Reasons for Not Introducing Mandatory Wage Recovery Insurance and Personal Liability for Company Directors for Unpaid Salaries

Mr Gerald Giam Yean Song asked the Acting Minister for Manpower (a) what are the reasons for not introducing mandatory wage recovery insurance and personal liability for company directors for unpaid salaries; and (b) what legislative hurdles exist in amending the Insolvency, Restructuring and Dissolution Act 2018 to prioritise employees over secured creditors.

The Member may refer to the reply to Parliamentary Question No 33 for the Sitting on 13 January 2026. [Please refer to ​"Support for Employees Affected by Abrupt Closure of Companies and Proposal to Amend Insolvency, Restructuring and Dissolution Act 2018 to Prioritise Payout to Employees", Official Report, 13 January 2026, Vol 96, Issue 13, Written Answers to Questions for Oral Answer not Answered by End of Question Time section.]

We will continue to work with the tripartite partners to improve support for workers affected by unpaid salaries.