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Singapore – Ministry of Manpower says it will take action against employers who misclassify employees for cost-cutting (The Straits Times)

24 March 2023

Singapore’s Ministry of Manpower will investigate cases of employers misclassifying employees to avoid employer obligations, and take action where warranted, reports The Straits Times. This includes cases where employers terminate their employees’ contract of service, but engage their services under conditions that effectively make them employees, it added. Senior Minister of State for Manpower Zaqy Mohamad said this on Wednesday in a response to a parliamentary question by Workers’ Party Member of Parliament (MP) Leon Perera.

Perera had asked about safeguards for full-time and part-time drivers on contract of service covered under the recently-expanded Progressive Wage Model (PWM). The MP added that these drivers may face contract termination and re-hiring as platform drivers by employers who are looking to cut costs. Under the new Occupational Progressive Wages for drivers, employers must meet wage requirements for them at various job levels, in addition to providing training and career pathways. Platform drivers are not covered under the PWM.