In August 2014, the Court of Appeal in Singapore ruled that
employees who are forced to quit after their employer makes
"life unbearable" (namely, in a "constructive
dismissal" situation) should not expect to be awarded any
compensation other than that contemplated by their contracts of
employment. In order to receive additional damages, employees must
show proof of actual loss stemming from their dismissal.
The Court of Appeal made this ruling in an appeal against a High
Court decision relating to the dismissal of former Robinsons
assistant general manager of corporate sales and cards, Lawrence
Wee. Mr. Wee alleged that the company persecuted him because of his
homosexuality and requested compensation for loss of future
earnings and additional damages, even though he was paid four
months' salary in lieu of notice plus cash for unconsumed
leave, which was more than the two months' notice (or payment
in lieu) provided for in his contract. The Court of Appeal rejected
the claim and ordered Mr. Wee to pay S$20,000 in legal costs to
Robinsons.
The ruling, however, did leave open the possibility of damages
being claimed if the constructive dismissal results in the
employee's future employment prospects being impaired.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.