When Resignation Isn’t Truly Voluntary

Resignation is typically seen as a voluntary act—one an employee initiates to take up better job opportunities or to deal with personal circumstances. However, in certain situations, an employee may feel compelled to resign because of an intolerable or hostile work environment or unbearable work conditions. 

This could mean having to face unreasonable treatment, harassment, bullying or discrimination in a hostile work environment, or being pressured to accept significant changes to fundamental or essential terms of their employment contract such that the job that they had agreed to perform has been changed materially (for example, expanded scope of work, reduced salary and change in working conditions). 

A resignation which occurs in these circumstances cannot be said to be voluntary, and it is referred to as “constructive dismissal.” 

The concept of “constructive dismissal” is grounded in the principle that an employer must not fundamentally breach the terms of the employment agreement. When that happens, the law may consider that the employer has effectively dismissed the employee without formally doing so.

 To succeed in a claim for constructive dismissal, the employee must establish that the employer had committed a fundamental breach of contract amounting to a repudiation (i.e. a repudiatory breach) of the employment agreement. 

It is not enough for the situation to be unpleasant; the actions or omissions by the employer must amount to a serious contractual violation which is sufficient to justify immediate resignation. Further, the employee must have accepted the repudiatory breach, and the said breach must have caused the employee to leave his or her employment.

It is important to distinguish between constructive dismissal and other forms of wrongful dismissal. Dismissing an employee without just or sufficient cause is wrongful. The Tripartite Guidelines on Wrongful Dismissal provides illustrations to guide employers and employees alike on what constitutes dismissals which are wrongful and not wrongful. Constructive dismissal is unique in that the employer doesn’t issue the termination—the employee does. Yet a tribunal or Court will treat it as a dismissal if the conditions surrounding the resignation were legally unacceptable. 

Legal Remedies Available

If an employee successfully proves constructive dismissal, they can seek compensation (which requires an assessment of damages) and even reinstatement in the employee’s former employment. However, reinstatement only occurs in rare and exceptional cases, because by the time legal proceedings are commenced, the working relationship between the employee and his or her former employer would have broken down already.

Filing a claim with the Tripartite Alliance for Dispute Management (“TADM”) is often the first step for employees pursuing a claim of constructive dismissal. A professional mediator from TADM will facilitate the mediation between the employee and employer. If the dispute remains unresolved, the employee can choose to escalate the case to the Employment Claims Tribunal (“ECT”).

A party dissatisfied with the decision of the ECT may appeal against the decision / order to the General Division of the High Court under specific circumstances. 

Parties cannot be represented by lawyers in the TADM mediation sessions, or in the ECT proceedings. However, they can seek legal advice on the procedure and the material to be submitted on their behalf for the mediation and to the tribunal. There are also specific timeframes when employees need to file their claims, so it is highly recommended that employees seek advice as early as possible after the last day of employment (or even before that, if possible). 

If your claim exceeds S$20,000 (or S$30,000 if you have gone through TADM mediation), or have a claim against a party who has a registered office or place of business outside Singapore, your claim cannot be brought to the ECT. Professional legal advice is strongly recommended, especially in cases involving senior roles or complex contractual arrangements which would exceed the jurisdiction of the ECT.

Practical Tips for Employers to Avoid Constructive Dismissal Claims

Employees who suspect they are being subjected to involuntary resignation, and who wish to pursue a claim in constructive dismissal should not rush to resign, without first gathering clear documentation which help to show that it is the employer’s conduct and actions that led to the resignation. This includes all emails, or other written correspondence via WhatsApp or other messaging platforms and applications which may support such a claim. Keeping a contemporaneous record of incidents that have contributed to the employer’s breach of contract is also critical to building a strong claim.

Before taking formal action, it may be beneficial to raise concerns with HR or management in writing. This demonstrates that the employee attempted to resolve the issue internally, which can be advantageous should the matter proceed to a tribunal or court.

Seeking legal advice early allows the employee to assess whether the employer’s conduct truly amounts to a fundamental breach. It also enables strategic decision-making about how and when to resign to preserve potential claims. A delay in resignation could be interpreted as acceptance of the new terms or conditions, thereby weakening the case for constructive dismissal.

From the employer’s perspective, in order to minimise the risk of facing claims in either wrongful or constructive dismissal, compliance with the Tripartite Guidelines  on Fair Employment Practices, addressing employees concerns in a genuine manner through proper channels and reviewing and improving HR policies and dismissal procedures are recommended. Employers who prioritize these responsibilities are better positioned to defend against claims that could arise from perceived breaches of contract.

Proactive measures—such as providing clear, written communication during workplace restructuring, issuing formal notices for changes in job scope or performance expectations, and following structured conflict resolution protocols—are essential. Maintaining detailed records and aligning all actions with established HR policies and employment law compliance standards strengthens an employer’s position should any dispute escalate to mediation or litigation. 

Whether you are an employee faced with a potential dispute with your employer, or if you are a business seeking guidance, we have experienced employment lawyers who can offer you valuable assistance.