Employer heeded TADM’s advice to release the owed salary to employee
Helping employer and employee to resolve compensation issues amicably
Disclaimer: The case study is based on an actual case handled by TADM. The names and identifying details in this case have been changed to protect the privacy of individuals.
Learning Insights
- Employers are obligated to pay their employees' salaries on time and should not withhold them.
- Any deductions from employees' salaries for damage can only be made based on conditions stated in the Employment Act.
- In the event of damages to company property due to negligence, employees should inform their employers promptly.
Background
Tim worked as a delivery man for a small food & beverage company which supplied cartons of milk to mini marts across Singapore.
A month into his employment, Tim’s supervisor Steve discovered a dent on the rear of the company lorry driven by Tim. When questioned, Tim owned up and explained that he accidentally damaged the vehicle on one of his deliveries.
Steve incurred substantial loss to repair the lorry as well as the loss of sales as the lorry could not be used for a few days to make milk deliveries.
Steve withheld Tim’s salaries and also issued a letter of demand to Tim to recover all the losses incurred by the company.
Following this, Tim lodged a claim with TADM to recover his owed salaries.
How TADM helped
When both parties were at mediation, there was no disagreement that the lorry damage was a result of Tim’s negligence. The mediator also advised Steve that the company could only claim a portion of the damages under the Employment Act.
Outcome
Steve took the mediator’s advice and promptly settled the relevant amount owed to Tim. Tim also acknowledged that he should accept part responsibility and pay a portion of the cost, given that he did not report the accident immediately. Both Tim and Steve were happy with the amicable and fair settlement.
