01⬡ JUDGMENT
SGECT holds in [2026] SGECT 17 that employers cannot deduct salary in lieu of notice from earned salary unless the deduction is expressly authorised under the Employment Act 1968.
RPL sought to deduct salary in lieu of notice from Mr C's April 2026 earnings, claiming he resigned without notice. The tribunal held that earned salary remains payable regardless of notice breaches, and that Section 23(3) of the Employment Act 1968 only permits deductions for liability founded on Section 11(1) (termination without notice), not Section 16 (breaking a contract), with RPL failing to prove termination under Section 11(1).
Why it mattersEmployers cannot unilaterally set off notice period liabilities against earned wages; statutory authorisation under the Employment Act 1968 is strictly required and narrowly construed.
JUDICIARY
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