Directors can be held accountable for unpaid salaries across multiple companies, MOM clarifies

Following a large-scale salary arrears case involving more than 400 migrant workers, the Ministry of Manpower says it will look beyond individual corporate entities to identify who exercises effective control over employment and payment decisions.

The Ministry of Manpower (MOM) has reaffirmed that it will look beyond individual corporate entities when investigating unpaid salary cases, saying directors may be held accountable across multiple companies where they exercise effective control over employment and payment decisions.

The clarification came in a Parliamentary response on 7 July 2026, after Members of Parliament asked whether the ministry assesses related companies as a group when they share a common director and are involved in alleged salary non-payment.

The questions followed a recent case involving KPA Engineering, SK Industries, and VVR Plant Engineering, where 407 migrant workers filed salary claims against the three companies.

Providing an update, MOM said investigations into possible offences under the Employment Act and the Employment of Foreign Manpower Act are ongoing.

The ministry shared that all affected workers requiring alternative accommodation have been rehoused and issued Special Passes to remain in Singapore while seeking new employment. More than 130 workers have already secured new jobs, with MOM continuing to work alongside the Migrant Workers' Centre and the Singapore Contractors Association to facilitate further transfers.

How MOM monitors salary-related risks

Addressing broader questions on worker protection, MOM outlined the indicators it uses to proactively detect employers at risk of salary non-payment.

These include:

• worker feedback and salary claims;
• patterns of late salary payments identified through payment records;
• levy defaults, and
• other signs of financial or employment irregularities.

Where these indicators point to a pattern of delayed or unpaid salaries, the ministry conducts targeted inspections to identify potential employment breaches.

MOM added that employers facing genuine short-term cash flow difficulties may be given an opportunity to rectify the situation and fulfil their salary obligations, allowing businesses to continue operations where appropriate.

However, the ministry stressed that it will take firm enforcement action where there is deliberate or prolonged evasion of salary obligations or misuse of corporate structures. Employers found guilty of failing to pay salaries may face fines ranging from S$3,000 to S$15,000 per charge, imprisonment of up to six months, or both.

Looking beyond individual companies

Responding specifically to questions on companies with common directors, MOM said that investigations are not limited to a single legal entity.

"When investigating a company, if the director is found to be in breach of employment obligations, MOM will typically investigate other companies under the same director," the ministry said.

It added that where salary non-payment occurs across multiple companies, the director may face penalties for all cases, with every instance of non-payment taken into account when determining enforcement action.

"MOM will look beyond individual companies to examine who exercises effective control over employment and payment decisions, and take enforcement action accordingly."

Early warning signs in the ongoing case

The ministry also outlined the sequence of events leading up to the current investigations.

According to MOM, five workers from KPA Engineering had individually approached the Tripartite Alliance for Dispute Management (TADM) in 2025 over unpaid salaries. Those cases were resolved within a week after TADM intervened. A further four salary claims submitted before 22 June 2026 were still being processed.

Separately, MOM curtailed KPA Engineering's and VVR Plant Engineering's work pass privileges in April and early June 2026 respectively after levy defaults, preventing the companies from hiring new foreign workers. SK Industries had also previously defaulted on levy payments, although its work pass privileges were later reinstated after the outstanding levies were settled.

The ministry added that it became aware on 8 June of a dormitory eviction notice affecting many KPA Engineering employees. During follow-up engagements with workers, MOM found that many had experienced salary delays and contacted the company's directors before 196 workers formally approached the ministry with salary claims on 22 June.

Concluding its response, MOM said protecting workers and ensuring timely salary payment remains a priority, adding that it will continue reviewing and strengthening its processes and safeguards based on lessons from the ongoing case.

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