HOME welcomes the news that more employers have been taken to task for salary-related offences (“645 employers taken to task for salary-related offences last year”; May 12, online).
This is an improvement from 2009, when the Ministry of Manpower (MOM) prosecuted four employers for salary arrears, as disclosed in its Universal Periodic Review report to the United Nations, even though it received approximately 3,700 salary-related claims.
However, we are concerned that one-third of workers with claims at the Labour Court did not receive full payments.
Our experience shows that many face difficulties enforcing orders awarded in their favour, as they are required to pay hundreds of dollars up front in administrative fees.
HOME has also observed that some employers declare bankruptcy to avoid payment, only to set up a new company under another name to escape responsibility. The MOM and Finance Ministry should monitor such employers closely.
To address these difficulties, the MOM could stipulate that the employer pay the arrears to the Labour Court in escrow, which would in turn be paid to the worker.
Employers are less likely to default on payments to be made directly to the court, as they would be unable to take advantage of the worker’s inadequate resources to enforce an order. Failure to comply would result in a penalty.
We recognise that some bankrupt companies experience genuine financial difficulty. In such situations, HOME recommends that the MOM creates a fund for workers who are owed wages due to insolvency.
This can be financed by corporate taxes or foreign worker levies. Hong Kong’s Protection of Wages on Insolvency Ordinance is one such measure. Singapore should consider implementing something similar.
Salary claims adjudicated by the Labour Court can take time, and workers are often bereft of income during this period. The MOM should allow them to switch employers or undertake temporary employment.
Employers who exploit migrant workers by not paying statutory rates for overtime or work done on public holidays and rest days must be prosecuted, as these are among the most common violations.
Justice can only be served when we have measures that deter poor employer behaviour through prosecution, and policies that guarantee social support to workers while they pursue a claim.
Ultimately, a compensation regime that adequately addresses wage loss for the wrongs done to employees is necessary if we are to treat our migrant workforce with the respect that they deserve.
