JUDGMENT

Choor Singh J:

The plaintiff's claim in these proceedings is for damages for wrongful dismissal.

The facts which are not in dispute are these. The plaintiff is a professional engineer. He graduated from the Singapore Polytechnic in 1963 and prior to his employment by the defendant company he worked as technical manager with Jardines and later as sales engineer with the General Electric Company. The defendant company which is incorporated in America has an office in Singapore and has business interests in other parts of South East Asia.

In September 1973 the plaintiff was employed by the defendant company as manager of the defendant company's Singapore office. On the evening of 16 October 1975 Mr Frank O'Callaghan, the defendant company's manager for the Far East region called on the plaintiff. He went into the office occupied by the plaintiff and there was some conversation between the plaintiff and O'Callaghan the exact nature of which is in dispute but the next morning, the plaintiff wrote the following letter to O'Callaghan:

17 October 1975 Miss HN Low - Secretary AAF Pte. Ltd. for onward transmission to: Mr. FE O'Callaghan - Manager ISD AAF International Lvl, Ky USA.

Gentlemen,

Following my resignation on 16 October as manager of AAF Pte. Ltd. I would like to draw your attention that the following monies are outstanding to me:

(1) Expenses Reports up to 16 October 1975 S$ 511.00

(2) One month formula Bonus S$ 3,150.00

Ref: My appointment letter of 11 September 1973, '... In addition, it is our policy to pay the one month formula bonus that is customary in Singapore on 15~December which is based on twelve months' service during the Company's fiscal year.'

Total sum due to me S$ 3,661.00

Please note that I have completed my services as manager of AAF Pte Ltd for the 12 months of Fiscal Year ending 30 September 1975, hence my entitlement. In my present circumstances, could you please authorise this payment to me as soonest as possible.

I requested Mr Kwan and Miss HN Low to mail to me the list of books AA- Sing has ordered and upon checking, I will endeavour to return whatever are in my possession. I pointed out that many of the books, I have not used and should still be in AA-Sing's premises. The fact that these books cannot be located does not mean I have used them. Other people in the premises could also found use of them. Regarding some competitive filter brochures I may have had from time to time, these were on loan to me from my personal friends, which I returned, therefore AAF has no claim on these.

I am awaiting your letter acknowledging my period of service in AA-Sing, which you promised me and trust this is forthcoming soon.

I still regard Mr O'Callaghan as a fair and honest person and look forward to receive the above sum as fair settlement. Thanking you.

Truly,

Sgd Stanley P H Ng.

On the evening of 16 October 1975 the plaintiff was paid $5,114 by O'Callaghan. This sum according to the defence was made up as follows:

Particulars

(a) 16 days' pay in October 1975 $1,626.00 (b) 3 weeks' pay in lieu of notice $2,134.00 (c) 121/2 days' leave pay $1,880.00

$ 5,640.00 Less CPF on items (a) and (c) $526.00

$ 5,114.00

The defendant company maintains that the plaintiff having resigned from his appointment on 16 October 1975 and having been paid on that day all that was due to him, the plaintiff's claim should be dismissed with costs.

The plaintiff on the other hand alleges that he did not resign; that he was dismissed and that the termination of his employment amounts to wrongful dismissal in that he was not given reasonable notice and he claims the sum of $10,977 as damages:

Particulars

(a) three months' salary in lieu of notice $9,450.00

(b) one month's bonus on completing second

fiscal year ending 30 September 1975 $3,150.00

(c) reimbursible expenses $511.00

$13,111.00

Less receipt of three weeks' pay in lieu notice $2,134.00

$10,977.00

The real issue in this case is whether or not