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Singapore
entitlementspenalty clausesdiscretion
Leiman, Ricardo v Noble Resources Ltd
[2020] 2 SLR 386; [2020] SGCA 52
Key Principle
Where a settlement agreement governing post-resignation entitlements vests decision-making power in a contractually designated entity (such as a Remuneration Committee), courts will review whether the entity acted within the scope of its powers, followed implied procedural requirements, and assessed only conduct falling within the agreement's temporal scope; a clause that forfeits vested benefits as a secondary consequence of breach may be struck down as a penalty.
Area of Law
employment
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