SINGAPORE: A couple who ran several F&B companies were fined on Friday (Jul 25) for owing more than 100 employees their salaries.
Sim Ling Zhen, 31, and her husband Wu Wenchun, 37, were each fined S$72,000 (US$56,300). If they fail to pay the fine, they will have to serve 66 weeks in prison.
They were each charged with 24 counts of salary offences under the Employment Act. The couple pleaded guilty to 12 charges, with the remaining 12 taken into consideration for sentencing.
A total of 103 employees were affected for the salary period from August to December 2022 across three companies: Royal Cuisine Group, Yanxi and Healthy Meals Catering.
About S$432,000 was owed to the employees and only S$73,000 was eventually paid.
WHAT HAPPENED
Sim and Wu were the registered director and general manager of the three companies.
The firms ran numerous catering services under brand names such as Tingkat Singapore, Angel Confinement Meals, Happy Mamapapa Catering and Vegetarian Buffet. It also operated the former restaurant Yanxi at Chin Swee Road.
The couple actively managed the operations of these catering brands.
“These catering brands were earlier reported by members of the public in 2022 over their failure to fulfil meal orders,” said MOM.
MOM investigations revealed that Sim and Wu started to accrue salary arrears in August 2022. In December that year, the companies’ premises were closed by landlords due to unpaid rent.
Sim and Wu did not fully inform the employees of the companies’ situation and disregarded their concerns after the closure, said the ministry.
The 103 employees were left stranded, with some being owed up to three months’ wages.
Sim and Wu were also uncooperative when employees sought help from MOM and the Tripartite Alliance for Dispute Management (TADM), said the ministry.
“They failed to attend mediation sessions, repeatedly missed appointments, and did not provide their most current residential address during investigations.
“Despite providing them with ample time to make salary restitutions to the affected employees, Sim Ling Zhen and Wu Wenchun did not make appreciable efforts to do so,” it added.
Most of the affected local workers have since found new employment. TADM had assisted the former employees, including providing them with financial assistance and linking them up with NTUC’s Employment and Employability Institute (e2i).
“MOM takes a serious view of the non-payment of salaries. We will continue to take firm action against errant offenders who fail to comply with our employment laws,” the ministry said.
Under the Employment Act, employers who fail to pay salaries can be fined between S$3,000 and S$15,000, jailed for up to six months or both.
The maximum penalties for repeat offenders are doubled.
