Fine for couple whose catering companies owed $432,000 in salaries to 103 employees
According to court documents, the companies owed 103 employees $432,870.63, of which $73,420 was eventually paid.
SINGAPORE – A couple who ran various catering services, including Royal Cuisine Group and Tingkat Singapore, were fined for failing to pay salaries to their employees.
Wu Wenchun, 37, and Sim Ling Zhen, 31, were each fined $72,000 after they each pleaded guilty to 12 charges for the failing to pay salaries under the Employment Act. If they do not pay the fine, they would each be jailed for 66 weeks.
Another 12 similar charges and a charge for failing to report their change of residence were taken into consideration during each of their sentencings.
According to court documents, the companies owed 103 employees $432,870.63, of which $73,420 was eventually paid.
The Ministry of Manpower (MOM) said on July 25 the workers were employed by three companies: Royal Cuisine Group, Yanxi and Healthy Meals Catering.
Sim was the director, while Wu was the general manager of these companies, which operated several catering services under the brand names Royal Cuisine Group, Tingkat Singapore, Angel Confinement Meals, Happy Mamapapa Catering and Vegetarian Buffet, as well as the former restaurant Yanxi in Chin Swee Road.
These catering brands, which Sim and Wu had actively managed, had been earlier reported by members of the public in 2022 over their failure to fulfil meal orders, MOM said.
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Ms Justine Loh, a senior prosecuting officer with MOM, said in court documents that the ministry received a complaint from a Royal Cuisine employee on July 20, 2022, that salaries had not been paid.
Investigations showed that Mr Low Ting Hui, an investor who provided funds for the companies to operate and pay their staff, ceased his cash funding to the companies some time in October 2022 due to disagreements with Wu and Sim over the business direction of the companies, including how the monies were spent, said Ms Loh.
Without funding from Mr Low, the companies ran into cashflow issues.
'Despite meeting cashflow issues and knowing that there would be difficulty in paying salaries to the employees, Wu and Sim decided to continue operating the companies, continue the employment of the employees, and opening other new businesses,' Ms Loh said.
MOM said the companies' premises were closed by the landlords in December 2022 due to rental arrears.
The ministry added that Sim and Wu failed to fully inform the employees of the companies' situation and disregarded their concerns even after the closures, resulting in the 103 employees being left stranded without pay for up to three months.
It said the couple were uncooperative when employees sought assistance from MOM and the Tripartite Alliance for Dispute Management.
'They failed to attend mediation sessions, repeatedly missed appointments, and did not provide their most current residential address during investigations,' said MOM.
It added that despite being provided with ample time to make salary restitutions to the affected employees, Sim and Wu Wenchun did not make appreciable efforts to do so.
MOM said most of the affected local workers have since found new employment, and that the Tripartite Alliance for Dispute Management had helped them , including providing them with financial assistance and linking them up with NTUC's Employment and Employability Institute.
Under the Employment Act, employers convicted for failing to pay salaries can be jailed for up to six months, fined between $3,000 and $15,000 or both.
If the employer s are repeat offende rs , they can be jailed for up to 12 months, fined between $6,000 and $30,000 or both.
MOM said it takes a serious view of the non-payment of salaries and that it will continue to take firm action against errant offenders who fail to comply with employment laws.
It added that members of the public who are aware of suspected employment law contraventions such as non - payment of salaries should report the matter via its eService 'Report an infringement' as soon as possible.
All information provided will be kept strictly confidential, MOM said.
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