Manufacturing firm fined S$17,500 for failing to pay workers’ salaries

SINGAPORE: A firm that manufactures metal precision components was convicted on Thursday (Mar 23) for failing to pay salaries to five of its employees, the Ministry of Manpower (MOM) said in a press release. 

Raycom Engineering & Aerospace was fined S$17,500 for failing to pay about S$30,000 in salaries as well as corresponding Central Provident Fund (CPF) contributions to the local employees from March to May last year. It was also barred from employing foreign workers, MOM said.

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The ministry said it started investigating the company in July last year after receiving a complaint. Raycom faced 14 charges of defaulting on salary payments and was convicted of five, with the other nine taken into consideration for sentencing.

It added that it has since helped all five affected workers recover their salary arrears and CPF contributions.

It is an offence for an employer not to pay salaries 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 S$15,000 and imprisoned up to six months, while repeat offenders can be fined up to S$30,000 and imprisoned up to one year.

According to MOM Director of Employment Standards Enforcement Raymond Tan, the ministry has convicted 158 employers for salary-related offences in the past three years.

“MOM will take strong actions against those employers who have no respect for our employment laws,” he said.

Anyone who knows of employers who have contravened the Employment Act can report anonymously to the WorkRight hotline at 1800-221 9922 or email workright@mom.gov.sg.

Workers can improve their chances of recovering their salaries if they report cases to MOM or its unions early, the ministry said.

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