Latest news with #workerrights
CNA
24-06-2025
- Business
- CNA
'It was all lies': What workers can do when employers pay wages late, or not at all
SINGAPORE: It has been more than eight months since Raymond (not his real name) received his full salary from his employer, TechTV Network, a media and events company. The man, in his mid-50s, has not been paid his monthly wage of S$9,000 (US$7,000) since October 2024. His Central Provident Fund (CPF) contributions stopped even earlier, in June last year. Instead, his employer has only given him irregular payments of up to S$1,000 at a time. Excluding CPF, his salary arrears currently amount to about S$55,000. Despite this, Raymond continued working, clinging to assurances from TechTV's founder and CEO Debbie Lee, who claimed that she was in the process of securing funds from unnamed 'stakeholders' to pay the workers. 'I am pushing through in the hope that the company will pay me, the company will get a larger tranche of funds, because I continue to bring in the deals, because that's the kind of hope she's giving,' he said. In emails to employees, Ms Lee attributed salary delays to a lack of sales made by the team. 'You can play a part to support the sales CF (cash flow) so that both yourself and the team can benefit with allocation,' she wrote. CNA also saw text messages Ms Lee sent to Raymond and other employees, in which she cited delays in banking procedures as reasons why funds were not available to pay them. 'It was always ridiculous, unbelievable reasons,' said Raymond, who recalled that a sick investor was once given as another excuse. Nonetheless, for months, he held out hope of being compensated. Over time, he had trouble footing his bills and mortgage. The stress took a toll on his health and sleep. He began to feel his employer had taken advantage of him. 'I now realise that it was all lies,' the father of one told CNA. 'I feel very angry I'm having financial difficulties.' CNA spoke to multiple employees of TechTV, who described similar experiences – unpaid wages, missing CPF contributions and persistent excuses. Theirs is a cautionary tale for workers experiencing salary irregularities. Non-payment of salaries may, as they did in TechTV's case, start out as wage delays. The situation can drag on if workers are persuaded to put the company's financial health ahead of their own, their salaries dangling just out of reach while they are asked to do more as the business supposedly seeks funding. TechTV is currently under investigation by the Ministry of Manpower (MOM) for possible offences under the Employment Act. Five employees, including Raymond, have filed salary claims and received assistance from the Tripartite Alliance for Dispute Management (TADM). TechTV is still in operation, and Raymond and his colleagues remain employees of the firm. When contacted about the salary arrears, Ms Lee said TechTV was in 'advanced and active discussions with various third parties' to 'generate fresh capital and cash flow' for operating expenditure and long-term growth. 'As the plans require the buy-in and contribution of third parties, this process requires more time to mature,' she said. She also pointed to external challenges, including a 'brutal and protracted VC (venture capital) winter' for start-ups and 'unfavourable capital macros'. LEGAL OBLIGATIONS TechTV used to run the esports channel TechStorm, which launched in 2019. The company billed itself as 'Asia's largest and fastest growing 24/7 media distribution platform' in esports. TechStorm went off air in late 2024. Raymond joined the company in September 2023. There were already 'a couple of hiccups' in the form of wage delays back then, he said, with the longest lasting one month. Under the Employment Act, employers must pay salaries within seven days after the end of each salary period. Failure to do so is an offence. Ms Jacqueline Chua, managing director of Jacque Law, said that even if an employee agrees to accept late or partial payments, this does not waive the employer's legal obligations. 'We have seen cases where even if an accused company claims that it had informed its employees of financial problems, and its employees willingly continued to work for it, MOM may still prosecute the company accordingly as offences were committed. 'The rationale for this position taken in the law likely stems from the uneven negotiating power between employer and employees,' said Ms Chua. Employers who fail to pay salaries on time can be jailed for up to six months or fined S$3,000 to S$15,000 for a first offence. Repeat offenders face double these penalties. Similarly, failing to make CPF contributions can lead to fines of S$1,000 to S$5,000, or up to six months in jail for a first offence. WHY EMPLOYEES STAY Career coach Dr Yvonne Kong-Ho said she has observed that mature workers like Raymond often stay in such roles out of loyalty. Their rationale for hanging on might be that 'my boss is really trying very hard' and 'I want to stay and support the boss', or 'there were times when they were good to me, so I should give them a chance'. She encouraged employees to document any delay or underpayment in wages. For example, if they talk to their manager about it, employees can follow up with an email noting down the points discussed. It would also be a good time for them to review their career plans and career capital – the skills, network and resources they have to find their next role, she said. When are employers allowed to withhold salaries? Withholding salary from employees without proper reason can be considered an unauthorised deduction, said Ms Chan of Jacque Law. The Employment Act expressly allows some deductions, such as for being absent from work, or for the loss of goods or money through the employee's neglect or failure. Any salary deduction made with the employee's written consent is also allowed. So if an employment agreement has a clause for non-payment or deduction if the terms are breached, that could be justified. Ms Chan said it is unlikely that underperformance – which does not equate to being absent – will justify withholding salary, unless it is agreed in writing in the employment agreement. Deductions must not exceed 50 per cent of the salary payable unless they are for: absence from work; recovery of a pay advance, loan or unearned benefit; adjustment for overpayment of salary; or payment to a cooperative society. Collapse GETTING WHAT THEY ARE OWED Through TADM's mediation, TechTV signed settlement agreements with the five employees who made claims, setting out the salaries owed that the company must pay back. The settlement agreements contain payment schedules that TechTV is supposed to follow. But Ms Lee has already defaulted on payments for at least one employee CNA spoke to, who did not want to be named. MOM and TADM said they encourage employees to file their claims early so that salary arrears do not accumulate. Employees can file salary claims of up to S$20,000 with TADM, or up to S$30,000 if their union files on their behalf. TADM assists with mediation or referral to the Employment Claims Tribunals. But even if a worker successfully obtains a court order for payment, there is no guarantee of recovering the salary arrears if the employer is insolvent or unable to pay, said Ms Chua, the lawyer. 'We would suggest that employees think twice and seek legal advice if they are faced with salary-related disputes,' she said. TADM has advised affected TechTV employees to consider taking civil legal action to enforce repayment. For some, however, this may be too little too late, especially if the impact has gone beyond their bank accounts. Marc (not his real name), a foreign employee at TechTV, lost his S Pass after the firm stopped making CPF contributions to its local staff, affecting the company's ability to retain foreign workers. Since joining TechTV in October 2023, Marc has received his salary on time only twice. He has not been paid in full since May 2024. After being forced to leave Singapore, he continued to work remotely for the company but struggled financially. His son was kicked out of his school dormitory over unpaid fees, Marc said. 'My debt is neck deep,' he said. 'We cannot even afford house maintenance. If something gets broken we just let it because it is more important to spend (money) for food rather than fix. 'My only mistake was applying for this job.'
ABC News
06-06-2025
- Business
- ABC News
Benalla business fined $255k for providing farm workers without labour hire licence
A regional Victorian horticulture company and two individuals at the business have been fined a quarter of a million dollars for breaching labour laws. The Supreme Court of Victoria found Cameron Workforce in Benalla contravened state labour laws by providing workers without a labour hire licence. The workers picked grapes and chestnuts on several farms in the Benalla region. The court imposed a $200,000 penalty on the business. It also ordered a company director to pay a $40,000 penalty, and another individual was fined $15,000 for their conduct. The hefty financial penalties come after the Labour Hire Authority (LHA) launched an investigation into overcrowded worker accommodation. The court found workers were housed in overcrowded and substandard housing owned by a company director. It found the business failed to provide workers with a number of entitlements, including written contracts or pay slips. Workers were not provided a minimum hourly rate under the industry award or superannuation contributions, and had their income tax withheld from wages. The court's findings and the financial penalty come after the company's bank account was frozen in 2023 following earlier court action taken by the LHA. The company had agreed not to provide labour hire without a licence. The authority said given the defendant's non-compliance with a range of laws, they would make referrals to other relevant regulators. Labour hire licensing commissioner Steve Dargavel said labour hire workers in the horticulture industry were among the state's most vulnerable. "The industry is a key focus for our expanded compliance and enforcement program," he said. "LHA will use all the tools at its disposal to remove exploitative businesses from the labour hire industry."
The Independent
11-05-2025
- Business
- The Independent
Just 21 companies prosecuted in 15 years for not paying minimum wage
Just 21 companies have been prosecuted for not paying the minimum wage in 15 years, shock new figures show. Experts said the small numbers 'emboldened' rogue employers who paid workers far less than they were due as ministers were warned to get a grip of the problem, amid claims it was hampering economic growth and increasing the burgeoning welfare bill. Between 2008 and 2023, only 21 employers were successfully prosecuted for underpaying the minimum wage, with an additional case accepting a caution, according to official figures from the Department for Business and Trade. Ministers say criminal prosecution is reserved for the most serious cases, which involve deliberate underpayment or reckless pay practices. These are usually where there is a wider public interest, or where employers are persistently non-compliant or refuse to cooperate with HMRC, they say. Last year 524 businesses were 'named and shamed' for failing to pay the minimum wage, leaving more than 172,000 workers out of pocket, and ordered to repay workers nearly £16 million, plus an additional financial penalty. But Labour peer Lord Sikka, emeritus professor of accounting at the University of Essex, described those punishments as 'puny' and called for more companies to be prosecuted. The figures on prosecutions were revealed by minister Baroness Jones of Whitchurch in response to a question from Lord Sikka. He told The Independent: 'Our enforcement is incredibly weak. 'I think this is part of the British disease where the law is not really enforced, because they do not employ enough enforcers. It really then emboldens rogue employers because they can then game the system. And every year hundreds of thousands of workers are denied the minimum wage. He called for more prosecutions and said the penalty for not paying the minimum wage 'should at least equal the remuneration of the company board. The larger the company the bigger the penalty'. He added that a failure to pay the minimum wage, brought in the Labour prime minister Tony Blair has an impact 'at many levels of the economy. It could boost growth and reduce the welfare budget - if people are earning more they have to claim less welfare.'
