Company fined after failing to compensate employee for permanent incapacity within 21 days

SINGAPORE – A freight forwarding company has been fined after it failed to pay one of its employees, who had suffered permanent incapacity, a compensation of more than $98,000 within a stipulated time of 21 days.

On May 8, AIS Global Forwarders was convicted of an offence under the Work Injury Compensation Act and was fined $9,000.

Ministry of Manpower (MOM) prosecutor Justin Thia told the court that the company had earlier instructed the employee, Mr Abdul Halim Mokhtar, to carry an exercise machine from a flat in Shelford Road, near Dunearn Road, on Jan 6, 2022.

Mr Abdul Halim suffered permanent incapacity after the handle of the machine struck his forehead, causing an injury.

Details about the injury and his current condition were not disclosed in court documents.

Investigations revealed that on Jan 6 that year, AIS Global Forwarders did not have a valid work injury compensation insurance policy to cover him for the head injury.

A notice of assessment of compensation was served on the company on July 17, 2023, requiring it to pay Mr Abdul Halim the compensation within 21 days of the date of the notice.

A certificate of order dated Aug 16, 2023, was later made under the Act and served on AIS Global Forwarders that same day.

According to the order, the company had to pay Mr Abdul Halim the compensation sum of more than $98,000 within 21 days of the service date of the order – Aug 16, 2023.

However, AIS Global Forwarders failed to pay any part of the amount by Sept 6 that year, and it was later charged in court in 2024.

The Straits Times has reached out to MOM to find out if the company has given Mr Abdul Halim the compensation.