High resolution at mediation stage continues, report reveals
The incidence of employment claims lodged in Singapore went up slightly in 2024, following increases in salary and wrongful dismissal claims.
Data from the Ministry of Manpower revealed the overall incidence of employment claims filed with MOM and the Tripartite Alliance for Dispute Management (TADM) increased to 3.12 per 1,000 employees in 2024, up from 2.53 in 2023.
"The increase is for both local and foreign employees," the report read.
But despite the increase in lodged claims, the resolution rate at mediation remained high, with more than 80% of employment claims resolved at TADM.
A total of 11,685 employment claims and appeals were lodged in 2024, including 5,420 from local employees and 6,265 from foreign employees.
According to the report, the rise in the incidence of employment claims follows increases in salary and wrongful dismissal claims.
"The rise in salary and dismissal claims reflects higher job turnover (from retrenchments, dismissals and business closures), and failure or delays in salary payments due to financial difficulties in recent years, rather than a decline in employment standards," the report read.
Salary claims lodged
The incidence of salary claims in Singapore increased to 2.63 per 1,000 employees in 2024, up from 2.19 per 1,000 in 2023.
Among local employees, the rate rose to 1.59 per 1,000, while for foreign employees, it climbed to 4.64 per 1,000.
"The top three claim items for local employees were basic salary, salary in-lieu of notice, and encashment of unconsumed annual leave," the report read. "For foreign employees, the top three claim items were basic salary, salary for overtime work, and payment for work done on rest days and public holidays."
Wrongful dismissal claims lodged
Meanwhile, wrongful dismissal claims also rose slightly to 0.46 claims per 1,000 employees in 2024, up from 0.32 in 2023.
The incidence rate was higher for local employees, with 0.56 claims, compared to foreign employees, with 0.27 claims.
"Employees and employers are encouraged to refer to the Tripartite Guidelines on Wrongful Dismissal for a better understanding of their employment rights and obligations, and to take steps to reduce misunderstandings through clear communication and grievance handling processes," the report read.
High resolution rate recorded
According to the report, 90% of salary claims were resolved at TADM in 2024, with the remaining 10% referred to the Employment Claims Tribunals (ECT).
More than nine in ten (94%) employees who lodged salary claims were also able to fully recover their salaries at the TADM and ECT.
The total recovered sum to employees reached $19 million in 2024, a major increase from the $14 million in the previous year.
"For employers who did not fully repay their employees, MOM did not allow them to apply or renew work passes for foreign employees until they rectified the payments," the report read.
When it comes to wrongful dismissals, 71% of cases were resolved at TADM, while the rest were referred to the ECT for adjudication.
"In 61% of the cases that were resolved at TADM, employers were found to have fulfilled their contractual or statutory obligations, or the cases were withdrawn after mediation," the report read.
"The remaining 39% involved some form of settlement by the employer such as making goodwill payments, allowing employees to resign, issuing certificates of service, or clearing up miscommunications."
