Number of salary disputes up in 2022: MOM

There were 1.68 salary disputes lodged per 1,000 employees.

Companies experiencing financial difficulties and business failures drove up the number of employment and salary disputes in 2022.

The number of employment claims and appeals lodged with the Ministry of Manpower (MOM) and the Tripartite Alliance for Dispute Management (TADM) was 1.97 per 1,000 employees in 2022, increasing from 1.73 per 1,000 employees in 2021. 

“The increase was driven by a higher proportion of group claims from companies that experienced business failures or financial difficulties,” the MOM said, noting that the majority of employment claims were by foreign employees and local employees.

The ratio is still lower than in pre-COVID, however, when there were 3.04 disputes per 1,000 employees.

Salary claims also lodged an increase to 1.68 per 1,000 employees in 2022, from 1.43 in 2021. This is lower than the 2.68 in 2019.

Two-month conclusion
At least 90% of the salary claims were concluded at TADM within 2 months in 2022. 

In total, 86% of salary claims were resolved at TADM, whilst the remaining 14% were referred to the Employment Claims Tribunals (ECT) for adjudication.

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Over 9 in 10 (93%) of the employees recovered their salaries in full of the assistance of TADM and ECT, slightly lower than the 95% in 2021. Meanwhile, 4% recovered their salaries partially through settlement payments from security bond insurers or main contractors, or through financial assistance from the Short-Term Relief Fund or Migrant Workers’ Assistance Fund.

MOM also suspended the work pass privileges of employers who did not fully repay their employees. 

Less than 1% of the salary claims lodged in 2022 involved wilful employers who did not make full payment despite having the means to do so, the MOM said.

Meanwhile, 84% of wrongful dismissal claims were concluded at TADM within 2 months. The overall incidence of wrongful dismissal claims in 2022 remained relatively constant at 0.26 per 1,000 employees compared to 0.27 in 2021.

1 in 4 (25%) of dismissal claims lodged in 2022 were assessed to be substantiated. Majority or 70% of these claims were resolved at TADM, and the remaining 30% were referred to ECT for adjudication.