PAYMENT OF SALARY ARREARS BY EMPLOYERS

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PAYMENT OF SALARY ARREARS BY EMPLOYERS:

* 16. *Mr Ong Ah Heng asked the Minister for Manpower, in the case of workers who are owed salaries by their employers (a) why does the Ministry require the employers to issue cheques in the names of the workers concerned, who are the claimants, instead of to the Ministry as in the past; (b) whether the workers are given up to only seven days to collect the cheques from the Ministry, after which the Ministry will return the unclaimed cheques to the employers; and (c) whether this is a responsible solution in helping the workers or it is just an easy way out.

Mr Hawazi Daipi (for the Minister for Manpower): Sir, in the past, employers who owed their workers salaries were requested to issue cheques for the salary arrears made in favour of the Commissioner for Labour. The Ministry would then bank in the cheque into its account, and issue a separate cheque with the same amount to the workers concerned. This process is inefficient and involves the unnecessary step of the Ministry collecting the monies in the first instance. As a result, it took longer for workers to get back their money.

Under the new system implemented with effect from February 2004, employers are advised to issue cheques made in favour of the workers directly and deposit the cheques with the Ministry.

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The workers are requested to collect the cheque from the Ministry within seven days. This has expedited the process. As a result, workers now are able to receive their payment earlier.

Our experience shows that the majority of workers are able to collect their cheques within one week. If any claimant fails to collect the cheque within that period, the Ministry will make further attempts to contact the worker thereafter. In situations where the unclaimed cheque is returned to the employer, the Ministry would ask the employer to re-issue a replacement cheque if the worker were to subsequently turn up to claim his monies. In situations where the cheque is not honoured, the Ministry will help the worker pursue the matter with the employer for payment to be made. Our records show that less than 1% of the 1,137 cheques received in 2004 were not honoured. In these cases, we have helped the workers to take up the matter with the employer. The new arrangement has worked well in the interests of workers who were owed salaries.