Singapore saw a sharp rise in employment disputes in 2024, with salary claims reaching their highest level since 2019.
The Ministry of Manpower (MOM) and the Tripartite Alliance for Dispute Management (TADM) reported 9,848 salary claims last year.
This translated to an incidence of 2.63 claims per 1,000 employees, up from 2.19 in 2023.
The level is slightly below the pre-pandemic rate of 2.68 in 2019.
Total claims and recovery figures
Altogether, MOM and TADM handled 11,685 employment claims and appeals in 2024, nearly 2,000 more than in 2023.
The majority were salary disputes, while 1,720 cases involved wrongful dismissal.
Employees recovered a total of S$19 million through salary claims in 2024, up from S$14 million the year before.
This marks the highest recovery sum in recent years, reflecting the increase in claim volumes.
Local and foreign employee trends
Local employees accounted for 46 per cent of all claims, while foreign workers lodged the remaining 54 per cent.
The incidence of salary claims among locals rose from 1.32 per 1,000 in 2023 to 1.59 per 1,000 in 2024.
Foreign employees, however, faced a much higher incidence rate, climbing from 3.91 per 1,000 in 2023 to 4.64 in 2024.
MOM attributed this to persistent difficulties in sectors reliant on foreign labour, particularly construction.
Key sectors affected
Among local employees, the information and communications sector overtook other industries in 2024, becoming the top contributor to salary claims.
MOM and TADM noted that several firms in this sector faced cash flow issues, leading to disputes.
This sector alone accounted for 13 per cent of local claims, surpassing administrative and support services (11 per cent) and food and beverage (10 per cent).
For foreign employees, the construction sector continued to dominate, contributing 47 per cent of claims.
Administrative support services and food and beverage each made up 9 per cent.
MOM highlighted that many construction firms had experienced business failures, financial strain, or liquidation.
Nature and duration of claims
The most common claim items among local employees were basic salary, salary in-lieu of notice, and payment for unused annual leave.
For foreign employees, disputes centred on basic salary, overtime pay, and wages for work on rest days and public holidays.
The median claim amount for locals has risen in line with wage growth, though specific figures were not disclosed.
Median claim duration remained at about one month of salary for locals, while for foreign employees it has declined to two months, from over three months in 2019.
Resolution outcomes at TADM and ECT
Nine in 10 salary claims were resolved at TADM in 2024, slightly above the 88 per cent recorded the previous year.
However, cases took longer on average to conclude. About 13 per cent required between two and six months to resolve, compared with 10 per cent in 2023.
Overall, 94 per cent of employees fully recovered their salaries through TADM and the Employment Claims Tribunals (ECT).
Another 4 per cent received partial recovery via settlement payments from bond insurers or financial assistance schemes. The remaining claims, often lodged by higher-income workers, were not recovered.
MOM also barred employers who failed to repay staff from applying for or renewing work passes for foreign employees. Less than 1 per cent of cases involved employers who wilfully withheld arrears despite having the means to pay.
Rise in wrongful dismissal claims
Wrongful dismissal cases also grew in 2024, with 1,720 claims recorded.
This translated to an incidence of 0.46 claims per 1,000 employees, up from 0.32 in 2023.
The rate was higher among locals, at 0.56 per 1,000, compared with 0.27 for foreign employees.
Of these cases, 71 per cent were resolved at TADM, while 29 per cent proceeded to the ECT.
In 61 per cent of resolutions, employers were found to have met their obligations or cases were withdrawn.
The remaining 39 per cent involved settlements such as goodwill payments or provision of certificates of service.
Employers paid a total of about S$2.14 million in wrongful dismissal claims in 2024, an increase from S$1.72 million in 2023.
Broader employment standards and upcoming laws
Alongside dispute resolution, MOM introduced several measures to strengthen employment protections.
The Platform Workers Act took effect in January 2025, providing Central Provident Fund contributions, work injury compensation, and representation rights for gig workers.
Additionally, the Tripartite Guidelines on Flexible Work Arrangement Requests came into force in December 2024, setting structured processes for employees to request flexi-time, flexi-place, or workload adjustments.
The first Workplace Fairness Act, passed in January 2025, will be implemented by 2026 or 2027.
It seeks to prohibit discrimination on grounds including age, sex, race, religion, disability, and caregiving responsibilities.
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