190 Employers Were Found Underpaying Foreign Workers’ Salary from 2015 to 2019

There are many ways in which an employer can take advantage of their employee:

• making them feel guilty for using the bathroom
• making them feel guilty for leaving work
• making them feel guilty for feeling guilty

Boss: I feel like you’re hinting at something but I’m not quite sure what it is. Either way, you should feel guilty. 

One way some employers exploit their workers is by underpaying them, and this has been happening more and more lately.

190 Employers Were Found Underpaying Foreign Workers’ Salary from 2015 to 2019

Around 190 employers were found to have underpaid their foreign employees between 2015 and 2019.

This, according to Manpower Minister Josephine Teo, is more than triple the yearly average in the previous five years.

Between 2010 and 2014, only sixty employers were dealt with for such offences.

So, what accounts for the increase?

Mrs Teo explained that the rise in cases was due to Ministry of Manpower’s (MOM) improved detection capabilities.

There has also been increased education to encourage foreign employees to report salary irregularities.

Mrs Teo was responding to a parliamentary question from Mr Faisal Manap, MP for Aljunied GRC and Non-Constituency MP Leong Mun Wai.

Mr Faisal had asked about the incidence of such cases in the last 5 to 10 years, while Mr Leong had inquired about the main methods used in such cases.

Some offending employers simply pay their workers a lower wage, while others first credit their full salaries before instructing them to return a portion later on.

And this is exactly what one former radio DJ did.

Twelve Cupcakes Founders Daniel Ong and Jamie Teo Charged for Underpaying Employees

On 29 Dec last year, Twelve Cupcakes founders Daniel Ong and Jamie Teo were charged for offences under the Employment of Foreign Manpower Act, after their pastry company underpaid its employees.

Ong and Teo face 24 charges each, according to ST.

The pair founded the company back in 2011 and sold it to the Kolkata-based Dhunseri Group for $2.5 million in 2016.

It was only after the takeover that their offences came to light.

It was discovered that seven employees, all of whom were S-Pass holders, were being underpaid.

Initially, Twelve Cupcakes credited the slashed salaries to the employees’ bank accounts.

But then the company tried something a little more devious.

Instead of underpaying them immediately, the workers were paid their full salary from May 2018 onwards.

The company later told the employees they had to return a portion of the money to the firm.

Founder Claimed He Wasn’t Aware of Offences

In an Instagram post last December, Ong claimed he wasn’t aware of the offences at first.

“Being dragged into a case from 2012-2016 where an errant 3rd party agent we used to hire foreign workers submitted documents and salaries we were not aware of till 2019, but as directors of the company, liable.”

 

View this post on Instagram

 

A post shared by Daniel Ong (@daniel_ong_singapore)

Jamie Teo has not yet responded publicly to this.

The manpower ministry will continue to monitor firms and take strong enforcement against offending employers and those who abet such offences.

To know more about your salary, you might want to watch this video to the end (and please subscribe to our YouTube channel for more informative videos!):

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