Stern Warning Issues to Twelve Cupcakes for Non-Payment of Salaries

The Ministry of Manpower (MOM) has issued a stern warning to Twelve Cupcakes Pte. Ltd. (“Twelve Cupcakes”) for the non-payment of salaries to 80 employees, following its closure on 29 October 2025 and subsequent liquidation.

Update on investigations 

2 Investigations by MOM revealed that Dhunseri Ventures Limited ("Dhunseri Group"), the parent company of Twelve Cupcakes, had placed the company into liquidation on 29 October 2025 after determining it could not meet its obligations on a sustainable basis due to an acute cash-flow shortfall. 

3 Prior to the liquidation, the Dhunseri Group had paid salaries in full to their employees up to September 2025 despite prolonged operating losses. Twelve Cupcakes was only informed by the Dhunseri Group of its plans to place the company in liquidation on 28 October 2025, one day before the closure on 29 October 2026. Once Twelve Cupcakes’s management became aware of the liquidation, the Food Drinks and Allied Workers Union (FDAWU) was notified on the same day. 80 employees were not paid their salaries for work done from 1 to 29 October 2025, which were due on 7 November 2025. 

Enforcement Action against Twelve Cupcakes 

4 All companies that operate in Singapore must comply with the Employment Act (EA), including making timely payment of their employees’ salary. Should there be a breach of the EA, MOM considers the specific circumstances of each case when determining the appropriate enforcement action. These include the reasons for the salary non-payment, the company’s track record in meeting salary obligations, and whether it had acted responsibly. 

5 Based on the facts gathered from the investigations, MOM assessed that this was a case of genuine business closure arising from severe financial distress, rather than a deliberate attempt to evade salary obligations. In addition, a liquidator has been appointed to manage the company’s affairs, including the distribution of remaining assets to creditors in accordance with the Insolvency, Restructuring and Dissolution Act 2018. Under the Act, employees’ salary claims are ranked ahead of all other unsecured debts. MOM therefore determined that a stern warning was the appropriate enforcement action in this case.

6 MOM and FDAWU had assisted the former employees by linking them up with the National Trades Union Congress (NTUC)’s Employment and Employability Institute (e2i) to provide job matching support and career coaching. The Tripartite Alliance for Dispute Management (TADM) has also worked with the FDAWU to assist 45 affected employees who are mainly union members to file claims with the liquidator to recover owed salaries.

Advisory to Employers 

7 In the event that business closure is inevitable, companies should conduct the exercise in a responsible and sensitive manner. Under the Employment Act, employers must ensure that all salaries are paid to employees. 

8 Employers should provide early communication to employees on the efforts to manage business challenges and the need for business closure, to give employees time to plan and adjust. If the company is unionised, the union should be notified early, before the affected employees are notified. 

9 Employers should also submit an early alert to MOM, to allow Workforce Singapore and NTUC’s e2i to reach out with information on government assistance schemes and employment facilitation support for affected employees.