Note: You can file a claim with your Singpass. You will be notified of the next step, and you can log into your dashboard via eServices to view and manage your claim.

Use "Ask TADM" chatbot to get immediate answers, claim assessment, and to file your claim. It will offer to make an appointment if needed.

Do take note of the time limit(s) to file your claim(s). Visit the Ministry of Manpower if you have general queries on the Employment Act.

Recovering Salaries Through Timely Intervention

Employer fulfilling obligations despite business difficulties

Disclaimer: The case study is based on an actual case handled by TADM. The names and identifying details in this case have been changed to protect the privacy of individuals.

Learning insights

  • Poor business performance is not a reasonable justification for employers to withhold employees’ salaries.
  • Employees should contact TADM early for assistance before the situation deteriorates and the amounts owed to them accumulate.

Background

It all started when a global market research company was acquired by another company.

Shortly after, some workers were dismayed to find that their salaries were often held back. Nevertheless, they continued to work when the firm promised that they would receive their salaries.

After three months of having their salaries withheld, the workers had finally run out of patience. Six local workers and three foreign workers then decided to collectively approach TADM for help and file their claims.

How TADM helped

TADM contacted the director, who was based overseas, and told him to present himself in Singapore for a mediation session. Given the urgency of the situation, TADM arranged for all nine cases to be heard within the same day of the director’s arrival in Singapore.

TADM’s mediator helped the workers to review their situation and verify the amounts owed based on the documents provided by both parties during mediation.

During mediation, the director revealed that due to the loss of an important contract, the company faced financial difficulties and lacked funds to pay salaries to their staff. The director also revealed that the company’s bank account has been frozen.

Given the employer’s admission that salaries were not paid for three months, TADM alerted the Ministry of Manpower which sent a team to investigate the situation. The director’s passport was impounded as a condition of bail while investigations took place.

Outcome

The Ministry’s investigations confirmed that the company had indeed not paid salaries under the Employment Act and issued a warning against the company. Through TADM’s mediation, the director agreed to make full repayment of the owed salaries to all workers. TADM monitored the payment status closely to ensure that the company delivered on its promise.

TADM’s quick intervention ensured that all workers received their full salaries. In addition, TADM’s close collaboration with the Ministry of Manpower ensured that appropriate enforcement action was taken against the company.