Errant bosses have been labelling staffers ‘self-employed’ to avoid providing benefits like CPF contributions
.jpg)
In the last three years, the Ministry of Manpower (MOM) received over 308 alleged cases of workers being misclassified as “self-employed”.
Self-employed individuals are not entitled to mandatory employee benefits such as CPF contributions.
Errant companies have been punished with, among other things, warnings and late payment fees, Zaqy Mohamad, Minister of State for Manpower and National Development said in parliament last week.
He also said all but two cases paid the misclassified workers what were due to them, including overtime pay and CPF contributions.
The two were prosecuted, with one of them settling the case out of court while the other is appealing against the conviction.
“Rest assured that MOM and CPF will investigate the cases...to ensure that employers make good their obligations and to pay affected employees what are due to them,” Mohamad said.
Casual work employees comprise 3.4% of resident employees in 2018, down from 5.1% in 2009.
The minister said casual workers are covered by various laws, including the Employment Act and CPF Act. They are entitled to timely payment of salary, CPF and protection against wrongful dismissal. Workers who are employed for at least three months are also entitled to paid annual and sick leave.
On the flipside, last year a labour leader warned HR against inflating employee’s job titles to that of professional, manager or executive to avoid paying overtime. To read the story, click here: HR warned against inflating employee job titles
