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Recent cases, including one involving a long-serving worker who rejected an unfair performance dismissal despite multiple review opportunities, highlight a crucial reality for employers and HR professionals: termination of employment is a complex, highly nuanced process that demands careful attention to local laws and cultural contexts.
At first glance, dismissing an employee for performance reasons may appear straightforward: document performance issues, provide clear feedback, offer improvement opportunities, then terminate if there is no progress. However, Southeast Asia’s diverse employment landscape presents a far more complicated environment. Each country has unique legal frameworks, procedural fairness requirements, and cultural expectations that shape how termination must be handled.
In Singapore, employers must follow stringent fair dismissal procedures under the Employment Act and Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) guidelines. They are expected to keep clear documentation, provide performance improvement plans, and avoid abrupt dismissals to prevent claims of unfair dismissal.
Indonesia provides another example with extensive worker protections, including mandatory severance, detailed termination processes that require government approval, and a focus on dispute resolution before termination proceeds. The culture values reconciliation and fairness highly, making it essential to approach dismissals with sensitivity.
Malaysia’s Industrial Relations Act facilitates employee challenges to unfair dismissal through mediation or labor tribunals, emphasizing procedural correctness and employer accountability.
Without tailoring termination practices to local legal and cultural nuances, companies risk:
Termination must therefore be more than an administrative checklist; it demands strategic, culturally informed handling.
Employee termination becomes more complex when your team is spread across multiple countries. Each market may have different expectations for notice, severance, final pay, benefits, documentation, and employee communication.
For companies building regional or global teams, Glints TalentHub gives you one clearer way to manage employment, payroll, compliance, HR administration, onboarding, and offboarding across markets. Instead of navigating every country’s employment requirements separately, you can manage talent operations through one partner while reducing administrative risk.
This is especially useful when your company wants to hire talent in new markets without setting up a local entity first, or when your HR team needs support managing employee exits compliantly across countries.
Glints TalentHub offers deep local expertise to help companies navigate these complexities with confidence. Our EOR service coverage includes:
We collaborate with employers to craft termination strategies that reduce risks and foster trust.
Termination of employment encompasses more than just endings. It involves understanding employee rights, contractual obligations, and emotional impacts. Termination may occur due to reasons such as poor performance, misconduct, redundancy, or mutual agreement, each requiring careful and specialized handling to ensure fairness and compliance. Effective termination also relies on clear communication, thorough documentation, and compassionate support for departing employees.
What is employee termination?
Employee termination is the process of ending the employment relationship between an employer and an employee. It can happen because of resignation, poor performance, misconduct, redundancy, contract expiry, mutual agreement, or business restructuring.
Is employee termination the same in every country?
No. Employee termination rules vary by country. Each market may have different requirements for notice periods, severance, final pay, unused leave, documentation, government reporting, and employee protection.
For employers managing regional or global teams, it is important to review the local employment rules before ending employment in any market.
What should employers check before terminating an employee?
Employers should review the employment contract, local labour rules, reason for termination, notice period, final salary calculation, unused leave balance, benefits, social contributions, tax obligations, and any required documentation.
If the employee is based in another country, employers should also check whether local approval, consultation, or government notification is required.
What are common reasons for employee termination?
Common reasons include poor performance, misconduct, redundancy, role changes, business restructuring, contract expiry, probation outcome, mutual agreement, or employee resignation.
The required process may differ depending on the reason. For example, termination due to misconduct may require stronger documentation, while redundancy may involve severance or retrenchment related obligations.
What payments may be required after employee termination?
Final payments may include unpaid salary, salary in lieu of notice, unused leave, commissions, bonuses, allowances, severance pay, retrenchment benefits, or other contractual payments.
The exact amount depends on the employee’s contract, country specific rules, company policy, and reason for termination.
Is severance always required when terminating an employee?
No. Severance requirements depend on the country, contract type, length of service, and reason for termination. Some markets require severance for redundancy or employer initiated termination, while others may only require it under specific conditions.
Employers should check local rules before confirming the final payout.
What documents should employers prepare for employee termination?
Employers should prepare the employment contract, termination letter, supporting records, final pay calculation, unused leave calculation, handover plan, asset return checklist, access removal checklist, and any locally required forms.
For performance or misconduct related termination, employers should also keep records of warnings, reviews, investigations, or previous communication.
How can employers reduce termination risk across different countries?
Employers can reduce risk by localising the termination process for each market, documenting the reason clearly, following the required notice period, calculating final payments accurately, and communicating the decision professionally.
Companies should avoid using one standard termination template across every country, as local employment rules can differ significantly.
Can an Employer of Record help with employee termination?
Yes. An Employer of Record can help companies manage employee termination when the employee is hired in a country where the company does not have its own local entity.
An EOR can support employment contracts, payroll, statutory contributions, final pay, offboarding, and local compliance requirements. This helps employers manage exits more confidently while reducing administrative and compliance risk.
How does Glints TalentHub support employee termination across markets?
Glints TalentHub helps companies manage employment, payroll, compliance, HR administration, onboarding, and offboarding across multiple markets. For companies hiring regionally or globally, this gives employers a clearer way to manage employee exits while keeping local requirements, payroll accuracy, and employee experience in mind.
In Southeast Asia’s diverse markets, employment termination is a nuanced and complex process that requires deep local knowledge and cultural sensitivity. Companies that invest in understanding these aspects through partnering with experts like Glints TalentHub, are better equipped to avoid costly disputes, uphold fairness, and maintain a strong employer brand.
Termination is not just a legal procedure; it is a strategic process that, when managed thoughtfully, protects employee dignity and strengthens organizational integrity.
This article is brought to you by Glints TalentHub. Leading companies are actively building their borderless teams in Southeast Asia, Taiwan, and beyond. However, the prospect of going borderless can be daunting due to complex regulations and cultural ambiguities. With Glints TalentHub, you’ll have a dedicated team of in-market legal, HR, and talent experts by your side at every step of the way.
Glints TalentHub offers an end-to-end, tech-enabled talent solution that encompasses talent acquisition, EOR, and talent development. We empower businesses to leverage the strengths of regional talent efficiently to build high-performing, cost-efficient teams.
Schedule a no-obligation consultation with our experts to receive a tailored proposal today!
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