The Ministry of Manpower (MOM) recently issued the Employment Standards Report 2023 depicting the state of employment claims in Singapore for 2023.
While there was generally a higher incident of employment claims – for both salary claims and wrongful dismissal claims – they remained with pre-COVID levels in 2019. Here are 5 stats you should know in the latest Employment Standards Report 2023.
#1 More Employment Claims Were Lodged In 2023
A total of 9,397 employment claims and appeals were lodged with MOM and the Tripartite Alliance for Dispute Management (TADM) in 2023. This was rose from 1.97 to 2.53 per 1,000 employees in 2023.
While the number of claims and appeals was higher year-on-year, it is still below pre-COVID period in 2019 – when 3.04 per 1,000 employees lodged an employment claim or appeal.
Despite the higher volume of employment claims lodged, 80% of them were resolved at TADM – with more than 90% fully recovering salaries and payments at TADM and the Employment Claims Tribunal (ECT). The minority of employers who were unable to pay were mostly due to financial difficulties.
#2 Salary Claims Rose To 2.19 Per 1,000 Employees In 2023
The overall incidence of salary claims rose from 1.68 to 2.19 per 1,000 employees in 2023. As we can see in the chart, this was still lower than the pre-COVID level in 2019. Another observation is that foreign employees were 3 times more likely to face a salary claim compared to local employees.
Among local employees, those in the Wholesale & Retail Trade, Food and Beverage Service Activities and Information & Communications sectors, were most likely to be affected.
Foreign employees in the Construction sector were most likely to be affected. In particular group claims from Construction firms facing business failures, financial difficulties or undergoing liquidation were more prevalent.
Overall, the median duration of salary arrears for claims lodged in 2023 was 1 month for local employees and 2 months for foreign employees. The top 3 claims for local employees were for basic salary, salary in lieu of notice and encashment of unconsumed annual leave. Meanwhile, the top 3 claims for foreign employees were for basic salary, salary for overtime work and salary for work done on rest days and public holidays.
#3 About 9 In 10 Salary Claims Resolved At TADM
A rising proportion of salary claims were resolved at TADM, with the remaining referred to the ECT for adjudication. Of the claims resolved at TADM, 90% of it were concluded within 2 months.
Overall, 94% of employees fully recovered their salaries at TADM and ECT, while 4% recovered their salaries partially through settlement payments from security bond insurers and main contractors or were assisted through financial assistance for lower-wage workers under the Short-Term Relief Fund (STRF) or Migrant Workers’ Assistance Fund (MWAF). The remaining 2% who did not recover any salaries were mainly higher income earners.
Employers who did not fully repay employee salaries were not allowed to apply or renew work passes for foreign employees until they rectified payments. Fewer than 1% of the salary claims lodged in 2023 involved wilful employers who refused to make full payment for salary arrears despite having the means to do so. MOM will investigate such employers to take enforcement actions.
In total, the sum recovered to employees was $14 million in 2023.
#4 Wrongful Dismissal Claims Also Rose In 2023
Wrongful dismissal claims rose from 0.26 to 0.32 claims per 1,000 employees in 2023. Current levels remain slightly elevated from pre-COVID period.
#5 Only 7 In 10 Wrongful Dismissal Claims Were Resolved At TADM
70% of the wrongful dismissal claims were resolved at TADM, with the remaining referred to ECT for adjudication. 79% of these were resolved with 2 months and the rest were concluding between 2 and 6 months.
In 56% of the cases that were resolved at TADM, employers were found to have fulfilled their contractual or statutory obligations. The remaining 44% involved some form of settlement by the employer, including making goodwill payments, allowing employees to resign, issuing certificates of service or clearing up miscommunications.
Total payments by employers to employees amounted to $1.72 million.
Digital Services To Improvement Dispute Resolution
Since August 2023, EmPOWER, and end-to-end digital services platform, has enabled employers and employees to navigate dispute resolutions more quickly.
An integrated chatbot provides personalised advice on employment matters, diagnoses issues and options, calculates claim amount and assists to e-file an employment claim.
At the first stage, employers and employees are encouraged to resolve their disputes privately via e-Negotiation. Features such as guided questioning and e-calculators empower both parties to reach a fair settlement without mediation. 166 out of 438 eligible claims were resolved this way from October to December 2023.
An e-Mediation feature allows both parties to work with a mediator virtually via a chat and upload and video conferencing functions. Parties are able to sign Settlement Agreements digitally, and at their convenience, since March 2024.
A personalised dashboard also allows both employers and employees to track the progress of the employment claim and take prompt actions.
Mandatory Flexible Work Arrangements (FWA) To Come Into Play On 1 Dec 2024
Come 1 December 2024, the Tripartite Guidelines on Flexible Work Arrangement Requests will take effect. This will shape the norms and expectations around flexible work arrangements by setting out how employees should put forward their FWA requests, and how supervisors and employers should handle such requests.
While the report states that resources and training will be available through TAFEP and the Institute for Human Resource Professionals (IHRP), it is likely that there may be teething issues – and that employment claims may rise in 2025.
Read Also: Guide To Creating A Flexible Work Arrangements Framework For Your Company
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