MOM says it will look beyond individual companies when investigating wage non-payment linked to a common director
Singapore's Ministry of Manpower has confirmed it will pursue enforcement action against company directors across all entities they control when salaries go unpaid, a policy stance that emerges from the recent KPA Engineering wage scandal.
Responding to questions filed in Parliament, MOM said it would not limit investigations to the company where a breach was first identified.
"When investigating a company, if the director is found to be in breach of employment obligations, MOM will typically investigate other companies under the same director," the ministry said.
"If there is non-payment across multiple companies, the director can be subject to penalties for all cases, and all instances of non-payment will be considered in meting out penalties."
MOM added that it would "look beyond individual companies to examine who exercises effective control over employment and payment decisions, and take enforcement action accordingly."
Salary non-payment scandal
The ministry's remarks were prompted by the case involving KPA Engineering, SK Industries, and VVR Plant Engineering after 407 salary claims were filed by affected migrant workers.
Investigations into the three companies for possible breaches of the Employment Act and the Employment of Foreign Manpower Act are ongoing.
The three firms share a common director, Ramu Palani Velu, who returned to Singapore after it was reported that he was out of the country. Velu, who now has his passport impounded, is assisting with the investigations, Channel News Asia reported.
"MOM will thoroughly investigate the case and decide on appropriate enforcement actions after investigations have been completed," the ministry said.
As of July 7, more than 130 of the affected workers have found jobs with new employers. MOM said it has also re-housed all workers who required alternative accommodation and issued Special Passes to allow them to remain in Singapore while searching for new employment.
The Tripartite Alliance for Dispute Management has processed the majority of salary claims, referring affected workers to the Migrant Workers' Centre (MWC) for financial assistance.
MOM said it will continue working with the MWC and the Singapore Contractors Association to facilitate job transfers for the remaining workers who wish to continue working in Singapore.
Under the Employment Act, employers who fail to pay salaries may face fines of between $3,000 and $15,000 per charge, imprisonment of up to six months, or both.
Monitoring salary-related risks
Meanwhile, MOM also outlined how it monitors salary-related risks before cases escalate, citing indicators including worker feedback, salary claims, late payment patterns, levy defaults, and other signs of financial or employment irregularities.
"Where these indicate a pattern of delayed or unpaid salaries, MOM conducts targeted inspections to identify if there have been any employment breaches," the ministry said.
It further drew a distinction between employers facing genuine short-term cash flow difficulties and those engaged in deliberate evasion.
"Where employers face genuine difficulties and act responsibly to resolve them, we give them a chance to resolve their issues and make good their obligations," MOM said. "However, where there is deliberate or prolonged evasion or misuse of corporate structures, we will take firm action."
MOM said it would continue to review and strengthen its processes, incorporating lessons from the ongoing case.
