4 days ago
Singapore catering couple fined over RM235,000 each after failing to pay staff more than RM1.4m
SINGAPORE, July 26 — A married couple who ran several catering businesses, including Royal Cuisine Group and Tingkat Singapore, have each been fined S$72,000 (RM237,283) for failing to pay salaries to over 100 employees in Singapore, The Straits Times reported.
Wu Wenchun, 37, and Sim Ling Zhen, 31, pleaded guilty to 12 charges under the Employment Act. Each faces 66 weeks' jail if the fines are not paid. An additional 13 charges, including failure to report their change of residence, were taken into consideration during sentencing.
According to Singapore's Ministry of Manpower (MOM), the couple's companies — Royal Cuisine Group, Yanxi and Healthy Meals Catering — owed 103 employees a total of S$432,870.63 in unpaid salaries. Only S$73,420 has been recovered to date, The Straits Times said.
Sim was listed as the director, while Wu was the general manager. They were actively involved in running various food service brands, including Angel Confinement Meals, Happy Mamapapa Catering, Vegetarian Buffet, and the now-defunct Yanxi restaurant in Chin Swee Road.
Public complaints about the companies surfaced in 2022, when customers began reporting unfulfilled meal orders. MOM received its first formal complaint on July 20, 2022, from a Royal Cuisine employee about unpaid wages, The Straits Times reported.
Investigations revealed that the businesses were initially supported by investor Low Ting Hui, who helped fund operations and payroll. However, Low withdrew financial support in October 2022 following disputes over the companies' direction and use of funds, said MOM senior prosecuting officer Justine Loh.
'Despite meeting cash-flow issues and knowing that there would be difficulty in paying salaries to the employees, Wu and Sim decided to continue operating the companies, continue the employment of the employees, and opening other new businesses,' said Loh in court, as quoted by The Straits Times.
By December 2022, landlords had shut down the companies' premises due to unpaid rent. MOM said Wu and Sim failed to properly inform employees about the situation and left them without pay for up to three months.
The couple were also uncooperative with authorities, skipping mediation sessions, missing appointments, and failing to provide updated residential addresses during investigations, The Straits Times reported.
'Despite being provided with ample time to make salary restitutions to the affected employees, Sim and Wu did not make appreciable efforts to do so,' MOM said.
Most affected workers have since found new employment with assistance from the Tripartite Alliance for Dispute Management (TADM) and the NTUC Employment and Employability Institute, according to The Straits Times.
Under Singapore's Employment Act, employers who fail to pay salaries may face up to six months in jail, a fine of between S$3,000 and S$15,000, or both. Repeat offenders face stiffer penalties.
