Assisted living firm fined for illegal employment practices

Company registered elderly clients as employers, subjecting them to 'unnecessary risks'

Assisted living firm fined for illegal employment practices

Assisted living firm Red Crowns Senior Living (RCSL) has been issued composition fines after illegal employment practices were found in its operating model.

The Ministry of Manpower (MOM) said the unlawful practices breached the country's Employment of Foreign Manpower Act.

"RCSL circumvented our foreign worker levy requirements," MOM said in a statement on Facebook.

"It also put legal responsibilities on their elderly clients as the employers of migrant domestic workers, when the clients did not have control over the work and welfare of these domestic workers."

The statement comes after the MOM announced a probe on RCSL's operating model in June 2023, citing "serious considerations" over it.

RCSL's previous operating model

RCSL's previous operating model registered their elderly clients as employers of migrant domestic workers, while the firm retained control over the employees' employment terms and deployment.

But Singapore's law states that employers of migrant domestic workers are responsible for their food, safety, medical care, job scope, accommodation, and rest arrangements.

"This subjected the elderly clients to unnecessary risks," MOM said in a previous statement. "For example, they would be held legally responsible if the MDWs sustained a work-related injury, failed to receive timely salary payment(s) or were not provided sufficient rest or accommodation."

MOM also found that some of the elder clients registered as employers appeared to be unaware of the liabilities.

Joshua Goh, RCSL's founder, previously told Channel News Asia that they couldn't hire staff under the S Pass or work permit because the company does not have enough staff who are citizens or permanent residents.

RCSL fined for violations

As a result of the breaches, MOM said it issued composition fines to RCSL and its directors but did not indicate the exact amount.

RCSL has also corrected its operating model, according to MOM.

"We have worked closely with Red Crowns Senior Living to correct its operating model and to ensure continuity of care for its existing clients under the new model," the ministry said.

"Nonetheless, they remained liable for the offences committed under its previous illegal operating model."

The organisation has since joined the Sandbox for Shared Stay-in Senior Care Services, which was piloted by the Ministry of Health and the Agency for Integrated Care with the support of MOM.

The sandbox explores a model where a migrant worker provides stay-in care for a few seniors in a residence or development to provide them with greater assurance of round-the-clock support.

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