EMPLOYMENT LAW – CONSTRUCTIVE DISMISSAL

Lim joined this company and started with a six months probation. The company later issued him a letter extending his probation for another five months. In the employment contract, it was written that the company would not tolerate any conduct that is likely to damage or destroy the relationship and trust between the employees and the company.

During his probation, he was humiliated in the group chat and was threatened to be sacked by the Head of the Department on several occasions. There were audio recordings provided by Lim to show that the superior taunted and berated him for failing to obtain the superior’s permission before submitting the stock order.

Recently, he has not been receiving his full salary and other allowances agreed under the employment contract. He left the company. He is now claiming that he was constructively dismissed without a just excuse.

Q: What is constructive dismissal?

A: The employee is left with no choice but to resign from the company due to the employer’s actions that has breached the basic terms of the employment contract. The employee needs to prove that there is a breach (in this case, Lim). The breach must be substantial.

Q: What needs to be proved to establish constructive dismissal?

A: To prove that there is constructive dismissal, Lim needs to prove that:

  • There is breach of basic terms of the employment contract.
  • The employee left due to the breach and not for any other reasons.
  • There is no delay.

Each case will be decided based on its own facts.

Q: In this case, is there constructive dismissal?

A: There is constructive dismissal as there is a fundamental breach of the employment contract. He was not paid the full salary and other allowances agreed. He had left the company due to the humiliation and verbal attack by his Head of Department.

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