MOM to Reduce or Stop Future Payouts to Companies that Cut Employees’ Salaries during Covid-19

April 24, 20203:37 pm2196 views

MOM to Reduce or Stop Future Payouts to Companies that Cut Employees' Salaries during Covid-19

Employers found to have cut down on their workers’ salaries, or placed them on unpaid leave, during the circuit breaker period may be subject to lower payouts in the next tranches or even be denied such payouts in the future, said the Ministry of Manpower (MOM).

In a statement on Thursday evening (23 April), MOM noted that it has “received feedback that a number of companies have not paid salaries during the circuit breaker period”.

“While we understand that employers may themselves face difficulties, it is not reasonable to implement extended no-pay leave or other wage-saving measures without engaging or seeking the consent of their employees,” said the Ministry.

Highlighting that it will look into complaints on employers who are not using the Jobs Support Scheme payouts to support employee salaries, MOM said that it is “unacceptable to threaten employees with termination should they report such issues to MOM”.

In addition to denying future payouts and waivers, MOM may also roll back the work pass privileges of errant employers, The Online Citizen reports.

MOM said it will investigate valid complaints and may suspend Jobs Support Scheme or Foreign Worker Levy payouts for these companies until investigations are completed.

The enhanced Jobs Support Scheme — through which the government will subsidise 75 percent of the first S$4,600 of gross monthly wages for 1.9 million local workers — will be extended until next month.

Eligible employers of migrant workers are also entitled to an additional levy rebate of S$750 per S Pass or Work Permit holder, on top of an earlier S$750 rebate for every such worker employed as of 29 February and the waiver of levies due this month.

Firms with PayNow Corporate accounts must make their acknowledgement of using the rebate and waiver through this form by 8 May in order to receive the rebate on May 29.

Those who opt to do so by 22 May will receive it on 19 June instead.

Companies without PayNow Corporate accounts, on the other hand, must make acknowledgement by 22 May to receive the payment by cheque from 3 July.

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