Forum: MOM will not hesitate to take enforcement action against errant employers
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We refer to the letter “ Stronger measures needed to deter errant employers
We thank Mr Ng for his feedback. Sudden closures of companies are indeed difficult and distressing situations for affected workers.
If companies are ceasing operations, they should conduct retrenchments in a responsible and sensitive manner, in accordance with the Employment Act and the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment. This includes ensuring that employees are paid their salaries and filing the mandatory retrenchment notification. Companies should also give sufficient notice to workers, and unions where applicable.
The Ministry of Manpower (MOM) takes a serious view of any breaches. We are investigating Twelve Cupcakes for non-payment of salaries and other potential breaches of the Employment Act. If the company or its directors are found to have breached the laws, we will take enforcement action and impose penalties in accordance with the severity of the breach. This could include fines or imprisonment. While we will hold the individuals responsible accountable, it would not be practical or reasonable to punish relatives who are not involved in the breach. Imposing overly strict regulations would stifle the market, undermine business confidence and limit job creation opportunities.
MOM is also working with various stakeholders to assist the affected workers. The Food, Drinks and Allied Workers Union (FDAWU) and the Tripartite Alliance for Dispute Management are helping workers with the filing of claims with the liquidator to recover owed salaries. The CPF Board will file a claim with the liquidator to recover outstanding CPF contributions for the workers. The Taskforce for Responsible Retrenchment and Employment Facilitation, which consists of MOM, Workforce Singapore, the National Trades Union Congress (NTUC), and NTUC’s Employment and Employability Institute, is working closely with the FDAWU to help affected workers with new employment through job-matching support.
Kandhavel Periyasamy
Divisional Director
Labour Relations & Workplaces Division
Ministry of Manpower
