Personal relationship between worker and manager complicates salary reduction and termination case
A district court in Singapore recently dealt with a contract breach claim that highlighted how personal relationships between employees and managers can complicate employment decisions and contract enforcement.
The case involved a business development director who challenged his employer's unilateral salary reductions and wrongful termination, with the court examining how the parties' romantic relationship influenced workplace dynamics.
The worker argued that his employment contract guaranteed a minimum 12-month term and that salary reductions from $12,000 to $6,000 monthly required his written consent.
The employer claimed the worker had breached contract terms through excessive absences and that salary adjustments were justified business decisions based on project requirements.
The case involved a wholesale medical equipment company where the worker had been offered the business development director position under a contract dated 8 August 2022.
The managing director was the company's sole shareholder and director. The worker and managing director had met during an executive MBA course and "started dating in mid-June 2022," according to the court decision.
At the managing director's invitation, the worker "moved in to live with [the managing director] and her son sometime in August 2022."
This living arrangement...
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