Help for Employees Who Face Difficulty in Recovering Unpaid Salaries Due To Required Court Enforcement
Ministry of ManpowerSpeakers
Summary
This question concerns Ms Diana Pang Li Yen’s inquiry regarding employees who face difficulties recovering salaries despite assistance and the mechanisms available to expedite such recovery. Minister for Manpower Dr Tan See Leng stated that 94% of claimants fully recover their salaries, while 4% receive partial recovery or financial assistance, and 2% do not recover their wages. Registered settlement agreements function as enforceable Court orders, with TADM providing guidance on enforcement processes and engaging employers on payment obligations. The Ministry of Manpower investigates serious cases, employing penalties such as work pass debarment and prosecution to deter errant employers. Convicted offenders face fines up to $30,000 and imprisonment for up to 12 months for repeat violations of the Employment Act.
Transcript
113 Ms Diana Pang Li Yen asked the Minister for Manpower of the 10% of employees who are unable to recover their salaries even with assistance from Tripartite Alliance for Dispute Management (TADM) and Employment Claims Tribunals (ECT) (a) what proportion of these employees continue to face difficulties in recovering unpaid salaries due to the requirement of further Court enforcement; and (b) whether the Ministry has available mechanisms to expedite the recovery process.
Dr Tan See Leng: As reported in the Employment Standards Report 2024, 94% of employees who lodged salary claims with the Tripartite Alliance for Dispute Management (TADM) fully recovered their salaries, while 4% recovered their salaries partially through security bond insurers and main contractors or were assisted through financial assistance. The remaining 2% did not recover their salaries and were mainly higher income earners.
Once a worker registers a settlement agreement with the District Court, it becomes enforceable as a Court order. If a worker did not receive payment by the due date, he or she can seek TADM's assistance to engage the employer on the payment obligation and advise the worker on the process to apply to the Courts to enforce the Court order. In serious cases, the Ministry of Manpower will investigate the employer for possible offences under the Employment Act. Penalties, such as warnings, debarment from applying for work passes and prosecution in Court, may be imposed on errant employers who do not pay salaries. Upon conviction, employers could be fined up to $15,000 and/or imprisoned for up to six months for the first offence; and up to $30,000 and/or imprisoned for up to 12 months for repeat offenders.