Enforcement Actions Against Employers' Unlawful Overtime Pay Arrangements and Existing Support for Migrant Workers
Ministry of ManpowerSpeakers
Summary
This question concerns MP Cai Yinzhou’s inquiry about the prevalence of and enforcement against unlawful overtime pay arrangements involving fixed monthly allowances offsetting overtime. Minister for Manpower Dr Tan See Leng stated that such practices violate work pass regulations, though the number of complaints remains small, and enforcement includes warnings or fines. Affected workers can file claims through the Tripartite Alliance for Dispute Management and are permitted to remain in Singapore to seek alternative employment while their claims are resolved. For those choosing to return home, remote mediation and adjudication are available, alongside legal assistance provided by the Migrant Workers’ Centre to help pursue their claims. These measures ensure workers can resolve salary shortfalls through the Employment Claims Tribunals regardless of whether they choose to stay in Singapore or return to their home countries.
Transcript
59 Mr Cai Yinzhou asked the Minister for Manpower following the High Court's April 2026 ruling that using a fixed monthly allowance to offset overtime pay is unlawful (a) whether the Ministry has assessed how prevalent this practice is; (b) what enforcement actions the Ministry will take against employers found to have adopted similar arrangements; and (c) what support structures exist to help migrant workers pursue such pay claims after leaving Singapore.
Dr Tan See Leng: Under the Employment of Foreign Manpower (Work Passes) Regulations, employers of migrant workers cannot offset overtime payment from fixed monthly allowances specified in the employment contract.
Migrant workers who encounter such practices should inform the Ministry of Manpower (MOM). MOM will engage the companies concerned and, if necessary, take enforcement actions, including issuing warnings and imposing fines. So far, the number of such complaints has been small.
Migrant workers who face a shortfall in overtime payment should file a claim with the Tripartite Alliance for Dispute Management (TADM). Those with valid salary claims, including shortfall in overtime pay, can remain in Singapore to seek alternative employment until their claims are resolved at TADM or at adjudication at the Employment Claims Tribunals (ECT). For those who prefer to return to their home countries, remote mediation by TADM and adjudication by the ECT can be arranged. Migrant workers can also approach the Migrant Workers' Centre for legal assistance.