EMPLOYMENT RIGHTS OF WORKERS (Unfair dismissal)

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EMPLOYMENT RIGHTS OF WORKERS:

(Unfair dismissal): 11.

Assoc. Prof. Ong Soh Khim asked the Minister for Manpower since 2002 (a) how many complaints have been reported of unfair and/or unlawful employment tactics used by employers to (i) force workers to resign; (ii) retrench workers; and (iii) dismiss workers; (b) how many of these cases involved older workers in the age groups of 45-54, 55-60, and above 60; and (c) what are the measures to protect the employment rights of older workers who may not be highly educated and hence do not know their rights.

Mr Gan Kim Yong (for the Minister for Manpower): Sir, between 2002 and 2005, my Ministry received a total of 287 complaints against unfair dismissals. Most of the cases involved dismissals due to employees' wrongdoings, indiscipline or work-related performance. Of the 80 complaints against unfair dismissal that MOM dealt with in 2005, 34 (42.5%) cases involved employees who were below the age of 45, 28 (35.0%) were between the ages of 45 and 54, 14 (17.5%) were between 55 and 60, and four (5%) were above 60 years of age. The number of workers who have complained that they were forced to resign or retrenched to disguise a dismissal is small. Hence, MOM does not maintain separate categories of such cases.

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As stipulated in the Employment Act and the Industrial Relations Act, a worker who considers his dismissal to be without just cause, may appeal to the Minister for Manpower within one month of the dismissal. If the dismissal is found to be without just cause, the Minister may order the employer to reinstate the dismissed employee to his former employment or compensate him. Where the company has valid grounds to dismiss an employee, its decision will be upheld by the Minister.

Older workers who are unsure of their employment rights should consult their unions if they are union members. For non-unionised members, they can approach MOM for advice and assistance. Our officers will help workers seek redress if they have a valid case. The Ministry also issues advisory guides in four official languages to workers on their rights and obligations, including the right to appeal against unfair dismissal.

Assoc. Prof. Ong Soh Khim: Sir, the first question is: would the Ministry provide statistics of the cases in the three age groups that were done by the employers to get rid of the older workers so as to hire cheaper foreign workers and/or short-term contract workers? Of these 80 cases, would the Ministry agree that this is just a tip of the iceberg and there are probably many more cases where there are older workers and not very highly-educated and therefore do not know the channels to lodge a complaint? The last question is: of all these cases, how many are cases where older workers, who are not highly-educated that probably have worked for many years for the company, were intimidated and coerced to sign a resignation letter written on their behalf to accept a certain salary as compensation so as not to seek further compensation from the company?

Mr Gan Kim Yong: Sir, with regard to the Member's questions, we do not have

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specific numbers of workers who have been forced to sign a resignation letter.

For those workers who have come to us, we have investigated and for those who have been proven to be the case, we have instructed the employers to reinstate them. I think what is more important is for us to understand that this issue of fair employment practices has to be dealt with in a holistic and comprehensive manner, and it has to be a collective effort of the Government, the unions, the employees as well as the employers through their associations. I think only through this collective effort will we be able to change the mindset and to educate both the employers as well as employees. To educate the employers so that they know what are the acceptable practices for managing their workers, whether it is recruitment or dismissal, and to also educate and reach out to workers who may need help in understanding their rights and obligations. I do agree with the Member that much more needs to be done and can be done to reach out to these workers. And this is one of the efforts that we are looking at, on how to collaborate with the tripartite partners to help our workers understand their rights better, and we will continue to do so.

Ms Irene Ng Phek Hoong (Tampines): Has the Ministry observed a trend where older workers are put on contract work so as to save on cost as well as to make it easier for the employers to terminate their services should younger workers come along?

Mr Gan Kim Yong: I think contract workers are employed for a variety of reasons. Some contract workers are employed for specific projects and some are employed for overseas postings, for example. And not all of them are older workers or lower-wage workers. Some of them are actually senior managers who are on contract and they are employed for specific reasons. So it is difficult to generalise and say that they are employed

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for lowering cost purposes. Some workers prefer to have a short-term contract so that they have flexibility to decide what they want to do after expiry of their contract.

As I explained in my answer to an earlier question, one purpose for contract workers is that it serves to allow companies to have greater flexibility in responding to changes and volatility in the business conditions, which is an important part of the flexibility we want to build into the economy.

Mdm Halimah Yacob: Sir, of the 287 complaints of unfair dismissals received by the Ministry, how many orders of reinstatements and how many orders of compensations did the Ministry make?

There have also been some comments made on the need for a more open and transparent process of unfair dismissal cases. Would the Ministry consider having a tribunal perhaps to look into unfair dismissal cases rather than having it done behind the scene?

Mr Gan Kim Yong: Sir, the process is actually quite transparent and it is enforced by the Ministry. Just to give the Member a breakdown, out of the 80 cases specifically in 2005 that MOM dealt with, a total of 43 cases were resolved through conciliation between the parties and compensations were paid where it was due; 35 cases were not pursued further because the employers and employees might have reached a certain agreement without the involvement of MOM; one appeal was rejected because there was no ground for appeal; and one Ministerial order was issued against the errant employer. That adds up to a total of 80 cases.