.

Using annual leave to offset notice

You can use your annual leave to offset the notice period in order to bring forward your last day of employment. In this case:

  • You would only be paid up to your last day of work.
  • The annual leave used to offset the notice will not be paid.
  • After your last day, you can start work immediately with your new company.

However, using annual leave to offset the notice period is not the same as taking approved leave during the notice period.

If you apply for annual leave during your notice period, and your employer approves it:

  • You will be paid for the full notice period.
  • You are considered an employee until the last day.
  • You cannot join a new company until the notice period is over.

Taking sick leave

If you are covered by the Employment Act, and you take sick leave (paid or unpaid) during the notice period, it is treated as part of the notice period. Your employer cannot extend your notice period or claim for any short notice from you.

Going on reservist training

Reservist training is not considered as part of the notice period, so it cannot be used to offset the notice period.

Starting new employment while serving notice

The employee serving notice is still considered an employee of his current employer.

You should check with your existing employer whether you can start work with your new employer during your notice period.

Last Updated: 21 March 2017