Local cupcake chain fined $119,500 for underpaying workers

It pleaded guilty on offences under the Employment of Foreign Manpower Act.

Pastry chain Twelve Cupcakes has been fined $119,500 for underpaying seven foreign employees of about $114,000 for over two years.

It pleaded guilty in December 2020 of 15 counts of offence under the Employment of Foreign Manpower Act. Under the law, employers must not pay less than the fixed monthly salary due to the foreign employee, and the payment must not be made later than seven days after the salary period.

The company has already made restitutions before the proceedings.

All S-Pass holders, the seven underpaid employees were promised fixed salaries of between $2,200 and $2,600.

The Ministry of Manpower carried out investigations in 2018 after receiving reports on the offences. At least 14 similar charges were considered during the trial.

The brand, founded by former DJ Daniel Ong and Jaime Teo, was bought by Indian-based tea company Dhunseri Group.