CONTRACT WORKERS (Complaint of non-payment of CPF and non-compliance with Employment Act)

Column: 2281

CONTRACT WORKERS:

(Complaint of non-payment of CPF and non-compliance with Employment Act): The following Question stood in the name of Mdm Halimah Yacob -

Column: 2282

6. To ask the Minister for Manpower over the last three years (a) how many contract workers complained about (i) non-payment of CPF; (ii) non-compliance with the Employment Act; (b) how were the contract workers assisted; and (c) what proactive measures will the Ministry put in place to better protect the interest of these workers.

Mr Yeo Guat Kwang: Question No. 6.

The Minister of State for Manpower (Mr Gan Kim Yong) (for the Minister for Manpower): Mr Speaker, Sir, the CPF Board investigated and positively determined 1,420 cases of non-payment or underpayment of CPF contributions in 2003, 1,060 cases in 2004, and 1,019 cases in 2005. The Board does not make a distinction between cases involving contract or non-contract workers. The CPF Board would help employees recover the arrears and employers will also face a penalty interest on late contributions. Employers convicted of non-payment of arrears, will have to pay a court fine in addition to the arrears and interest.

The number of claims under the Employment Act handled by my Ministry in the past three years was: 5,928 in 2003, 6,035 in 2004 and 5,775 last year. This represents 0.26% of the workforce. Of these, 3,406 in 2003, 3,586 in 2004 and 3,446 last year were successful claims by workers against their employers for non-compliance of the provisions of this Act. Out of these successful claims, 172, 217 and 183 in 2003, 2004 and 2005 respectively were from employees on term contract, temporary or casual employment, generally referred to as contract workers. The majority of these claims involved salary related payments.

In summary, the number of complaints against non-compliance of the Employment Act remains low. MOM and unions provide effective avenues for employees who wish to seek redress against their

Column: 2283

employers for violating the Employment Act.

My Ministry and the CPF Board will continue to proactively educate employers and employees on their rights and obligations regarding CPF contributions and employment benefits under the Employment Act.