Ministry says prevalence of misclassification to avoid paying overtime pay remains low in Singapore
The Ministry of Manpower (MOM) has reported that misclassification of employees to avoid paying overtime remains low, with an average of 45 claims per year received by the Tripartite Alliance for Dispute Management (TADM) over the past three years.
Of these cases, 30% were found to be valid, and employers were advised to provide due compensation.
However, MOM emphasized that job titles alone are not the determining factor in these investigations. Instead, cases are assessed based on the actual job scope, including the employee’s decision-making authority in managing business functions.
To ensure compliance with overtime regulations, MOM conducts regular Workright outreach campaigns and roughly 5,000 inspections annually.
Employers found in violation of the Employment Act may be required to attend Employment Act clinics for training and rectification. In more serious or systemic cases, MOM will take strong enforcement actions, including fines and prosecution.
Time and attendance records of an employee's hours of work are crucial for ensuring that employees are correctly compensated for their time, say two legal experts.
While MOM has not conducted specific studies on the impact of non-compliance with overtime laws on worker burnout, it has implemented legislative safeguards to protect employees' well-being. These include:
MOM reiterated its commitment to ensuring fair employment practices and preventing workplace fatigue through regulatory enforcement and proactive engagement with employers.