Directors of Two Cleaning Companies Convicted For Failing to Provide Statutory Benefits to Employees

17 October 2008

The Ministry of Manpower (MOM) has prosecuted two cleaning companies – Sparkle System Cleaning Services and Sun City Maintenance Pte Ltd – and their sole proprietor and managing director respectively for failing to provide statutory employment benefits to their employees.

2.   The sole proprietor of Sparkle System Cleaning Services, Pang Loo, pleaded guilty on 24 Sep 2008 to 10 charges of Employment Act infringements and was fined $6,000 for failure to provide his employees with one rest day per week, annual leave and an extra day's pay for work performed on a public holiday. Another 23 charges were taken into consideration during sentencing.

3.   In the second case, Sun City Maintenance Pte Ltd was convicted on 6 Oct 08 for eight charges and fined $4,800 with another 18 charges taken into consideration during sentencing. Its managing director, Swee Peng Koon, was also convicted and fined $4,800 for the same offences as he was responsible for the company's failure to provide statutory employment benefits to the employees.
Brief Facts of the Cases

Case 1: Sparkle System Cleaning Services

4.   On 20 September 2007, an audit conducted by MOM revealed that Sparkle System Cleaning Services had infringed the Employment Act by failing to provide statutory employment benefits to its four cleaners. The cleaners were given two rest days per month instead of one rest day per week as required under the law. They were also not granted annual leave and were not paid an extra day's pay when they worked on a public holiday. The Ministry proceeded to prosecute the sole proprietor of Sparkle System Cleaning Services on 10 charges, with another 23 charges taken into consideration.
Case 2 – Sun City Maintenance Pte Ltd

5.   On 6 Dec 2007, MOM conducted an audit on Sun City Maintenance Services to verify the employment terms and conditions extended to its employees. Investigations revealed that the company had provided the cleaners with only two rest days a month, and no annual leave was given. Some cleaners had worked beyond 72 hours of overtime per month. The company and its managing director were each prosecuted on 8 charges under the Employment Act, with another 18 charges taken into consideration during sentencing.

Failure to Provide Statutory Benefits is an Offence

6.   Mr Quek Jen Juan, Senior Assistant Director, Labour Relations & Workplaces Division said, “We hope that these 2 cases would serve as a wake up call to all employers that they have a legal obligation to provide their workers with the basic employment benefits provided for under the law. Since 2007, MOM has prosecuted six cleaning companies for violations of the Employment Act. Another three cleaning companies¹ are pending prosecution for failure to pay salaries in accordance with the Employment Act.”

7.   NTUC strongly supports MOM's actions to bring these recalcitrant employers to task. Mr Zainudin Nordin, Director, Unit for Contract and Casual Workers (UCCW) said, "Through UCCW's interactions with these vulnerable workers, we know that many of them who are not accorded fair employment terms are afraid to seek help because they are fearful of losing their jobs or they do not know where to seek assistance. The UCCW has been working closely with the tripartite partners to advocate best sourcing and fair employment through various platforms such as roadshows, seminars and workshops to contract and casual workers, service buyers and providers."

8.   The Ministry would like to remind employers that failure to provide statutory employment benefits such as annual leave, rest day and sick leave in accordance with the law are offences under the Employment Act. It is also an offence to deploy the employees to perform work exceeding 12 hours per day or 72 hours in a month. Those who are found to have violated the Act may be prosecuted in court and fined up to $1,000 for each offence. For a second or subsequent offence, he can be fined up to $2,000 or imprisoned for a term not exceeding one year or both.

¹Calvary General Services Pte Ltd, Homemaker (East) Pte Ltd, and NCS Cleaning System Pte Ltd.

Annex A

Other Cases of Cleaning Companies Convicted in Court