Employer convicted for failing to pay salaries

by HRD27 Mar 2017
State Courts convicted Raycom Engineering & Aerospace on Friday for failing to pay salaries to employees and sentenced the firm to a total fine of $17,500, according to the Ministry of Manpower (MOM).

“In total, the accused company faced 14 charges for failing to pay salaries to its employees. The accused company was convicted of five proceeded charges with nine charges taken into consideration for the purpose of sentencing,” MOM said. It has also prohibited Raycom from hiring foreign workers.

Raycom manufactures metal precision components. In July last year, MOM began investigating the company, after it received a complaint that Raycom defaulted on its workers’ salaries from March to May that same year.

“MOM has since assisted all five affected local workers to recover their salary arrears, amounting to about $30,000, and the corresponding CPF contributions for the three months,” the ministry said.

It is an offence for firms not to pay salary for work done within seven days after the last day of the employee’s salary period, according to MOM.

A first-time offender can be fined up to $15,000 or imprisoned up to six months or both. Repeat offenders could be fined up to $30,000 or imprisoned up to one year or both.

“We expect all employers to pay salaries on time. In the last three years, 158 employers have been prosecuted and convicted for salary-related offences, said Raymond Tan Choon Guan, Director of Employment Standards Enforcement

“MOM will take strong actions against those employers who have no respect for our employment laws”


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