Directors of Two Cleaning Companies Convicted For Failing To Pay Salaries

The Ministry of Manpower (MOM) has prosecuted two cleaning companies – Home and Industrial Maintenance Services Pte Ltd and IMM & IMM Cleaning Services Pte Ltd – and their directors for failing to pay salaries to their employees.

2.   The managing director of Home and Industrial Maintenance Services Pte Ltd, Ang Ser Hock, pleaded guilty on 8 Aug 08 to 53 counts of failure to pay salaries totalling $31,268.22 to 53 employees. Another 22 counts were taken into consideration during sentencing. As Mr Ang informed the Court he would not be able to pay any fine, the Court imposed a four-month custodial sentence on him. In the second case, IMM & IMM Cleaning Services Pte Ltd was convicted on 13 Aug 08 for two charges and fined $1,500 with 12 other charges taken into consideration during sentencing. Its managing director, Andrew Sivanesan S/O Balakrishnan, was also fined $1,500.

Facts of the Cases

Case 1 – Home and Industrial Maintenance Services Pte Ltd

3.   Between Oct 06 and Feb 07, MOM received complaints from 53 cleaners working for Home and Industrial Maintenance Services that they had not been paid their salaries ranging from a few days to one and a half months. Their salary claims were adjudicated by the Labour Court and Orders were made for the company to pay the arrears. However, the Orders were not compiled with. A total of 75 charges were then brought against the company and Mr Ang.

Case 2 – IMM & IMM Cleaning Services Pte Ltd

4.   IMM & IMM Cleaning Services Pte Ltd failed to pay salaries (ranging between one to three weeks) owed to 14 cleaners after terminating their employment contracts. Their salary claims were adjudicated by the Labour Court, but the company failed to comply with the Orders to pay the arrears.

5.   It subsequently made good on the arrears, amounting to $5,573, to the 14 cleaners. However, in view of the company's violation of the Employment Act, the Ministry proceeded to prosecute the company and its director on two charges each with another 12 charges taken into consideration.

Stepped-up enforcement efforts

6.   Since 2007, MOM has successfully prosecuted four cleaning companies¹ for violation of the Employment Act. Another five cleaning companies² are pending prosecution for various offences under the Employment Act.

7.   Mr Quek Jen Juan, Senior Assistant Director, Labour Relations & Workplaces Division, MOM says, "The Ministry is stepping up on our education and enforcement efforts on employment conditions of workers, especially lower salaried workers in sectors such as cleaning. The Ministry has also intensified outreach efforts with partner agencies to raise employers' awareness of their statutory obligations under the employment laws."

Failure to Pay Salary is an Offence

8.   The Ministry would like to remind employers, including management staff responsible for the company business, to fulfil their responsibility of ensuring that their employees receive their salaries on time. Employers who fail to pay salary within seven days from the end of the salary period and/or fail to pay the salary within three days from the day of termination of employees' employment are in violation of the Employment Act. The Ministry will take prosecution action against errant employers and their directors/partners. On conviction of the offence, the accused shall be liable to a fine not exceeding $1,000 per charge or to imprisonment for a term not exceeding 6 months or both.