Employment Act 1955 · Updated to 1 Aug 2023 · Part III · Payment of Wages
21. Payment on termination of contract in special circumstances and on breach of contract
Feedback & supportWhere an employer terminates the contract of service of an employee without notice in accordance with subsection 13(1)
employer
“employer” means any person who has entered into a contract of service to employ any other person as an employee and includes the agent, manager or factor of such first mentioned person, and the word “employ”, with its grammatical variations and cognate expressions, shall be construed accordingly;
or (2) and paragraph 14(1)(a)—
the wages, less any deductions which the employer is entitled to make under section 24, earned by such employee up to and including the day immediately preceding the day on which the termination of the contract of service takes effect; and
in addition, where the employer terminates the contract of service under subsection 13(1), the indemnity payable to the employee under that subsection, shall be paid by the employer to the employee not later than the day on which such contract of service is so terminated.
Where an employee terminates his contract of service with an employer without notice in accordance with subsection 13(1)
employee
“employee” means any person or class of persons— (a) included in any category in the First Schedule to the extent specified therein; or (b) in respect of whom the Minister makes an order under subsection (3) or section 2a;
or (2) or subsection 14(3), the wages, less any deductions which the employer is entitled to make under section 24, earned by such employee up to and including the day immediately preceding the day on which the termination of the contract of service takes effect shall be paid by the employer to the employee not later than the third day after the day on which the contract of service is so terminated.
wages
“wages” means basic wages and all other payments in cash payable to an employee for work done in respect of his contract of service but does not include— (a) the value of any house accommodation or the supply of any food, fuel, light or water or medical attendance, or of any approved amenity or approved service; (b) any contribution paid by the employer on his own account to any pension fund, provident fund, superannuation scheme, retrenchment, termination, lay-off or retirement scheme, thrift scheme or any other fund or scheme established for the benefit or welfare of the employee; (c) any travelling allowance or the value of any traveling concession; (d) any sum payable to the employee to defray special expenses entailed on him by the nature of his employment; (e) any gratuity payable on discharge or retirement; or (f) any annual bonus or any part of any annual bonus;