This is the first time an employer has been prosecuted for this type of charge in Singapore.
In December 2012, the director fell down a flight of stairs, injuring himself. In March 2014, Lyon & Dianzi was ordered by the Assistant Commissioner to pay around $18,000 to the employee for medical leave wages and medical expenses. After failing to pay this compensation, the employer was then prosecuted under the Work Injury Compensation Act (WICA).
Under WICA, employers are not required to have insurance for non-manual employees earning more than $1,600 per month. However, they still remain liable to pay compensation if a valid claim is filed by any employees injured during the course of work.
“Employers are encouraged to purchase work injury compensation insurance for all employees and ensure that the insurance policy is adequate to cover eligible claims under WICA,” Kee Ee Wah, director of the work injury compensation department of MOM said in a statement. “We will not hesitate to act against employers who do not discharge their responsibility to injured employees.”
The State Courts have fined an employer, Lyon & Dianzi, $8,000 after it failed to pay work injury compensation awarded to a senior art director working at the company.