Fines for Employers who Skip Adjudication Sessions for Salary Claims

Mr K Karthikeyan asked the Minister for Manpower whether the Ministry will consider awarding the full salary claim on top of a fine when an employer refuses to turn up for an adjudication on a salary claim by a professional, manager or executive (PME).

Under the Employment Act, the Commissioner for Labour may hear and decide on salary claims of employees covered under the Act, including a professional, manager or executive (PME) earning up to $4,500 a month. If an employer fails to turn up for the Commissioner’s inquiry without a valid reason, the Commissioner has the power to proceed to hear and make a decision in the absence of the employer, notwithstanding the fact that he is not present. If an employee who lodges the claim fails to attend the inquiry without a valid reason, his claim may be struck off. Given this, the Ministry is of the view that there is no need to introduce additional measures on any party to the claim who fails to turn up for the inquiry without a valid reason.

In addition, every salary-related offence will be investigated and an appropriate enforcement action will be taken against the errant employer, including curbing his work pass privileges, imposition of composition fines and prosecution, which includes a fine or imprisonment or both.