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When an employee's long-term illness makes it impossible for them to return to work, you may need to issue a formal dismissal letter that complies with Singapore's employment laws. This document protects both you as an employer and ensures the employee receives proper notice and entitlements during a difficult time.

When do you need this document?

You'll require a Long Term Sickness Dismissal Letter when an employee has been absent for an extended period due to illness and medical evidence indicates they cannot return to their role in the foreseeable future. This typically occurs after you've exhausted reasonable accommodations, such as modified duties or flexible working arrangements. The letter becomes necessary when continued employment is no longer viable for operational reasons, despite your efforts to support the employee's return to work. You must ensure that the dismissal is based on legitimate medical grounds rather than discriminatory practices against employees with health conditions.

Key legal considerations

The dismissal must be justified by substantial medical evidence from qualified healthcare professionals confirming the employee's inability to perform their duties. You must demonstrate that you've considered reasonable workplace accommodations and alternative roles within your organization. The letter should clearly reference the medical documentation supporting your decision while maintaining confidentiality of specific medical details. You're required to provide proper notice periods as specified in the Employment Act, typically one month for employees with more than six months of service. Final payments must include outstanding salary, unused annual leave, and any contractual benefits. If the illness is work-related, additional considerations under the Work Injury Compensation Act may apply, potentially affecting dismissal procedures and compensation obligations.

Legal requirements in Singapore

Under Singapore's Employment Act, you must provide written notice of termination and cannot dismiss an employee while they're on approved medical leave without Ministry of Manpower approval. The Tripartite Guidelines on Fair Employment Practices require you to engage in good faith discussions about workplace accommodations before proceeding with dismissal. You must ensure the dismissal process doesn't discriminate against the employee based on their medical condition. The letter should specify the exact termination date, final working day, and breakdown of all payments due. If disputes arise, the employee may file claims under the Employment Claims Act, so proper documentation of your accommodation efforts and medical consultations is essential. You should also consider whether any insurance benefits or extended healthcare coverage should continue post-termination as part of your company's compassionate employment practices.