Advocating for workers facing unpaid wages

How can your salary rights be better protected during sudden company closures?

Advocating for workers facing unpaid wages is a critical priority, ensuring they are not left behind when companies close abruptly. 

I raised questions in Parliament on 13 January 2026 regarding wage non-payment issues, questioning why we still lack mandatory wage recovery insurance and personal liability for directors. The Minister highlighted existing priority rankings for unsecured debts and the Short-Term Relief Fund but did not address these specific legislative gaps. This response remains inadequate because without tracking full data or implementing tougher measures, we cannot fully protect workers’ livelihoods.

Looking forward, I have filed four follow-up Parliamentary Questions for the upcoming sitting on 8 July 2026. I am continuing to push for proactive investigations before liquidation happens and asking why the authorities do not track the total number of affected workers. I am also advocating for mandatory wage recovery insurance, personal liability for company directors, and an interim emergency payout within one week of company closures to better protect employees.

Read the full questions and answers below.

Support for Employees Affected by Abrupt Closure of Companies and Proposal to Amend Insolvency, Restructuring and Dissolution Act 2018 to Prioritise Payout to Employees (13 Jan 2026)

Mr Gerald Giam Yean Song asked the Minister for Manpower for each of the last three years (a) how many workers have been affected by corporate liquidations and what is the total quantum of unpaid wages; (b) how many workers received payouts from the short-term relief fund; and (c) what is the total amount disbursed to these affected individuals to help them tide through financial difficulties following the abrupt closure of their employers.

Mr Gerald Giam Yean Song asked the Minister for Manpower whether the Ministry will explore (i) mandatory wage recovery insurance, (ii) personal liability for directors for unpaid salaries and (iii) amending the Insolvency, Restructuring and Dissolution Act 2018 to prioritise employees over secured creditors by default without requiring employees to file claims with the Tripartite Alliance for Dispute Management, to deter irresponsible business closures and ensure workers are paid first.

Dr Tan See Leng: When businesses wind up, including preparing for and during liquidation proceedings, firms should act responsibly and ensure that workers’ salaries are paid on time to the best of their abilities.

The Government fully recognises the importance of employees’ claims on salaries in the event of their employers winding up. In the Insolvency, Restructuring and Dissolution Act, employees’ claims are already ranked first and above all other unsecured debts, and are behind only the costs and expenses of administration, which are necessary for the winding up to proceed smoothly.

We have measures in place to support employees and ensure responsible business practices. The Ministry of Manpower (MOM) investigates and takes action against employers who breach employment legislation when winding up, including those who wilfully do not pay salaries despite having the means to do so. If employers truly cannot pay their salary arrears due to business failure, the Short-Term Relief Fund (STRF) is available to provide financial assistance to eligible local lower-income workers.

Between 2023 to 2025, about $600,000 was disbursed from the STRF to 260 workers who did not receive their salaries due to corporate liquidation. MOM does not track the total number of workers with unpaid wages due to corporate liquidations.

We also provide workers who have lost their jobs with support to search for and take on new jobs with good longer-term prospects. Local workers may tap on career matching services and training programmes offered by Workforce Singapore (WSG), SkillsFuture Singapore and Employment and Employability Institute, and may also receive temporary financial support under the SkillsFuture Jobseeker Support scheme. Lower-income households who require financial assistance to meet basic needs may also approach their Social Service Office.

Beyond measures to support displaced workers, the Government encourages and supports Singaporeans to take care of their career health and stay relevant in their jobs. Under the Career Health SG programme, workers can tap on various tools to do so, such as the CareersFinder feature on WSG’s MyCareersFuture job portal and the Polaris career guidance programme. Such programmes help workers to be better equipped to navigate challenges and stay resilient in their careers.

Source: Singapore Parliament Reports (Hansard)

Questions Filed for 8 July 2026:

*Mr Gerald Giam Yean Song: To ask the Minister for Manpower (a) what are the reasons for not introducing mandatory wage recovery insurance and personal liability for company directors for unpaid salaries; and (b) what legislative hurdles exist in amending the Insolvency, Restructuring and Dissolution Act 2018 to prioritise employees over secured creditors.

*Mr Gerald Giam Yean Song: To ask the Minister for Manpower (a) what specific thresholds of non-payment or delayed Central Provident Fund contributions trigger an active, proactive investigation into an employer before corporate liquidation proceedings begin; and (b) how many such proactive investigations have been conducted by the Ministry in the past year.

Mr Gerald Giam Yean Song: To ask the Minister for Manpower (a) why the Ministry does not track the total number of workers with unpaid wages due to corporate liquidations; (b) how it accurately assesses the full scale of the wage arrears problem and evaluates the adequacy of existing financial safety nets without this baseline data; and (c) whether the Ministry will begin tracking such data to improve policy reviews.

Mr Gerald Giam Yean Song: To ask the Minister for Manpower (a) whether the Ministry proactively informs retrenched local, low-wage workers about the Short-Term Relief Fund soon after employers submit retrenchment notifications or enter liquidation; and (b) whether it will consider an interim emergency payout within one week of company closure, given that current disbursements take one to two months after claim verification.

* denotes a question for oral answer