Reviewing Employment Act to Clarify Notice Requirements for Employees Terminated at End of Probation

Mr Melvin Yong Yik Chye asked the Acting Minister for Manpower following a recent observation by the General Division of the High Court that the Employment Act is silent on what constitutes a contract of service for a specified period, whether the Ministry intends to review the Act to clarify notice requirements for employees whose employment is terminated at the end of probation.

The High Court judgment referred to by the Member states that an employment contract with a probation period is not automatically a fixed-term contract that expires at the end of the probation period. Instead, it depends on the specific provisions within the contract. This is consistent with the Employment Act.

The Employment Act does not define what constitutes a fixed-term contract, and this is intentional. The Act recognises that employment relationships take varied forms, and whether a contract expires at a fixed date or continues indefinitely is a matter for the contracting parties to determine. The High Court's judgment is therefore aligned with the existing legislative intent.

Both employers and employees are required to observe the employment contractual provisions on the notice of termination. Where the contract does not contain any specific provisions, Section 10 of the Employment Act sets out minimum notice requirements for termination, and these apply to both fixed-term and unspecified-term contracts, including during the probation period.

The Ministry of Manpower will continue to work with tripartite partners to review our employment regulations to ensure they are fit-for-purpose.