Singapore court ruling clarifies when employees can legally end employment early

18 Apr 2025

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A Magistrates Court in Singapore recently dealt with an employment dispute that examined whether an employee could resign from a fixed-term contract without paying liquidated damages. The case hinged on a contract clause that allowed early termination only if an "irresistible factor" existed.

The worker argued that his major depressive disorder qualified as such an irresistible factor, making him unfit to work and entitling him to end his contract prematurely. He claimed his medical condition had developed around the time of his resignation and prevented him from fulfilling his contractual obligations.

The employer disputed this claim, arguing the worker had resigned to pursue further studies rather than due to any medical condition. They sought three months' salary as liquidated damages for the early termination, as specified in the employment contract.

Understanding fixed-term employment terms

The worker had been employed as a Chinese language tutor at an education centre since January 2021. In November 2021, he signed a second employment contract for a fixed term ending in November 2022. However, he resigned in February 2022, approximately nine months before the end date.

The contract contained a specific clause stating the worker "cannot resign for any reason unless there is an irresistible factor (such as the employee is sick and provides a medical certificate that...

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