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Can an employer let an employee go at the end of their probation period without giving contractual notice or salary in lieu? The Singapore High Court in Nanyang Law LLC v Ghui Meng Yang [2026] SGHC 171 ruled that a probation clause does not automatically turn an employment agreement into a fixed-term contract. Here is what employers and employees need to know about notice periods and probation.
What the High Court Decided
In Singapore employment law, a probation period does not automatically make an employment contract a fixed-term contract under Section 9(1) of the Employment Act 1968. Unless the employment agreement explicitly states that the contract ends automatically on the final day of probation without notice, employers must still provide contractual notice or pay salary in lieu of notice when deciding not to confirm an employee.
The General Division of the High Court established this principle in Nanyang Law LLC v Ghui Meng Yang [2026] SGHC 171, dismissing an employer’s appeal against an Employment Claims Tribunal (ECT) award.
Background of the Dispute
The respondent, Mr Ghui Meng Yang, joined Nanyang Law LLC as a Supporting Officer under an employment agreement containing a three-month probation clause:
The Probation Term: The clause stated that new recruits would undergo three months of probation to assess job suitability.
Termination Clause during Probation: Either party could terminate the contract during the probation period by giving one month’s prior written notice without providing reasons.
The Non-Confirmation: Two days before the end of the three-month period (on 7 July 2023), the employer issued a letter titled “Expiry of Your Probation Period,” notifying Mr Ghui that his service would end on 9 July 2023.
The employer argued that the probation period was a contract for a specified period of time under Section 9(1) of the Employment Act 1968, which simply expired automatically upon non-confirmation, meaning no notice period or salary in lieu of notice was required.
Mr Ghui filed a claim with the Employment Claims Tribunal for one month’s salary in lieu of notice. The Tribunal Magistrate ruled in his favour (pro-rated to the remaining working days in the notice period), and the employer appealed to the High Court.
The Legal Question: Is Probation a Fixed-Term Contract?
The primary question before the High Court was whether a contract of service that includes a probation period is a contract for a “specified period of time” under Section 9(1) of the Employment Act 1968.
Under Section 9 of the Employment Act 1968:
- Section 9(1): A contract of service for a specified piece of work or a specified period of time terminates when the work is completed or the period expires.
- Section 9(2): A contract of service for an unspecified period of time runs until terminated by either party in accordance with the Act.
Key Takeaways from the High Court Ruling
The Court held that the presence of a probation clause does not automatically convert a general contract of employment into a fixed-term contract.
1. Contract Terms Take Precedence
The court must interpret the specific wording of the entire employment contract rather than apply a blanket rule. In this case:
- The employment agreement provided for annual salary reviews and incremental annual leave tiers over multiple years of service.
- These long-term terms indicated that the parties entered into a single, ongoing contract of indefinite duration with an initial probation mechanism, rather than a standalone three-month fixed contract.
2. Notice Obligations Remain Active
The probation clause specifically provided that either party could terminate by giving one month’s written notice. Because the employer issued the non-confirmation letter on 7 July 2023 to end the employment on 9 July 2023, it failed to serve the required one-month notice period.
3. Clear Drafting Is Required for Automatic Expiry
If an employer intends for an employment relationship to automatically cease at the end of probation without notice if no confirmation letter is issued, that mechanism must be explicitly and clearly drafted into the employment agreement.
Practical Implications for Singapore Employers and Employees
For Employers
- Review probation clauses: Ensure employment contracts specify what happens if an employee is not confirmed. If you intend for employment to lapse automatically at the end of the probation period without notice, state this in unambiguous contractual terms.
- Track probation milestones early: If your contract requires a one-month notice period during probation, issue non-confirmation notices at least one full month before the scheduled probation end date to avoid paying salary in lieu of notice.
- Single vs fixed-term distinction: Understand that standard letters of appointment for permanent positions containing probation clauses are treated as ongoing contracts of service, not fixed-term arrangements.
For Employees
- Check your notice entitlements: If you are informed close to or at the end of your probation that you will not be confirmed, check your contract’s termination clause. You may be entitled to the full contractual notice period or salary in lieu.
- Tribunal recourse: Legitimate claims for unpaid salary in lieu of notice can be brought before the Tripartite Alliance for Dispute Management (TADM) and subsequently the Employment Claims Tribunal (ECT).
Frequently Asked Questions
Does an employer have to give notice if an employee fails probation in Singapore?
Yes, unless the employment contract explicitly states that employment automatically expires at the end of the probation period without notice. If the contract provides a notice period for termination during probation, that notice (or salary in lieu) must be provided.
Is a probation period considered a fixed-term contract under Section 9(1) of the Employment Act?
No. The High Court clarified that a probation clause does not automatically make the arrangement a fixed-term contract. Unless the contract is drafted as a standalone fixed-term agreement, it remains an ongoing contract of service of unspecified duration under Section 9(2).
Can an employer pay salary in lieu of notice during probation?
Yes. If an employer prefers not to have the employee serve out the contractual notice period during or at the end of probation, the employer can pay salary in lieu of the remaining notice period.
What should employers do if they decide not to confirm an employee?
Employers should calculate notice timelines in advance. If the contract requires one month’s notice, the non-confirmation notice should be served at least one full month before the scheduled end date of the probation period to avoid incurring liability for salary in lieu of notice.
This article is provided for general educational and informational purposes only and does not constitute formal legal advice. If you require legal advice regarding employment contracts, termination disputes, or statutory compliance under the Employment Act, please consult a qualified Singapore advocate and solicitor.