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Six Companies and Four Directors from Construction & Marine Industries Charged in Court for Failing to Pay Workers' Salaries

Employment practices

12 August 2010

  1. The Ministry of Manpower (MOM) has charged six companies and four directors from the construction and marine industries for failure to pay salaries to their workers. This is part of MOM's continuing efforts to ensure that employers fulfil their legal obligations to their workers. Some of the employers are also facing charges for not paying salaries on time and making unauthorised salary deductions. The full list of employers and the charges they face can be found in the Annex.

    Brief Facts of the Cases

    88 Builders Pte Ltd & 89 Builders Pte Ltd
  2. 94 Bangladeshi construction workers (60 from 88 Builders Pte Ltd and 34 from 89 Builders Pte Ltd) were owed salaries ranging from 3 to 4 months, with the majority of the arrears between the period Nov 09 and Feb 10. After mediation by MOM, an amicable settlement was reached, allowing all the workers to receive payment for their salary arrears. The director of 88 Builders Pte Ltd and 89 Builders Pte Ltd, Fahhrosh Khan Bin Shah Baz, faces 43 charges under the Employment Act.

    Scaffold Master & Construction Pte Ltd, Marine Scaffold Master Pte Ltd and Master Scaffolds Pte Ltd
  3. 57 Bangladeshi workers (32 from Scaffold Master & Construction Pte Ltd, 20 from Marine Scaffold Master Pte Ltd and 5 workers from Master Scaffolds Pte Ltd) were owed about 3 months' salaries from December 2009 to February 2010. Through MOM’s intervention, all the workers managed to get back their salaries in full. Scaffold Master & Construction Pte Ltd, Marine Scaffold Master Pte Ltd and Master Scaffolds Pte Ltd face 93, 56 and 13 charges respectively under the Employment Act. Bala Subramaniam S/O Muniandy, the director of all three companies, faces 57 charges under the Employment Act.

    Sin Lim Seng Construction (1998) Pte Ltd
  4. 8 PRC construction workers from Sin Lim Seng Construction (1998) Pte Ltd were owed their salaries for October 2008 and July 2009. The workers filed their salary claims with the MOM Labour Court (LC) and orders were subsequently made for the company to resolve the salary arrears. However, the company did not comply with the court orders to repay the workers. The company and its Director, Chew Kee Seng, will each be facing 24 charges under the Employment Act.

    U-Hin Engineering Pte Ltd
  5. Similarly, U-Hin Engineering Pte Ltd failed to comply with MOM LC's orders to repay its 3 construction workers (1 Singaporean and 2 Malaysians) their salaries for the period from September 2008 to January 2009. The company and its Director, Wong Siu Hung, will each be charged with 43 charges under the Employment Act.

    Asia Link Marine Industries Pte Ltd
  6. In December 2009, MOM initiated an investigation into Asia Link Marine Industries Pte Ltd after receiving complaints from their workers on late salary payments. Investigations revealed that the company was a recalcitrant offender, and had previously been warned by MOM in February 2009 for the late payment of salaries to their workers from September to November 2008. The company faces 54 charges under the Employment Act.

    MOM will protect the Interest of Workers
  7. It is an offence under the Employment Act for an employer not to pay salary for work done within 7 days after the salary period, or within 3 days from the termination of the contract of service. Under the Employment Act, a first-time offender is liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 6 months or both. For any subsequent offence, an offender shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding one year or both.
  8. Addressing the charges brought against the eight companies, Mr Quek Jen Juan, Director of the Labour Relations & Workplaces Division (郭仁运, 人力部劳资关系及福利署署长) said, "Employers must fulfil their legal obligations by making sure that their workers, local and foreign alike, receive their salaries promptly. Workers are advised to come forward to lodge their salary claims with MOM early, rather than letting their salary arrears accumulate. This will enable MOM to mediate and recover the salary arrears swiftly. Employers who do not pay their workers on time are infringing the Employment Act. As shown in these cases, MOM will not hesitate to take the necessary action against the companies and their directors, including prosecution, forfeiting of security bonds and barring them from hiring foreign workers in future."
  9. Workers can lodge their salary claims directly with MOM's Labour Relations Department by making an e-appointment online at the MOM website or call 6438 5122.