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Employer in Singapore fined $17.5k for failing to pay salaries

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In the State Courts today, Raycom Engineering & Aerospace, was convicted and sentenced to a total fine of $17,500, for failing to pay salaries to the employees.

The Ministry of Manpower (MOM) stated that the metal precision components manufacturer faced a total of 14 charges for failing to pay salaries to its employees. The company was convicted of five of the charges, with the remaining nine being taken into consideration for the purpose of sentencing.

In addition, MOM has debarred the company from employing foreign workers.

Case facts

In July last year, MOM initiated investigations after receiving a complaint that Raycom Engineering & Aerospace defaulted on its workers’ salaries from March 2016 to May 2016.

Thankfully, 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.

Raymond Tan Choon Guan, director of employment standards enforcement, said: “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,” he emphasised.

Enforcement actions against employers for Employment Act violations

Under the Employment Act, it is an offence for employers not to pay salary for work done within seven days after the last day of the employee’s salary period. First-time offenders can be fined up to $15,000 or imprisoned up to six months or both while repeat offenders could be fined up to $30,000 or imprisoned up to one year or both.

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