When a PIP looks fair but is not, a court may call it out

SAP Asia breached its duty of trust to a terminated employee, a Singapore court ruled, putting HR processes and Business Partners on notice.

On January 21, 2026, Singapore's High Court delivered a judgment that settles a long-debated employment law question, and the answer directly affects how HR teams manage terminations. The case, Prashant Mudgal v SAP Asia Pte Ltd, unfolded like a familiar HR scenario: cross-functional tensions, hostile emails, a Performance Improvement Plan, and a termination.

Prashant Mudgal joined SAP Asia in August 2015 as a Solution Sales Engagement Manager Expert, rising to Head of Services Sales for the Ariba line of business in the Asia Pacific and Japan region. His working relationship with the head of the services delivery team fell apart across 2018, playing out through a series of internal emails that management considered aggressive and unprofessional. After refusing to write a formal apology to a colleague as directed by his manager, he was placed on a 45-day Performance Improvement Plan in March 2019. The PIP closed in May 2019. His employment was terminated by notice on November 21, 2019.

Mudgal sued for close to S$5 million, claiming conspiracy and breach of implied terms in his employment agreement. The conspiracy claims were dismissed. But on the key question of whether an employer owes employees a duty of mutual trust and confidence, Justice Dedar Singh Gill ruled in Mudgal's...

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