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Written Answer by Mrs Josephine Teo Minister for Manpower to PQ on mediation cases by TADM subsequently withdrawn in last three years due to payment or resolution through formal settlement agreement

Employment practices

NOTICE PAPER NO. 1712 OF 2019 FOR THE SITTING ON 5 AUGUST 2019
QUESTION NO. 1284 FOR WRITTEN ANSWER

MP: MS ANTHEA ONG

To ask the Minister for Manpower with regard to cases registered for mediation by the Tripartite Alliance Dispute Management in each of the last three years that were then subsequently withdrawn due to payment, part-payment or resolution through a formal settlement agreement (a) what were the respective average and median proportions of the settlement amounts compared to the amounts initially claimed; and (b) how many claimants were not paid the settlement amount in full within four weeks of registering the settlement agreement in the District Court.

Answer

  1. The Tripartite Alliance for Dispute Management (TADM) has concluded about 15,000 salary claims lodged between April 2017 when it was established and December 2018. Two-thirds of the claims were either resolved through payment from employers in a private settlement or by way of a settlement agreement which when registered with the District Court can be enforceable. Of the remaining one-third, about half were referred to the Employment Claims Tribunals for adjudication as the disputes could not be resolved through mediation, and the other half were withdrawn by the claimants because they found that their claims were weak or invalid.
  2. Initial claims are not always accurate or valid. The ratio of settlement to initial claims is therefore not a meaningful indicator. During mediation, TADM mediators will work with the parties involved to verify the actual amount of salary arrears. Claimants may settle for less if the employer is in genuine financial difficulty. Nonetheless, vast majority of the settlements were close to or same as the valid amounts claimed.
  3. Once a settlement agreement has been reached, TADM will actively monitor payment by calling the claimants within three working days of the scheduled payment date, which is arrived at by mutual agreement between the two parties. Sometimes, the claimant is not contactable or cannot remember when he was paid. More importantly, when a claimant reports to TADM that he did not receive any payment after the agreed payment date, TADM will immediately engage the employer concerned and remind the employer to pay up. The matter will also be reported to MOM for possible enforcement follow up.
  4. 93% of the claimants have reported that they received full payment based on the settlement amount. Another 4% reported partial payment, and the remaining 3% reported no payment. Enforcement action is taken against all employers who do not pay up, including suspension of their work pass privileges. The more egregious employers are prosecuted.