Five construction companies charged for employment-related offences

Offences included exceeding lawful overtime hours, unauthorised deductions from salaries, late salary payments, and not giving paid holiday and annual leave

5 June 2014 Employment practices

5 June 2014

The Ministry of Manpower (MOM) charged five companies in the construction sector – JK Integrated Pte Ltd, Ng Brothers Scaffolding Pte Ltd, Shanghai Tunnel Engineering Co. Ltd, Shanghai Tunnel Engineering Co. (Singapore) Pte Ltd, and Straits Construction (S) Pte Ltd – in the State Courts today for failing to comply with the Employment Act (EA).

These cases came to light when MOM conducted proactive checks at construction work sites and feedback surfaced through workers and third-parties. Construction workers from three of the companies were found to have excessive working hours. Under the EA, working more than 72 hours of overtime a month is prohibited, except in certain exempted circumstances. Four of the companies had also failed to pay their workers on time, or had withheld their workers’ salaries or made unauthorised deductions from them. All these are breaches of the EA. Information about MOM’s investigations of the companies and details of the charges against them are set out below.

Name of company and information about MOM’s investigations	Charges
1. JK Integrated Pte Ltd MOM’s investigations established that between February 2013 and May 2013, the company failed to pay salaries and overtime payment to five employees for more than a month after the salary period. Under the EA, companies are to pay salaries and overtime payments by the 7th day and the 14th day after the salary period, respectively. The company attributed the late payments to its cash flow problems. MOM told the company to rectify its lapses. However, the company continued to be late in making salary and overtime payments.	26 charges under the EA against the company: 20 counts under the EA for failure to pay salaries before the expiry of the 7th day after the last day of the salary period. 6 counts under EA for failure to pay overtime before the expiry of the 14th day after the last day of the salary period.
2. Ng Brothers Scaffolding Pte Ltd MOM’s investigations established that the company withheld salaries from five employees for two months between March to May 2013. MOM told the company to pay all outstanding salaries due to employees and to pay salaries on time, but the company failed to do so. In addition, it did not give its daily-rated employees paid annual leave and paid public holidays.	27 charges under the EA against the company: 15 counts under the EA for failure to pay salaries before the expiry of the 7th day after the last day of the salary period. 7 counts under EA for not granting paid annual leave to employees who worked beyond 3 months of service. 5 counts under EA for failure to provide paid holiday at gross rate of pay, where the employees were not working on that public holiday.
3. Shanghai Tunnel Engineering Co. Ltd 4. Shanghai Tunnel Engineering Co. (Singapore) Pte Ltd MOM’s investigations established that seven employees of both companies worked more than 72 hours of overtime in June 2013 and July 2013. Under the EA, working more 72 hours of overtime a month is prohibited, and both companies did not have an exemption from MOM for their employees to do so. Both companies also deducted amounts that ranged from $100 to $200 from 14 employees’ monthly salaries from June to August 2013. The companies claimed that the deductions were meant as savings for the employees as well as retaining them and that those monies would be returned to the employees at the end of their employment. However, such deductions are not authorised under the EA. In addition, both companies did not give 13 of their daily-rated employees paid annual leave and paid public holidays.	47 charges under the EA against Shanghai Tunnel Engineering Co. Ltd: 19 counts under the EA for making deductions other than deductions authorised under the provisions of the Employment Act. 12 counts under EA for not granting paid annual leave to employees who worked beyond 3 months of service. 8 counts under EA for making employees work overtime beyond 72 hours a month without exemption. 8 counts under EA for failure to provide paid holiday at gross rate of pay, where the employees were not working on that public holiday. 35 charges under the EA against Shanghai Tunnel Engineering Co (Singapore) Pte Ltd: 21 counts under the EA for making deductions other than deductions authorised under the provisions of the Employment Act. 8 counts under EA for making employees work overtime beyond 72 hours a month without exemption. 4 counts under EA for failure to provide paid holiday at gross rate of pay, where the employees were not working on that public holiday. 2 counts under EA for not granting paid annual leave to employees who worked beyond 3 months of service.
5. Straits Construction (Singapore) Pte Ltd MOM’s investigations established that 8 employees worked more than 72 hours of overtime a month from June to July 2013. In the same period, Straits Construction also breached the EA by not giving 10 employees paid public holidays.	33 charges under the EA against the company: 13 counts under the EA for making employees work overtime beyond 72 hours a month without exemption. 20 counts under the EA for failure to provide paid holiday at gross rate of pay.

Name of company and information about MOM’s investigations

Charges

1. JK Integrated Pte Ltd

MOM’s investigations established that between February 2013 and May 2013, the company failed to pay salaries and overtime payment to five employees for more than a month after the salary period. Under the EA, companies are to pay salaries and overtime payments by the 7th day and the 14th day after the salary period, respectively. The company attributed the late payments to its cash flow problems. MOM told the company to rectify its lapses. However, the company continued to be late in making salary and overtime payments.

26 charges under the EA against the company:

20 counts under the EA for failure to pay salaries before the expiry of the 7th day after the last day of the salary period.
6 counts under EA for failure to pay overtime before the expiry of the 14th day after the last day of the salary period.

2. Ng Brothers Scaffolding Pte Ltd

MOM’s investigations established that the company withheld salaries from five employees for two months between March to May 2013. MOM told the company to pay all outstanding salaries due to employees and to pay salaries on time, but the company failed to do so. In addition, it did not give its daily-rated employees paid annual leave and paid public holidays.

27 charges under the EA against the company:

15 counts under the EA for failure to pay salaries before the expiry of the 7th day after the last day of the salary period.
7 counts under EA for not granting paid annual leave to employees who worked beyond 3 months of service.
5 counts under EA for failure to provide paid holiday at gross rate of pay, where the employees were not working on that public holiday.

3. Shanghai Tunnel Engineering Co. Ltd
4. Shanghai Tunnel Engineering Co. (Singapore) Pte Ltd

MOM’s investigations established that seven employees of both companies worked more than 72 hours of overtime in June 2013 and July 2013. Under the EA, working more 72 hours of overtime a month is prohibited, and both companies did not have an exemption from MOM for their employees to do so.

Both companies also deducted amounts that ranged from $100 to $200 from 14 employees’ monthly salaries from June to August 2013. The companies claimed that the deductions were meant as savings for the employees as well as retaining them and that those monies would be returned to the employees at the end of their employment. However, such deductions are not authorised under the EA.

In addition, both companies did not give 13 of their daily-rated employees paid annual leave and paid public holidays.

47 charges under the EA against Shanghai Tunnel Engineering Co. Ltd:

19 counts under the EA for making deductions other than deductions authorised under the provisions of the Employment Act.
12 counts under EA for not granting paid annual leave to employees who worked beyond 3 months of service.
8 counts under EA for making employees work overtime beyond 72 hours a month without exemption.
8 counts under EA for failure to provide paid holiday at gross rate of pay, where the employees were not working on that public holiday.

35 charges under the EA against Shanghai Tunnel Engineering Co (Singapore) Pte Ltd:

21 counts under the EA for making deductions other than deductions authorised under the provisions of the Employment Act.
8 counts under EA for making employees work overtime beyond 72 hours a month without exemption.
4 counts under EA for failure to provide paid holiday at gross rate of pay, where the employees were not working on that public holiday.
2 counts under EA for not granting paid annual leave to employees who worked beyond 3 months of service.

5. Straits Construction (Singapore) Pte Ltd

MOM’s investigations established that 8 employees worked more than 72 hours of overtime a month from June to July 2013. In the same period, Straits Construction also breached the EA by not giving 10 employees paid public holidays.

33 charges under the EA against the company:

13 counts under the EA for making employees work overtime beyond 72 hours a month without exemption.
20 counts under the EA for failure to provide paid holiday at gross rate of pay.

All five cases have been adjourned following today’s charges:

a) Shanghai Tunnel Engineering Co. Ltd and Shanghai Tunnel Engineering Co will be heard on 19 June 2014

b) JK Integrated Pte Ltd and Straits Construction (Singapore) Pte Ltd will be heard on 3 July 2014

c) Ng Brothers Scaffolding Pte Ltd will be heard on 17 July 2014.

Employers must fulfil their legal obligations
MOM cautions employers that they must fulfil their legal obligations, and ensure that employees are given their statutory benefits under Singapore’s employment laws, such as the EA and the Employment of Foreign Manpower Act. Employers have to be familiar with their legal duties.
MOM will step up engagement with the construction sector to highlight these legal obligations and common employment malpractices. We strongly urge errant companies to review and rectify illegal and unreasonable clauses in their employment contracts. We will take action against companies that flout or disregard our employment laws.
Workers or members of the public with information on employment-related offences may call the MOM hotline at (65) 6438 5122 or email MOM at mom_lrwd@mom.gov.sg. All details will be kept strictly confidential.

Five construction companies charged for employment-related offences

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