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Oral Answer by Senior Minister of State for Manpower Dr Koh Poh Koon to PQ on Wrongful Dismissal Claims

Employment practices

NOTICE PAPER NO. 1026 OF 2022 FOR A SITTING ON OR AFTER 4 MARCH 2022
QUESTION NO. 2617 FOR ORAL ANSWER

MP: Mr Leon Perera

To ask the Minister for Manpower for wrongful dismissal claims lodged with the Tripartite Alliance for Dispute Management (TADM) since April 2019 (a) how many mediation requests have been refused by TADM; and (b) what is the proportion of these requests which have been refused; (c) what are the typical reasons for such refusal; (d) whether TADM mediators assess and advise disputants on the validity of their claims; (e) if so, what laws empower them to do so; and (f) what qualifications are TADM mediators required to have.

Answer

  1. Under the Employment Claims Act (ECA), wrongful dismissal claims must be filed within one month from the last day of employment. They must then undergo mediation at the Tripartite Alliance for Dispute Management (TADM). The intention is for mediation to be the first line of response, failing which claims can be adjudicated at the Employment Claims Tribunal (ECT).
  2. Each year, about 60 employees or 6% of those seeking TADM mediation services for wrongful dismissal disputes exceeded the time limit for filing. While such claims are no longer eligible for mediation under the ECA, TADM still assists both parties to resolve the disputes if they were prepared to settle the matter amicably.
  3. For claims within the time limit, TADM assesses the facts of each claim based on the Tripartite Guidelines on Wrongful Dismissal. If TADM assesses the case to be unsubstantiated, it explains to the claimant the reasons, and does not continue with the mediation process. Usually, this is because the facts as reported by the claimant showed that the employer had contractually terminated the employment in accordance with the Employment Act or the employment contract, and the employee could not cite any other facts suggesting the termination was wrongful.
  4. Some claimants withdraw their case at this stage, after hearing TADM’s assessment. Others continue their case at the ECT. TADM’s approach of referring cases to ECT without mediation reduces potential burden on employers, who should not have to attend mediation for unsubstantiated claims. It also does not affect claimants’ rights in any way. About 130 cases each year, or 12% of all wrongful dismissal claims, were referred to the ECT in this way. The outcomes at the ECT generally validate our mediators’ assessment. A large majority of the cases were either dismissed by the Magistrate or withdrawn by the claimants at the ECT – an indication that the process is working well as intended.
  5. In addition to robust in-house training on the law and the dispute resolution process, all TADM mediators undergo training by the Singapore Mediation Centre. Many of TADM’s mediators have prior HR experience from varied sectors or are previously employed in the former Labour Court. TADM mediators also participate in continuing education, including studying and learning from the grounds of decisions issued by the ECT. This fosters a culture of continuous learning and ensures continuous alignment with the Courts in facilitating a fair outcome for both claimants and respondents.