Unpaid migrant workers case: Earlier salary complaints resolved in 2025 before mass claims were filed, says Tan See Leng
The Ministry of Manpower curtailed work pass privileges of KPA Engineering and VVR Plant Engineering in April and early June 2026 respectively, and the companies have not been able to hire new foreign workers since.
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SINGAPORE: Five workers from KPA Engineering – one of three companies under investigation after more than 400 migrant workers filed unpaid salary claims last month – first approached the Tripartite Alliance for Dispute Management (TADM) individually in 2025 over similar complaints, which were subsequently resolved.
"Following assistance from TADM, all cases were resolved within a week with the workers receiving payment from the employer," Manpower Minister Tan See Leng said in a written parliamentary reply on Tuesday (Jul 7).
More claims later emerged from four other KPA Engineering workers in May 2026. These claims were in the midst of being processed, said Dr Tan, when close to 200 workers sought help from the Ministry of Manpower (MOM) over unpaid wages in late June.
MOM had curtailed work pass privileges of KPA Engineering and another firm, VVR Plant Engineering, in April and early June 2026 respectively due to levy defaults.
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"This means that the companies have not been able to hire new foreign workers since then," said Dr Tan.
Migrant workers’ rights group Transient Workers Count Too (TWC2) had noted in a Facebook video post in late June that MOM was already alerted about salary issues from KPA Engineering.
"The company has a history of not paying their workers properly. Across 2025 and 2026, TWC2 helped 6 workers with salary issues from this company," vice-president Alex Au said in a video.
Another company, SK Industries, whose workers are among those affected by the unpaid salary case, had also defaulted on its levies previously, but its work pass privileges were reinstated after the owed levies had been paid up, Dr Tan said.
MOM also learnt about the workers' salary issues when it was informed of a dormitory eviction notice on Jun 8, which affected many KPA Engineering workers.
"(We) stepped in to assist the affected workers and understand the situation. At this point, we also spoke to the workers and found that many of them were facing salary delays," said Dr Tan.
The ministry then took steps to contact the company directors before the large group of workers approached MOM on Jun 22.
On Jun 22, 196 migrant workers from KPA Engineering and SK Industries approached MOM with unpaid salary claims. TADM and the ministry assisted the workers in lodging salary claims, conducted well-being checks, and addressed their food and housing needs.
More workers, including employees from VVR Plant Engineering, subsequently approached MOM and were also given assistance.
A total of 407 salary claims have been filed against the three companies, and the ministry has commenced investigations into the three companies for offences under the Employment Act and the Employment of Foreign Manpower Act.
Providing an update on the workers, Dr Tan said all affected workers who require alternative accommodation have been rehoused. The workers have also been issued Special Passes, which will allow them to remain in Singapore while searching for new employment.
More than 130 workers have found jobs with new employers, and MOM will continue to work with the Migrant Workers’ Centre (MWC) and the Singapore Contractors Association to facilitate transfers for the rest of the workers who wish to continue working in Singapore, said Dr Tan.
TADM has also processed the majority of claims from the affected workers, and referred them to MWC for financial assistance.
The non-governmental organisation will extend financial assistance to the affected migrant workers via its charity arm, the Migrant Workers’ Assistance Fund, depending on the circumstances of each case, which would address a "good portion of their owed salaries", said Dr Tan.
THREE COMPANIES, ONE DIRECTOR
The three companies have a common director, Singapore permanent resident Ramu Palani Velu, listed in public records.
Addressing questions about salary non-payment across companies with a common director, Dr Tan said MOM will typically investigate other companies under the same director when looking into a company in which the director is found to have breached employment obligations.
"If there is non-payment across multiple companies, the director can be subject to penalties for all cases, and all instances of non-payment will be considered in meting out penalties," said the minister.
"MOM will look beyond individual companies to examine who exercises effective control over employment and payment decisions, and take enforcement action accordingly."
Protecting all workers and ensuring they are paid their salaries on time is a priority for MOM, and the ministry will continue to review and strengthen its processes and safeguards to do so, incorporating the lessons from the ongoing case, Dr Tan added.
The employer, Mr Velu, is currently assisting with investigations, and MOM will thoroughly investigate the case and decide on appropriate enforcement actions after investigations have been completed.
Non-payment and late payment of salaries are offences under the Employment Act and the Employment of Foreign Manpower Act.
"MOM proactively monitors salary-related risks using indicators such as worker feedback and salary claims, late payment patterns via payment records, levy defaults, and other signs of financial or employment irregularities.
"Where these indicate a pattern of delayed or unpaid salaries, MOM conducts targeted inspections to identify if there have been any employment breaches," said Dr Tan.
In some cases, employers may miss salary payments due to short-term cash flow issues.
Where employers face genuine financial difficulties and act responsibly to resolve them, MOM will give them the opportunity to make good on their obligations so they can continue operating and sustain employment for their workers, Dr Tan said.
But if there is a deliberate or prolonged evasion or misuse of corporate structures, the ministry will take firm action, he added.
Employers who fail to pay salaries may face fines of between S$3,000 and S$15,000 (US$2,300 to US$11,600) per charge, jail term of up to six months, or both.
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