Singapore court overturns injured worker waiver claim

Azmi Muda suffered serious head injuries in a workplace accident on 16 April 2018. He sought damages for loss of earnings, medical costs, and pain and suffering. His employer, Hiap Tong Crane & Transport, denied the claims and argued that they had already signed a waiver agreement with Azmi on 4 May 2018. Under the agreement, the employer would pay Azmi S$1300, equivalent to one month’s pay, in exchange for Azmi agreeing to give up his right to further claims against the employer.

The court ruled that the waiver agreement had no contractual effect, although it also allocated 15% of the responsibility for the accident to Azmi. A report has indicated that the court will hold a separate hearing to assess the compensation payable to Azmi by the company soon.

Mayumi Soh of Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, said: “The new ruling set out by the Singapore court serves as a stern reminder to employers that they cannot seek to avoid liability for negligence arising from personal injury through unreasonable contract terms or agreements with their employees.”

The judge held that paying Azmi S$1,300 was “not good consideration for him giving up his rights of action….and…. indemnifying” the company for losses caused. Therefore, the waiver was found to have no contractual effect. Further, the judge also held that the term in the agreement indicating that Azmi would be allowed to continue working once he was fully recovered had no contractual effect as it was “a mere statement of intention” and “cannot constitute good consideration”.

Providing consideration refers to offering something of value in exchange for a benefit.