MOM Helped Recover $800,000 in Salary Claims This Year

AsiaOne ran this article on 8 June 2009:

MOM helped recover $800,000 in salary claims this year

In the first quarter of this year, the Ministry of Manpower (MOM) helped 750 local workers recover about $800,000 in claims.

Since its inception in 1968, MOM's Labour Court has served an important function in enabling workers with valid claims to seek a quick resolution without incurring high costs.

The Labour Court heard around 490 cases, for which Orders were issued for payments to be made to workers. For the remaining cases, employers reached out-of-court settlements with their workers.

Salary in lieu of termination notice

One such case involved in Dec last year involved a company which terminated the services of four employees, without paying their salaries in lieu of termination notice.

The company also owed salaries to three of them, ranging from $1,700 to $6,000.

Upon inquiry by the ministry, the employees were eventually paid the full amount they were owed in May this year.

Employers are reminded that notice periods in employment contracts provide time to the affected party to prepare for the cessation of the employment relations. If employers intend to vary the terms of the employment contract, this should be communicated clearly and put in writing.

Paid sick leave and unauthorised salary deduction

Another case involved a worker in a childcare centre who took eight days of hospitalisation leave in Dec last year, and also further hospitalisation leave in Feb and Mar this year. The employer failed to pay her salaries in Feb and Mar, and also deducted the eight days of hospitalisation leave in 2008 from her salary in Jan 2009.

Under the Employment Act, an employee is entitled to pay sick leave if he has served the employer for at least 3 months.

Annual leave, sick leave and termination notice

In another case, a worker was terminated while he was on hospitalisation leave, and offered $2,800 as settlement, with no explanation given as to how sum was arrived at.

The Labour Court informed the employer that his full obligation to the worker upon terminating his services should have been around $5,300. The full termination payment was eventually paid to the employee.

MOM advisory

Workers are advised to refer to their obligations and rights in their employment contracts and the Employment Act.

If they feel that the law has not been complied with, they may approach the Ministry for advice and assistance. They can also make an e-appointment through the MOM website at www.mom.gov.sg or contact MOM at 6438 5122.