An employee brought a Singapore High Court (SGHC) claim against his former employer, alleging, amongst other things, that his company had failed to inform him of the eventual outcome of the investigation against him for placing himself in a position of conflicts of interests.

After the investigation, he was dismissed with notice but without any justification.

The High Court dismissed the claim and the employee appealed the decision.

The Appellate Division, affirming the lower court’s decision and dismissed the claims, based on these main reasons:

• The employee had not suffered any loss, as he had already received a full salary for the entire suspension period and salary in lieu of notice. Moreover, he had no right to an indemnity for the dismissal, as in Singapore there is no limit to dismissal with notice and such a limitation of an employer’s rights would be inconsistent with parties’ freedom of contract and to exit contracts.
• He had not suffered losses as a result of the company’s failure to protect the confidentiality of the investigation. The doctrine of “res ipsa loquitur” he relied on, according to the Court, is limited to accident or injury cases and did not extend to a leak of confidential information.

Employers should consider that, even if the SGHC(A) confirmed that there is no strict legal restriction over an employer’s right to terminate an employee without cause, it is important to guarantee transparency during investigations and to share with employees their outcomes.

The decision also addressed the implied term of mutual trust and confidence, that requires the employer and employee not to conduct themselves in a manner calculated and likely to destroy or seriously damage the relationship of confidence and trust between them.

In Singapore, several High Court decisions appeared to recognise the existence of the duty, but, in this case, the decision opined, in obiter that the institute is not clearly settled in Singapore.