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Overall, the incidence of employment claims and appeals lodged increased slightly, from 1.73 per 1,000 employees in 2021 to 1.97 in 2022.
Singapore reported low incidences of employment claims and appeals in 2022, indicative of employers' and employees' ability to resolve issues amicably. At the same time, more than 80% of employment claims were resolved at mediation and majority were concluded within two months at the Tripartite Alliance for Dispute Management (TADM).
Further, more than 90% of employees fully recovered their salaries and payments. The minority of employers who were unable to pay salaries were those found to have financial difficulties.
The above data was revealed in the Employment Standards Report 2022, released by the Ministry of Manpower (MOM) and TADM today (25 July 2023). The report highlighted the state of Singapore's employment standards in 2022; as well as detailed tripartite efforts to resolve employment disputes and improve the dispute resolution process through digitalisation.
Overall, the incidence of employment claims and appeals lodged with MOM and the TADM increased slightly from to 1.97 per 1,000 employees in 2022, up from 1.73 in 2021. These figures, however, remained lower than the pre-COVID period (2019: 3.04 per 1,000 employees). The increase is observed for both local and foreign employees, which the report partly attributes to more challenging economic conditions in 2022.
Specifically, a total of 7,140 employment claims and appeals were lodged with MOM and TADM in 2022. Of these, 4,079 (57%) were lodged by local employees while the remaining 3,061 (43%) were lodged by foreign employees. Most of the claims and appeals were salary claims (6,123), followed by dismissal claims (946).
Salary claims
The overall incidence of salary claims increased to 1.68 per 1,000 employees in 2022, compared to 1.43 2021, but remained lower than the pre-COVID period in 2019 (2.68 per 1,000 employees).
Among local employees, the incidence of salary claims increased to 1.29 per 1,000 local employees in 2022 (2021: 1.16 per 1,000 local employees). This was partly driven by an increase in salary claims by local employees in the following sectors:
- Information and communications,
- Construction,
- Administrative & support service activities sectors.
These sectors saw a higher proportion of group claims from companies that experienced business failures or financial difficulties, the report noted.
On the other hand, the incidence of salary claims among foreign employees increased to 2.53 per 1,000 employees in 2022 compared to 2.10 in 2021. This was driven by an increase in salary claims in the construction sector — particularly, group claims from construction firms facing business failures, financial difficulties or undergoing liquidation.
Comparing the two, the incidence of salary claims has remained higher for foreign employees compared to local employees, but lower than pre-COVID period (2019: 4.98 per 1,000 foreign employees). The median duration of salary arrears for claims lodged in 2022 was one month for local employees and two months for foreign employees, similar to 2021.
The top four claim items lodged by local and foreign employees are as follows, which remained consistent over the years:
Local employees:
- Basic salary (66%)
- Salary-in-lieu of notice (29%)
- Encashment of unconsumed annual leave (20%)
- Salary for overtime work (9%)
Foreign employees:
- Basic salary (84%)
- Salary for overtime work (39%)
- Salary for work done on rest days and public holiday (21%)
- Salary-in-lieu of notice (9%)
Collectively, they accounted for 92% of all salary claims lodged in 2022.
Looking at the timeline at which claims were resolved, nine in 10 salary claims were concluded expeditiously within two months at TADM, it was shared. As a whole, 86% of salary claims were resolved at TADM, with the remaining 14% referred to the Employment Claims Tribunals (ECT) for adjudication.
Of the salary claims lodged in 2022, 93% of the employees fully recovered their salaries at TADM and ECT, similar to 95% in 2021. Of the remaining, 4% recovered their salaries partially through settlement payments from security bond insurers or main contractors, or assisted through financial assistance for lower-wage workers under the Short-Term Relief Fund (STRF) or Migrant Workers’ Assistance Fund (MWAF). Lastly, 3% did not recover any salaries and were mainly higher income earners.
MOM also suspended the work pass privileges of all employers who did not fully repay their employees — as reported, less than 1% of the salary claims lodged in 2022 involved wilful employers who refused to make full payment for the salary arrears despite having the means to do so.
Overall, the total recovered sum to employees increased to S$12mn in 2022, from S$8.6mn in the previous year.
Wrongful dismissal claims
Next, the incidence of wrongful dismissal claims was 0.26 claims per 1,000 employees in 2022, similar to the 0.27 claims made in 2021.
The number of incidences was higher for local employees (0.33 claims per 1,000 local employees) compared to foreign employees (0.11 claims per 1,000 foreign employees).
Of the wrongful dismissal claims assessed by TADM, about 25% of wrongful dismissal claims lodged were assessed to be substantiated. For such cases, TADM worked with the employer to address the claim, such as clearing up any miscommunications and/or assisting in the employee’s job search, or facilitating reasonable compensation to the affected employee. In 2022, 70% of these claims were resolved at TADM, while the remaining 30% were referred to ECT for adjudication.
For the remaining 75% of claims that were assessed to be unsubstantiated, these claims mainly involved disputes over work performance or arose due to miscommunication between the employers and employees. Of these, 63% of these claims were resolved at TADM, with the remaining 37% referred to ECT for adjudication.
Most (84%) wrongful dismissal claims were concluded at TADM within two months. According to the report, the total payment by employers to employees amounted to about S$1.29mn.
As a whole, MOM and TADM noted: "We continue to have a high level of compliance with employment standards as a result of sustained efforts in safeguarding employment standards and resolving disputes. Employers continue to be responsible by paying employees in accordance with the law and adopting progressive HR practices. Both employers and employees are prepared to resolve disputes amicably at mediation to maintain a harmonious workplace.
"MOM, TADM, and TAFEP (The Tripartite Alliance for Fair and Progressive Employment Practices) remain committed to safeguarding employment standards through effective dispute resolution, education of both employees and employers on their rights and obligations, and strong enforcement actions where necessary. We will continue to work closely with tripartite partners (NTUC and SNEF) to build better workplaces with the greater adoption of inclusive and progressive workplace practices."
NTUC Assistant Secretary-General Patrick Tay added in a Facebook post: "While number of salary claims and wrongful dismissal claims are higher than 2021, workplace fairness has improved over time with cases to TAFEP reducing. The higher claims correspond with the pick up in layoffs and terminations since the latter half of 2022.
"The efforts to train up HR professionals via IHRP certifications and enhance their knowledge on compliance for fair and progressive employment practices as well as employee communications is important and must continue. Employers must continue to be responsible and fair to workers."
Lead image / Employment Standards Report 2022
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