Two Dormitory Operators Fined for Aiding Employers to House Foreign Workers in Unacceptable Accommodation

1. The Ministry of Manpower (MOM) has issued two companies with composition fines for abetting employers in committing the offence of failure to provide acceptable accommodation to foreign workers. Sunhuan Construction Pte Ltd was issued with two composition fines of $10,000 each, while ST9 Pte Ltd was issued a composition fine of $50,000 – the highest to date.
   
   Facts of the case
   
   Sunhuan Construction Pte Ltd
2. MOM received feedback from the Singapore Civil Defence Force (SCDF) which had fined Sunhuan Construction Pte Ltd for operating an overcrowded and unsafe workers’ dormitory at Tagore Industrial Avenue.
3. A joint inspection by MOM with the Urban Redevelopment Authority (URA) was conducted in October 2010. During the visit, a total of 377 foreign workers from 12 companies were found residing at the premises, which had poor living conditions, ventilation and housekeeping. The workers were living in cramped conditions which compromised their well-being.
4. Further investigations revealed that Sunhuan Construction Pte Ltd had provided the accommodation at the premises to its subsidiary companies and sub-contractors, while being aware that it had flouted several rules, including overcrowding. The site was also illegally operating as a commercial dormitory and utilising space that had not been approved for accommodation purposes.
5. Sunhuan Construction Pte Ltd was issued a $10,000 composition fine in February this year for failing to provide acceptable accommodation to its foreign workers. It also became the first company to be issued a $10,000 composition fine for abetting other companies in failing to provide acceptable accommodation.
   
   ST9 Pte Ltd
6. In December 2010, MOM conducted an inspection at three factory-converted dormitories managed by ST9 Pte Ltd at Woodlands Industrial Park. More than 1,100 foreign workers were found at the three units which were overcrowded by more than double their occupant loads. More than 600 workers were found staying on levels that were not approved to be used for housing.
7. For failing to provide acceptable accommodation to such a significant number of foreign workers as a dormitory operator, ST9 Pte Ltd was issued a composition fine of $50,000 in May this year – the highest composition fine to date issued to an abettor for the offence of failing to provide acceptable accommodation to foreign workers.
   
   Accommodation providers are responsible for providing acceptable accommodation
8. Mr Aw Kum Cheong (区锦章), Divisional Director, Foreign Manpower Management Division, MOM (人力部外劳管理署署长) said, “Providing acceptable accommodation is the responsibility of the employer, and we will continue to enforce against those who fail to do so as well as those who profit from providing unacceptable accommodation. Whether they have directly operated the dormitory or acted as an agent on behalf of the operator or employer, they are breaking the law. MOM will continue to enforce against those who do not ensure the well-being of foreign workers.”
9. Under the Employment of Foreign Manpower (Work Passes) Regulations, employers are required to ensure that their foreign workers have acceptable accommodation. Employers who fail to do so are considered to have committed an offence under the Employment of Foreign Manpower Act (EFMA). An employer found guilty of an offence is liable to a maximum fine of $5,000 and/ or six months’ imprisonment per charge. In addition, the breach will be taken into consideration when the Ministry considers the employer’s subsequent application for Work Permits. A person who abets the commission of any offence under the EFMA is also guilty of an offence, and is liable on conviction to be punished with the punishment provided for the offence.
10. This is the first time MOM has taken action for abetment of unacceptable accommodation. Two companies have been issued a composition fine thus far, while one company was issued a warning letter. Last year, MOM enforced against more than 1,700 employers for failing to provide acceptable accommodation to their foreign workers. So far this year, MOM has taken action against more than 260 employers for the same offence.