Chew Nam Fong Ronny v Continental Chemical Corp: Severance Pay Dispute
In Chew Nam Fong Ronny v Continental Chemical Corp Pte Ltd and another, the High Court of Singapore heard a case where Ronny Chew Nam Fong sued Continental Chemical Corporation Pte Ltd and ChemOne Holdings Pte Ltd for severance payment allegedly owed to him under a contract of employment. The court, presided over by Lai Siu Chiu J, dismissed the plaintiff's claim, finding that his employment was terminated due to poor performance, thus negating his entitlement to severance payment. The dismissal includes the plaintiff’s claim for $3,210 for legal fees paid to Clifford Law Corporation.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Claim dismissed with costs to the second defendant.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Ronny Chew sued Continental Chemical and ChemOne Holdings for severance pay. The court dismissed the claim, finding termination was due to poor performance.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| ChemOne Holdings Pte Ltd | Defendant | Corporation | Claim Dismissed | Won | |
| Chew Nam Fong Ronny | Plaintiff | Individual | Claim Dismissed | Lost | |
| Continental Chemical Corp Pte Ltd | Defendant | Corporation | Claim Dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lai Siu Chiu | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Roland Tong | Wong Tan & Molly Lim LLC |
| Lee Tau Chye | Lee Brothers |
4. Facts
- Plaintiff was employed by ChemOne Holdings Pte Ltd as Regional General Manager.
- Plaintiff's employment was terminated on 8 January 2009.
- The termination letter cited clause 3 of the employment agreement.
- The plaintiff claimed entitlement to severance payment of two years’ salary plus an annual bonus.
- The second defendant argued the plaintiff’s employment was terminated due to poor performance.
- The plaintiff was re-designated to a narrower scope of responsibilities in October 2008.
- The plaintiff failed to produce a business plan to ensure the Resins business would break even by January 2009.
5. Formal Citations
- Chew Nam Fong Ronny v Continental Chemical Corp Pte Ltd and another, Suit No 230 of 2009/T, [2011] SGHC 166
6. Timeline
| Date | Event |
|---|---|
| Plaintiff was put in touch with Hadiran Sridjaja. | |
| Plaintiff signed a contract of employment. | |
| Plaintiff started work as Continental’s Regional General Manager (Specialty Chemicals). | |
| Plaintiff's responsibilities were increased. | |
| Plaintiff was re-designated as Regional General Manager (Resins). | |
| Plaintiff received the official letter setting out his new job scope and responsibilities. | |
| Plaintiff’s employment was terminated. | |
| Termination of employment effective. | |
| Last month salary from 1st January to 8th January 2009. | |
| Two months basic salary in lieu of notice. | |
| Outstanding annual leave balance if any. | |
| Plaintiff commenced suit. | |
| Second defendant made an Offer to Settle. | |
| Deadline for plaintiff to accept the Offer to Settle. | |
| Judgment reserved. |
7. Legal Issues
- Breach of Contract
- Outcome: The court held that there was no breach of contract because the termination was due to poor performance.
- Category: Substantive
- Sub-Issues:
- Termination of employment
- Severance payment
- Wrongful Dismissal
- Outcome: The court found that the dismissal was not wrongful as it was justified by the plaintiff's poor performance.
- Category: Substantive
8. Remedies Sought
- Severance Payment
- Annual Bonus
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Chemical Manufacturing
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Aldabe Fermin v Standard Chartered Bank | High Court | Yes | [2010] 3 SLR 722 | Singapore | Cited for the principle that an employer can rely on any reason existing at the time of dismissal to justify the termination of employment. |
| D’Cruz v Seafield Amalgamated Rubber Co Ltd | Unknown | Yes | [1963] MLJ 154 | Malaysia | Cited to support the principle that common law treats contracts of employment as a sub-species of contract. |
13. Applicable Rules
| Rule Name |
|---|
| O 22A r 9(3) of the Rules of Court |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Severance Payment
- Poor Performance
- Termination of Employment
- Breakeven
- Tolling Business
- Re-designation
- EBITDA
15.2 Keywords
- employment
- contract
- severance
- termination
- chemical
- performance
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Employment Law | 90 |
| Severance Payment | 85 |
| Termination | 80 |
| Breach of Contract | 75 |
| Contract Law | 70 |
| Company Law | 30 |
16. Subjects
- Employment Contract
- Severance Pay
- Termination
- Contractual Obligations