WWLegal.com :: Employer and Director convicted and fined $18,000 for failing to pay salaries

Employer and Director convicted and fined $18,000 for failing to pay salaries
Posted on Wednesday, September 07, 2005 - 12:00 AM

In a rare prosecution, the Ministry of Manpower brought to court a company and its director for failing to pay workers salary.

The MOM press release states:

Everlink Travel Service Pte Ltd and its director, Teo Yong Leng were convicted and fined in Court on 1 Sep 2005 for failing to pay salaries to an employee for 22 months. The director was convicted for consenting to the commission of the offences by the company. Everlink Travel Service Pte Ltd was ordered to pay a total fine of $13,000, the highest fine imposed on a company so far for failing to pay salaries. The director was ordered to pay a total fine of $5000, failing which he would face 10 weeks imprisonment. The Court also agreed for the fines recovered to be paid to the employee as recovery of his arrears in salary of $13,859.60.

Facts of the Case

2. The Ministry of Manpower?s Labour Relations Department received a complaint from one of Everlink?s employees, that he had not been paid his monthly salaries for the period July 2001 to April 2003.

3. Investigations revealed that Everlink Travel Service Pte Ltd had violated the Employment Act for 22 months from July 2001 to April 2003 for failing to pay the monthly salary due to the said employee before the expiry of the 7th day after the salary period.

Salary must be paid within 7 days

4. Under the Employment Act, the salary earned by an employee for work done must be paid within 7 days after the salary period. It is an offence under section 21 of the Act for an employer not to pay salaries within the 7 day period. If found guilty, the employer can be fined up to $1,000 or imprisoned for up to 6 months or both, for each offence.

5. The Ministry would like to remind all employers to pay salaries to their employees on time. The Ministry will take action, including prosecution, against any employer who has violated the law.

6. Employees who have been not been paid their salaries can take up their cases through their unions or directly with MOM.

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