No person will be mentioned specifically, and names will not be released.
For those unfamiliar with the intricacies of employment dispute management in Singapore, let me shed some light on the process. TADM stands for the Tripartite Alliance for Dispute Management, and ECT refers to the Employment Claims Tribunal. While TADM and ECT are connected in the employment claims process, they operate independently, and their lack of communication can lead to some confusion. Here’s a rundown of my recent experience and the insights I gleaned along the way.
Understanding the Process
TADM is managed by the Ministry of Manpower (MOM), while ECT falls under the Singapore Courts. In theory, the process involves mediation at TADM, followed by a possible referral to ECT if mediation fails. However, in practice, the transition between these two entities isn’t seamless. TADM and ECT do not communicate directly, which means that any unresolved claims from TADM need to be manually referred to ECT by obtaining a Claims Referral Certificate. ECT also will not receive any other documents from TADM.
My TADM Experience: A Challenging Mediation
My experience with TADM was less than satisfactory. During mediation, the mediator seemed to overlook the core issue. Despite presenting a list of problematic behaviors—ranging from insubordination to negligence, including the serving of expired milk to customers over two days—the mediator was unclear on whether such an act constituted grounds for immediate termination. Her lack of clarity and internal doubts seemed to embolden the ex-employee, leading to the escalation of the case to ECT.
If I could, I would have preferred to end the case here. But the mediator’s lack of knowledge proved to be harmful to both claimant and respondent.
Navigating ECT: Key Takeaways
At the Case Management Conference (CMC) with ECT, I learned several important lessons:
- Adherence to Court Procedures: Even if you’re representing yourself, the court expects you to adhere to the same standards as a legal professional. Timeliness is crucial; in my case, a late filing led to one of the ex-employee claims being struck out.
- Wrongful Dismissal vs Salary in lieu of Notice: For wrongful dismissal cases, it is essential to establish that “due inquiry” was conducted (a good link is posted below). Although this wasn’t contested in my case, understanding this aspect is crucial. For non-payment of salary in lieu of notice (SILON), proving misconduct is key.
- Preparation and Negotiation: The Assistant Registrar emphasized that while ECT is not a mediation session, they encourage voluntary settlement to save resources – state, claimant, respondent. When negotiating, I learned the importance of anchoring your offer. I initially proposed $500, based on my judgment of the situation and past experiences. Read more below.
- Understanding the Process: The Assistant Registrar provided clear procedures for further steps, including consolidating witness statements and preparing a hearing bundle, which I estimated would take another 2-3 hours to collate.
A Lesson in Negotiation
During the CMC, I faced a critical negotiation moment. The AR asked me if I wanted to offer her any sum of money to end the case on a “no-liabilities admitted” basis, which would close the case completely if she accepts.
In my mind, I did some quick math and calculated it as
- 2-3 hours to prep documents for CMC Session 2
- 1 hour to attend CMC Session 2 (during a planned holiday, no less)
- 3 hours to attend trial
- 6 man hours for my team to attend trial, who will stand as witness
- Considering my own charge-out time at $250 an hour, and my team’s charge out rate at $70 an hour, that would be ~$2200. Therefore, I thought it was fair to offer $1000. However, by offering $500, it would present me a savings of $1700.
- This is purely from the perspective of the monetary value of future time saved. For her poor behaviour, I feel she deserved nothing.
Hence, a fair settlement could be $1000, but I offered $500 as a starting point. The ex-employee sought a higher amount in a non-committal manner after a 10 minute deliberation. Hence, I refused. The AR also hinted to her that if the case went to Trial, if the allegations proved true, she might not get anything, hence a bird in hand might be better than two in the bush. He also said if she lost the case at court, it would appear bad on her (he said to make your own inferences on this). If she accepted $500, she would walk away with money and nothing to tarnish her name. After some deliberations, she agreed with it. The Court will issue an Order which make this decision final without any further appeals.
Reflection on the Settlement
The settlement of $500 was significantly less than the initial claims of $3,000 or $9,000. Considering the time and effort saved from avoiding further court sessions and document preparation, I found it to be a fair outcome. The settlement amount was just 14% of the valid claim, or 6% of the original claim, which in the grand scheme, was a reasonable trade-off for resolving the dispute efficiently.
Lessons for Business Owners
Based on my experience, here are some practical takeaways for small business owners:
- Conduct a “Due Inquiry”: Before terminating an employee, ensure you conduct a formal due inquiry. This can involve documenting the process of questioning and responses, which helps in validating the grounds for termination. This post is helpful: https://www.klgates.com/What-Constitutes-Due-Inquiry-in-a-Dismissal-for-Misconduct-Scenario-04-11-2018
- Recognize Industry-Specific Misconduct: Understand that misconduct can vary by industry, but illegal acts are inherently considered misconduct, which are grounds for immediate firing and denial of notice pay. This was a point of confusion during my TADM experience, which could have been clarified by the mediator.
- Stick to Deadlines: Courts are strict about procedural deadlines. Ensure you adhere to all timelines to avoid complications. If I knew this, then I wouldn’t have filed a response to the case that was submitted late, saving me $30.
- Master Negotiation Skills: Always enter negotiations with a clear strategy and understand that initial offers can set the stage for further discussions. Reading facial signals will guide you if you should raise or stay your offer.
- It’s normal to feel nervous: Even with all the facts in my favour and mentally preparing myself for it while having a full meal just before the Zoom meeting, I still ended the session with gastric pain.
In conclusion, while dealing with TADM and ECT can be complex, understanding the process and being well-prepared can make a significant difference. For small business owners, these insights can help navigate disputes more effectively and avoid common pitfalls.
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