Dismissing staff on probation: What employers need to know

Subjective comments such as “not committed enough” or “not the right fit” may be difficult to defend if the expected standards were never clearly explained, said Yvonne Tan, director of recruitment agency Dynamic Human Capital, a subsidiary of manpower consultancy Elitez Group.

She added that written records of performance discussions, together with a fair process, will help protect the company if the dismissal is later challenged by affected employees. This entails providing examples of missed expectations, detailing the support or mentorship provided, and allowing employees to respond before a final decision is made.

In addition to keeping proper documentation, Mendon said, companies need to be “very careful” about how this is communicated to the employee.

For example, he recommended flagging performance issues early – say, in the first month – addressing them quickly, documenting the feedback, being clear on what needs to be improved, and setting a date to review progress.

Who can file the claim

Not every employee on probation, however, is eligible to bring a wrongful dismissal claim. Eligibility depends on factors such as an employee’s role and length of service.

Under the Employment Act, managers and executives must complete at least six months of continuous service to qualify for wrongful dismissal claims, unless they are let go without notice and without salary in lieu of notice.

This group includes employees with executive and supervisory responsibilities, such as formulating business strategies and managing operations, as well as professionals with specialised skills, such as advocates and solicitors, and chartered accountants.

Non-managers and non-executives are not subject to a minimum service requirement.

In the case of the audit manager, she was eligible to file a wrongful dismissal claim because she had worked for the employer for six months and 10 days.

The Singapore National Employers Federation (SNEF) said the six-month threshold was agreed by the tripartite partners because “managerial and executive roles often require a longer period for employers to assess an employee’s suitability, job fit and performance before making a decision on continued employment”.

The six-month threshold has also proven decisive in another ruling published on Aug 3. In this case, a software manager failed in his wrongful dismissal claim after the court found that he was not a “relevant employee”, for he had served for only five months and 27 days, and was paid salary in lieu of notice.

However, Yvonne Tan of Dynamic Human Capital cautioned that the six-month rule is “not a free pass” for employers to terminate employees before the six-month mark.

She said: “The decision should be based on legitimate reasons, supported by proper documentation, and not made simply to avoid potential claims.”

When to extend probation

When employers need more time to assess an employee, extending the probation period may be a better option than making a premature decision, HR professionals said.

This may be appropriate when onboarding has been disrupted or when an employee is showing signs of improvement, said Tan.

“It should not be used simply to delay a difficult decision. Any extension should clearly state the duration, reasons, improvement targets and final review date.”

Mendon said an extension may be warranted if performance concerns have not been communicated earlier. “Sometimes, performance issues surface only later, especially in the Singapore ecosystem, where many roles have a regional scope, and managers and stakeholders travel frequently.”

Emplifi’s Juliet Tan suggested extending probation by one to three months with clear, written 30-day milestones.

However, if the issue involves “fundamental behavioural or cultural misalignment”, extending probation merely delays the inevitable, she said.

“In these cases, initiating a prompt contractual exit while honouring all notice terms is fairer to both parties.”

More than just a trial period for employers, probation also allows employees to assess whether the role and organisation are the right fit for them, HR professionals said.

SNEF said: “Whether it is during or beyond the probationary period, either party may also end the employment relationship in accordance with the terms of the employment contract and applicable employment laws, without providing any reason.”