Written Answer to PQ on Detection of Defaults and Safeguards to Protect Employees

NOTICE PAPER NO. 595 OF 2026 FOR SITTING ON 05 MARCH 2026
QUESTION NO. 1724 FOR ORAL ANSWER

MP: Dr Charlene Chen

To ask the Minister for Manpower in light of recent closures in the student care sector (a) what inter-agency mechanisms exist for early detection of wage or CPF payment defaults by essential service vendors; (b) what the average timeline is for short-term relief fund disbursement to help eligible employees; and (c) whether additional safeguards or expedited processes may be considered to better protect employees in cases of abrupt insolvency.

Answer:

1 The Ministry of Manpower (MOM) and Central Provident Fund (CPF) Board have processes in place for data sharing to detect CPF and salary arrears by employers across all sectors.

2 In addition, the Government and our partners have various measures to assist employees affected by sudden business closures. Employees who face late or unpaid salaries or CPF contributions should approach MOM, the Tripartite Alliance for Dispute Management (TADM) or the CPF Board for assistance as soon as possible. MOM and CPF Board will take enforcement action against errant and irresponsible employers. TADM will support employees in filing and mediating salary claims or referring the claims to the Employment Claims Tribunals for determination. If employers cannot pay the salary arrears due to business failure, eligible local lower-income workers may be assisted through the Short-Term Relief Fund. It takes about one to two months after the verification of claims to disburse the assistance.

3 Workforce Singapore, SkillsFuture Singapore and the Employment and Employability Institute can help displaced workers find new jobs through their job matching services and training programmes. Workers may also receive temporary financial support under the SkillsFuture Jobseeker Support scheme. Lower-income households who require financial assistance to meet basic needs can also approach their Social Service Office.

4 We will continue to review our measures to ensure that employees are supported and receive prompt assistance when issues arise.