MES Group of companies and their former directors convicted of employment offences

Three companies under the MES Group, and four individuals who were their former directors, were convicted today of multiple offences under the Employment of Foreign Manpower Act (“EFMA”) and the Employment Act (“EA”). The companies convicted comprise Mini Environment Service Pte Ltd (“Mini Environment Service”), Labourtel Management Corporation Pte Ltd (“Labourtel”), and MES Logistics Pte Ltd (“MES Logistics”).

2 Since the offences were surfaced, the companies and the four individuals have been barred from employing migrant workers. The sentences imposed on the four individuals and the three companies are as below: 

3 In view of the convictions, the Ministry of Manpower (MOM) has assessed that Labourtel’s eligibility as a licensed operator under the Foreign Employee Dormitories Act (“FEDA”) to operate dormitories has been materially and adversely affected. MOM is in contact with the relevant parties to transition the dormitories to new operator(s), within reasonable time and with minimal disruption for the dormitory residents and their employers.

Case Details

4 From 2009 to 2019, the three companies submitted 111 false salary declarations in respect of Work Permit and S Pass applications or renewals to MOM. Haja and Chew carried out the submission of work pass applications and renewals for the three companies. Under Parvis and Jinna’s directions, Haja and Chew inflated the monthly salaries of various foreign employees, which were determined based on the prevailing requirements for a Work Permit or S Pass to be issued. The employees’ declared salaries were credited into their bank accounts. Thereafter, the employees were told to return the difference between their declared monthly salaries and their actual salaries in cash to Haja or Chew. This enabled the companies to hire more foreign employees than they would otherwise have qualified for.

5 In respect of Mini Environment Service, from 2015 to 2019, the company submitted 18 false employment declarations to MOM. Under Parvis and Jinna’s directions, Haja and Chew declared Mini Environment Service to be the official employer of the foreign employees named in the declarations. These foreign employees were, however, illegally deployed to work at MES Logistics or Labourtel, without valid work passes and undertook different job scopes than what was declared. This allowed the companies to circumvent the work pass quotas that were imposed on each of them.

6 From March to April 2019, Mini Environment Service also made its employees work overtime beyond the permitted limit of 72 hours per month as stipulated under the EA.

MOM Takes Firm Actions Against Errant Employers

7 Mr Adrian Quek, Divisional Director of the Foreign Manpower Management Division, MOM, said, “This is the largest and most extensive case of false declaration contraventions investigated by MOM to date. The MES Group had failed to protect its employees' well-being by illegally deploying them and subjecting them to overtime work beyond the legal limit. Furthermore, the group had egregiously circumvented our work pass controls, gaining an unfair commercial advantage over other companies. MOM will continue to take firm action against companies that contravene our laws.”

Employers Must Make Truthful Declarations

8 All employers must make accurate and truthful declarations to the Controller of Work Passes in their work pass applications. Making false declarations to the Controller is a serious offence.  Upon conviction, offenders are liable to a fine of up to $20,000 and/or imprisonment term of up to 2 years under the EFMA. They will also be barred from employing new foreign workers and renewing the permits of existing foreign workers.

9 Under the EA, offences involving excessive overtime are liable on conviction to a fine of up to $5,000. Repeat offenders will face an enhanced punishment of a fine of up to $10,000 and/or an imprisonment of up to 12 months.

10       Members of the public who know of persons or employers who contravene the EFMA and EA should report the matter to MOM via the MOM website (www.mom.gov.sg) under “Contact us” or call 6438 5122. All information will be kept strictly confidential.