In 2022, Singapore saw a marked increase in employment-related disputes, particularly in salary claims and allegations of unfair dismissal. The spike came as many businesses faced financial headwinds, impacting their ability to meet wage obligations and maintain fair employment practices. Despite the rise in claims, most were efficiently resolved through established mediation channels, according to the Ministry of Manpower’s (MOM) Employment Standards Report 2022.
Sharp Increase in Salary Claims
The number of salary-related claims filed rose by 26% in 2022, reaching 6,123 cases-up from 4,848 the year before. Much of this increase was driven by group claims from workers employed in financially distressed or failing businesses.
The most affected sectors included information and communications, construction, and administrative and support services. Among local employees, these sectors showed the highest number of complaints. Similarly, foreign workers-especially those in the construction industry-saw an uptick in disputes regarding unpaid or delayed wages.
Overall, the incidence of salary claims rose to 1.68 per 1,000 employees in 2022. While this marked an increase from 1.43 in 2021, it remained below the pre-pandemic level of 2.68 per 1,000 employees recorded in 2019.
Effective Mediation Through TADM
The Tripartite Alliance for Dispute Management (TADM) played a key role in resolving salary-related grievances. In 2022, 86% of claims were successfully mediated at TADM, with 90% resolved within two months of filing. The remaining 14% were escalated to the Employment Claims Tribunals (ECT) for further adjudication.
A notable outcome was the high recovery rate of owed wages. Of all employees who filed salary claims, 93% managed to fully recover their wages, amounting to approximately S$12 million-up from S$8.6 million in 2021. An additional 4% of workers recovered partial amounts, while 3% were unable to recoup any wages, a group largely consisting of higher-income earners.
To hold employers accountable, MOM enforced penalties on companies that failed to meet their obligations. Employers who did not repay wages in full had their work pass privileges suspended.
Wrongful Dismissal Claims Remain Steady
While salary disputes saw a sharp rise, the number of unfair dismissal claims remained relatively stable. In 2022, 946 such claims were filed, a slight increase from 922 in 2021. This translated to an incidence rate of 0.26 claims per 1,000 employees-just below the 0.27 rate recorded the previous year.
Among the assessed claims, 25% were found to be substantiated. Of these, 70% were resolved at TADM, while the rest were referred to the ECT. Many of the unsubstantiated claims stemmed from performance issues or miscommunication between employer and employee, rather than clear breaches of employment rights.
TADM maintained its efficiency, with 84% of wrongful dismissal claims resolved within two months.
Digital Transformation Enhances Dispute Resolution
In response to rising caseloads and to improve accessibility, TADM enhanced its digital platform in 2022. Its Online Dispute Resolution (ODR) portal was upgraded to handle multiple claims and support remote mediation sessions. As a result, the number of claims processed through the ODR system more than doubled from 430 in 2021 to 1,000 in 2022.
These digital improvements not only increased operational efficiency but also broadened access to dispute resolution services for both employees and employers-particularly important during pandemic-related restrictions and economic uncertainties.
Maintaining Fair Employment Standards
Singapore’s ability to efficiently resolve employment disputes reflects its robust labor framework. The tripartite approach-collaborating among the government, unions, and employers-continues to support fair workplace practices while addressing systemic challenges.
Although the increase in claims underscores the pressures faced by businesses and workers alike, it also highlights the effectiveness of Singapore’s mediation systems in preserving employment standards. Continuous efforts in enforcement, public education, and digital innovation are expected to strengthen employment resilience in the years ahead.