Amount recovered from employers in 2024 rises to $19 million from $14 million in 2023
THE BIG STORY
By Heng Hui Wen
The amount of salary arrears and compensation recovered for employees in 2024 hit $19 million, up from $14 million in 2023, in a trend that reflects rising disputes amid economic uncertainty. The latest data from the Ministry of Manpower (MOM) also shows that the number of wrongful dismissal claims per 1,000 employees was at a five-year high.
Claims rise to five-year high
The number of claims filed at Tripartite Alliance for Dispute Management (TADM), the central agency for employment claims, increased for the fifth consecutive year. Salary claims, wrongful dismissal claims, and retrenchment-related disputes were all up, the figures showed.
Total claims recovered for affected employees increased significantly, with salary claims hitting $19 million in 2024, a 36 percent rise year-on-year.
Wrongful dismissal claims rose to 0.29 per 1,000 employees in 2024, compared with 0.27 per 1,000 employees in 2023 and 0.23 in 2022.
For salary claims, the rate was 0.35 claims per 1,000 employees in 2024, up from 0.33 in 2023. The lowest rate in the last five years was 0.27 in 2020.
MOM attributed the rise to higher retrenchment and business closure rates, which have grown following global economic headwinds.
More disputes amid economic headwinds
The number of case filings at TADM has been climbing, reflecting broader business and employment challenges faced by companies and workers.
In 2024, TADM handled 11,000 salary and wrongful dismissal claims – up from 9,000 in 2023 – with almost 90 percent of claims resolved within six weeks. MOM said over 75 percent of claims were resolved through mediation, and the remainder referred to the Employment Claims Tribunal.
A TADM spokesperson said the main reasons for salary disputes stemmed from financial constraints and cash-flow problems faced by companies, especially SMEs (small and medium-sized enterprises) affected by slowdown in consumer demand and supply chain disruptions.
Retrenchment-related claims are also on the rise, with over 1,800 employees affected in 2024, a 16 percent jump compared with 2023.
Employers urged to follow fair process
MOM urged employers to ensure fair and responsible retrenchment processes, including providing adequate notice and compensation under employment laws.
A MOM spokesperson said: “Business challenges should not be an excuse for non-payment or unfair dismissal. Employees must be treated fairly and in accordance with Singapore’s employment standards.”
TADM said it will increase outreach and education efforts towards both employers and employees to build awareness of proper dispute resolution and employment standards.
Additional Data (from Ministry of Manpower, Tripartite Alliance for Dispute Management):
Number of wrongful dismissal claims per 1,000 employees:
2020 – 0.23
2021 – 0.25
2022 – 0.23
2023 – 0.27
2024 – 0.29
Number of salary claims per 1,000 employees:
2020 – 0.27
2021 – 0.29
2022 – 0.30
2023 – 0.33
2024 – 0.35
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