In the case of employee resignation, the law expects you to follow a procedure :
- You have to accept the resignation as the law gives the right to Singapore citizens, Singapore Permanent Residents and also others that are covered under the employment act to resign at any time either by serving the notice period or by compensating the employer with the salary in lieu.
- For an employee on an employment pass, the employer must also notify the Tax authority – IRAS and withhold all payments and salary from the day the employee resigns. Once the IRAS does an assessment and issues a tax clearance, confirming that taxes have been paid, the employer can release the salary to the employee. This may take around 21 days.
- You need to cancel the employment pass of the employee if he is on an employment pass. For the Singapore Citizen or PR employees, this does not apply.