Firms that treat workers unfairly during circuit breaker may lose support, work pass privileges: MOM

COMPANIES that reduce employee salaries or put them on no-pay leave during the circuit breaker will receive correspondingly lower wage subsidies under the Jobs Support Scheme (JSS), while those who treat workers in "irresponsible or unfair" ways may lose future government support and the ability to hire foreign workers, the Manpower Ministry (MOM) warned in a statement on Thursday.

Introduced in the Budget and since enhanced, the JSS has been extended into the month of May, in line with circuit-breaker measures being extended to June 1. In April and May, the scheme provides a wage subsidy of 75 per cent for the first S$4,600 of gross monthly pay of local workers.

This is to help employers retain local employees and continue paying them, said MOM, adding: "Companies that reduce their employees' salaries or put them on no-pay leave will receive correspondingly lower payouts in subsequent tranches."

For foreign employees, there is a foreign worker levy rebate of S$750 for each S-Pass or Work Permit holder employed as of Feb 29, which has now been extended to cover those employed as of May 1. Levies due in April and May have been waived.

"The financial support to employers is to help them continue paying the salaries of our migrant workers, as part of Singapore's  commitment to look after their livelihoods during this difficult period," said the MOM.

To ensure "consistency of understanding and practice", employers must now acknowledge, using an online form, that they will use the levy rebate and waiver to support their foreign employees.

Companies with PayNow Corporate accounts must make the acknowledgement by May 8 to receive the levy rebate on May 22. Those who make the acknowledgement by May 22 instead will receive the rebate on June 19.

Companies without PayNow Corporate accounts must make the acknowledgement by May 22, to receive the payment by cheque from July 3.

MOM will also investigate complaints of unfair practices, to ensure that JSS payouts have been used to support employee salaries.

MOM said it has received feedback that a number of companies have not paid salaries during the circuit-breaker period, which began on April 7.

"While we understand that employers may themselves face difficulties, it is not reasonable to implement extended no-pay leave or other wage-saving measures without engaging or seeking the consent of their employees," said MOM. "It is also unacceptable to threaten employees with termination should they report such issues to MOM."

MOM will investigate valid complaints and may suspend JSS or levy rebate payouts for companies under investigation, until the investigations are completed.

If there is evidence of irresponsible or unfair treatment, employers may be denied future employment support - including JSS, levy rebates, and levy waivers - and may have their work-pass privileges curtailed.