Unpaid Salaries Owed to Foreign Employees

Ms Anthea Ong asked the Minister for Manpower of the unpaid salaries ordered by the Employment Claims Tribunal in 2017 and 2018 (a) how much was owed to foreign employees; and (b) how much has been recovered by these foreign employees to whom these salary debts were owed.

The amount of unpaid salaries ordered to foreign claimants by the Employment Claims Tribunals (ECT) since its establishment on 1 April 2017 is shown in the table below. Taking into account that the 2017 figure is not based on the full year, the value of unpaid salaries ordered to foreign claimants by the ECT has not increased in 2018.

Overall, the amount of money recovered to foreign claimants is about half of the total ordered amount.

In terms of individual outcomes, about 40% of the claimants reported that they received full payment from employers. About 40% reported partial payment, which includes all payments made by employers, insurers or the Migrant Workers Assistance Fund.

The average amount owed to foreign claimants who fully recovered salaries from their employers is about $3,500, significantly lower compared to that of claimants who received partial or no payment, about $7,100. The vast majority of cases of partial or no payment involve employers who are in financial difficulty.

The evidence is thus very clear, that early reporting of arrears is critical to the prospects of full recovery. This is why MOM consistently educates workers to approach the Tripartite Alliance for Dispute Management early when they encounter arrears, and urges Non-Governmental Organisations that assist foreign workers to do the same.