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Employer convicted for failing to pay salaries to the employees

  1. In the State Courts today, Raycom Engineering & Aerospace Pte. Ltd., [“the accused company”] which manufactures metal precision components, was convicted and sentenced to a total fine of $17,500, for failing to pay salaries to the employees.
  2. In total, the accused company faced 14 charges for failing to pay salaries to its employees. The accused company was convicted of five proceeded charges with nine charges taken into consideration for the purpose of sentencing. In addition, the Ministry of Manpower (MOM) has debarred the company from employing foreign workers.

    Facts of the Case
  3. In July 2016, MOM initiated investigations into the accused company after receiving a complaint that the accused company defaulted on its workers’ salaries from March 2016 to May 2016. MOM has since assisted all five affected local workers to recover their salary arrears, amounting to about $30,000, and the corresponding CPF contributions for the three months.

    Enforcement Actions Against Employers for Employment Act Violations
  4. It is an offence for an employer not to pay salary for work done within seven days after the last day of the employee’s salary period. A first-time offender can be fined up to $15,000 or imprisoned up to six months or both. Repeat offenders could be fined up to $30,000 or imprisoned up to one year or both.
  5. Mr Raymond Tan Choon Guan, Director of Employment Standards Enforcement, (陈俊源, 人力部雇佣标准执法处处长) says, “We expect all employers to pay salaries on time. In the last three years, 158 employers have been prosecuted and convicted for salary-related offences. MOM will take strong actions against those employers who have no respect for our employment laws”.
  6. We urge workers who have not been paid their salaries or feel that their wages have been wrongfully withheld to come forward early to MOM or their unions for assistance. This will improve the chances of salary recovery.
  7. Workers or members of the public who know of persons or employers who contravene the EA should report to MOM directly or call WorkRight hotline at 1800-221 9922 or workright@mom.gov.sg. All information will be kept strictly confidential.