Employment Standards Report 2023: Rising claims highlight gaps despite high resolution rates

SINGAPORE – The Ministry of Manpower (MOM) and the Tripartite Alliance for Dispute Management (TADM) released the Employment Standards Report 2023 today, showcasing high employment standards and efficient dispute resolution mechanisms. However, the report also reveals underlying issues, with a notable rise in employment claims and appeals, pointing to potential gaps in employer practices and protections for employees.

Increase in Employment Claims and Appeals

The overall incidence of employment claims and appeals rose from 1.97 in 2022 to 2.53 per 1,000 employees in 2023, remaining lower than the pre-COVID figure of 3.04 in 2019.

While this appears positive, the increase suggests ongoing challenges in maintaining fair employment practices, raising concerns about the effectiveness of current regulations and employer compliance.

Swift Resolution of Salary Claims

In 2023, 90% of salary claims were concluded at TADM within two months, consistent with 2022 figures.

Despite this efficiency, the necessity for such rapid resolutions underscores persistent issues with salary disputes. The slight improvement in amicable resolutions (88% in 2023, up from 86% in 2022) reflects some progress, yet the remaining 12% referred to the Employment Claims Tribunals (ECT) indicates ongoing friction between employees and employers.

Recovery of Salaries

With TADM and ECT’s assistance, 94% of employees fully recovered their salaries in 2023, a marginal increase from 93% in 2022.

However, the fact that less than 1% of claims involved wilful non-payment by employers highlights a concerning disregard for legal obligations. These cases prompt investigations for potential Employment Act offences, revealing a need for stricter enforcement and deterrent measures.

Resolution of Wrongful Dismissal Claims

The incidence of wrongful dismissal claims increased slightly from 0.26 in 2022 to 0.32 per 1,000 employees in 2023.

Although 70% of these cases were resolved amicably at TADM, the drop from 86% to 79% of cases concluded within two months points to inefficiencies exacerbated by a higher volume of cases and mismatched expectations. This raises questions about the adequacy of current dispute resolution frameworks in addressing wrongful dismissal effectively.

Digitalisation and Workplace Practices: A Mixed Bag

In August 2023, TADM introduced the Employment Practices and Progressive Workplaces Shared Platform (EmPOWER), offering digital services aimed at streamlining dispute resolution.

While EmPOWER includes features such as an integrated chatbot, e-Negotiation tools, and digital signing capabilities, the reliance on technology also introduces challenges. The higher resolution rate of 38% in eligible claims through e-Negotiation compared to 32% via the previous portal suggests improvements, but it also highlights the limitations of digital-only interactions in resolving complex disputes.

Progress in Fair and Progressive Workplaces

The report touts the Tripartite Guidelines on Flexible Work Arrangement Requests and the upcoming Workplace Fairness Legislation as steps toward fostering progressive workplaces.

However, these measures appear insufficient in addressing systemic issues. The continued need for MOM to ensure employer compliance with progressive wage requirements for lower-wage workers suggests deeper-rooted problems in achieving true workplace fairness.

Education and Enforcement: A Continuing Battle

Despite MOM and TAFEP’s efforts to educate employees and employers on their rights and to uphold employment standards, the rising incidence of claims and appeals reveals a disconnect. The emphasis on dispute resolution, education, and enforcement highlights ongoing challenges in creating a truly fair and compliant workplace environment.

The full Employment Standards Report 2023 is available on the MOM website at go.gov.sg/esr2023.