Possibility of TADM Settlements Becoming Court Judgements
Ministry of ManpowerSpeakers
Summary
This question concerns Mr Kenneth Tiong Boon Kiat’s inquiry into making settlements mediated by the Tripartite Alliance for Dispute Management (TADM) automatic Court judgments to penalize defaulting employers. Minister for Manpower Dr Tan See Leng clarified that only the Judiciary possesses the authority to grant Court orders, though parties can register TADM agreements with the District Court to achieve enforceability. Once registered, these settlements function as Court orders, and TADM provides guidance to workers on the legal process for enforcement against non-compliant employers. The Minister noted that the Ministry of Manpower may further penalize errant employers through fines, work pass debarments, or prosecution to protect worker interests. This approach balances the recovery of payments through a combination of judicial registration and administrative support from tripartite partners.
Transcript
82 Mr Kenneth Tiong Boon Kiat asked the Minister for Manpower (a) whether the Ministry will provide that settlements mediated by the Tripartite Alliance for Dispute Management automatically become Court judgments, with penalties for employer defaults; (b) if not, why not; and (c) how is the requirement for workers to commence separate Court enforcement proceedings when an employer defaults assessed to balance employee interests against defaulting employers.
Dr Tan See Leng: The power to grant a Court order is exercised by the Judiciary. The Ministry of Manpower (MOM) does not have the legal authority to exercise a judicial power to convert settlement agreements into Court orders. Either party may instead register a settlement agreement recorded at the Tripartite Alliance for Dispute Management (TADM) with the District Court.
A registered settlement agreement is enforceable as an order of the District Court and entitles one party to take enforcement action against the defaulting party for breaching the settlement agreement. The Courts will determine if the terms of the Court order have been breached. Whilst a settlement that is not registered with the District Court is still legally binding, a party must first successfully sue the defaulting party for breaching the terms of the settlement agreement and obtain a Court order, before any enforcement action can be taken.
Notwithstanding the Court's involvement, MOM and tripartite partners have put in place a process to ensure that workers receive the agreed payment as far as possible. Once a settlement agreement has been registered and is enforceable as a Court order, if the worker did not receive payment by the due date, he can inform TADM who will help to engage the employer, advise the worker on the process to apply to the Courts to enforce the Court order, and escalate, as necessary, to MOM for possible enforcement actions. Penalties, such as warnings, fines, debarment from applying for work passes, and prosecution in Court, may be imposed on errant employers.