Over $3.1m awarded to finance veteran for wrongful dismissal

Terminating an Employee: A recent Singapore Case

In a recent landmark case, a Singapore High Court awarded German cryptocurrency executive Alexander Hoeptner over US$2.4 million in damages for wrongful dismissal, potentially marking the highest compensation for such claims in Singapore’s history. Hoeptner, who was the CEO of HDR Group—a company associated with the BitMEX cryptocurrency exchange—was dismissed in 2022 by his employer, Three Fins. The company claimed he was terminated for misconduct related to unauthorised expenses and failure to secure necessary approvals. However, Justice Chua Lee Ming found the dismissal process flawed as it did not adhere to Hoeptner’s employment contract, which required termination decisions to be made by the directors of Three Fins.

The court ruled that Three Fins’ failure to follow proper procedures, including not calling crucial witnesses, significantly undermined its claims. As a result, Hoeptner was awarded over US$2.4 million, factoring in legal costs and interest, due to the substantial compensation guaranteed in his contract.

Importance of Proper Termination Procedures

This case serves as a critical reminder for employers, especially those operating in multiple jurisdictions, about the risks associated with improper dismissals. Here are some key takeaways:

1. Adhere to Employment Contracts: Always ensure that termination processes align with the terms outlined in employment contracts. Failure to do so can lead to costly legal disputes.
2. Document Everything: Maintaining detailed records and documentation of performance issues and communications can protect against wrongful dismissal claims.
3. Consider Severance and Compensation: Be aware of the contractual obligations related to severance and other compensation. Ignoring these can lead to significant financial repercussions.

The Marco Solution

At Marco, we understand that offboarding is a sensitive and complex process, particularly in a global context. Our team is equipped to assist businesses in managing terminations effectively and compliantly in Singapore and around the world. At Marco, we provide:

• Tailored Offboarding Solutions: We design and implement offboarding processes that align with local regulations and your company’s policies, ensuring a smooth transition for both employer and employee.
• Compliance Assurance: Our expertise in international labor laws helps mitigate the risk of non-compliance, safeguarding your company against potential legal challenges.
• Comprehensive Documentation: Marco is a data-driven service provider, and we maintain all necessary data points contemporaneously in real-time.

By partnering with Marco, you can manage your offboarding processes with certainty. If you’d like to learn more about how we can assist with your global payroll and HR needs, reach out to us today.