[AI] Navigating the Performance Improvement Plan (PIP) in Singapore: A Guide for Employers and Employees
The Performance Improvement Plan (PIP) is a common corporate tool designed to address employee underperformance. In Singapore’s evolving legal landscape , the rules surrounding PIPs have shifted dramatically following recent milestone rulings from the Singapore High Court . [ 1 , 2 , 3 , 4 , 5 , 6 ] Once viewed as a rubber-stamping formality before an inevitable firing, a PIP is now heavily scrutinized by local courts and tribunals. This guide explores what employers are legally allowed to do, how employees are protected, and whether a post-PIP termination can trigger a wrongful dismissal claim. [ 1 , 2 , 3 , 4 ] 🛠️ What Employers Are Allowed to Do Under Singapore law—governed largely by the Ministry of Manpower (MOM) and the Employment Act 1968 —employers possess wide managerial prerogatives to handle business performance: [ 1 , 2 ] No Statutory Mandate to Use a PIP: Employers are not legally obligated to place an underperforming employee on a PIP. If someone is a poor fit, the c...