Salary, wrongful dismissal incidence rates see increase
Employment claims in Singapore went up to 2.53 per 1,000 employees in 2023, according to the latest data from the Ministry of Manpower (MOM).
MOM's Employment Standards Report 2023 said the increase is observed for both local and foreign employees due to more challenging economic conditions.
"In particular, the increase is driven by a higher number of salary claims involving foreign employees in the Construction sector," MOM said.
Overall, there were 9,393 employment claims and appeals lodged with the ministry and Tripartite Alliance for Dispute Management (TADM), according to MOM.
Local employees lodged 4,318 (46%), while foreign employees lodged the remaining 5,079 (54%).
Most of the claims and appeals lodged in the previous year involved salary disputes, according to MOM. In fact, the overall incidence of salary claims went up 2.19 per 1,000 employees in 2023, up from 1.68 in 2022.
Source: MOM's Employment Standards Report 2023
MOM attributed the increase in salary claims among local employees to the Wholesale & Retail Trade, Food and Beverage Service Activities, and Information & Communications sectors.
For foreign employees, the increase in salary claims was driven by the Construction sector, particularly group claims from firms facing business failures, financial difficulties, or undergoing liquidation.
Meanwhile, there were 1,194 claims and appeals for wrongful dismissal filed in 2023, according to MOM.
The incidence rate of wrongful dismissal also went up to 0.32 per 1,000 employees, with local employees registering a higher 0.39 than foreigners with 0.18.
Source: MOM's Employment Standards Report 2023
Despite the higher volume of employment claims, MOM said the overall resolution rate at mediation continues to be high.
"More than 80% of employment claims were resolved at TADM with more than 90% fully recovering their salaries and payments at TADM and the Employment Claims Tribunals (ECT)," MOM said.
The proportion of salary claims resolved at TADM was 88%, higher than last year's 86%. The rest of the claims were referred to the ECT for adjudication.
For wrongful dismissals, 70% were resolved at TADM, higher than 69% recorded last year. The rest were also brought to the ECT for adjudication, according to MOM.
