Salary, wrongful dismissal claims up in 2025; TADM, tribunals help recover $22m owed to employees

Salary and wrongful dismissal claims went up in 2025 compared to the year before, the Ministry of Manpower (MOM) and Tripartite Alliance for Dispute Management (TADM) said on Friday (July 24).

Wrongful dismissals increased from 0.46 per 1,000 employees in 2024 to 0.57 in 2025. 

The follows their Employment Standards Report 2025, which indicated that the number of incidents involving salary claims increased from 2.63 per 1,000 employees in 2024 to 2.84 in 2025.

Salary claims lodged by local employees were primarily from the administrative and support service sector, followed by the professional, scientific and technical sector.

For foreign employees, the construction sector made up 46 per cent of salary claims lodged, consistent with the trend from 2024.

About 88 per cent of salary claims were resolved through TADM's mediation process, while the remaining 12 per cent were referred to the employment claims tribunal (ECT).

In total, 92 per cent of claimants were able to fully recover their salaries and payments via TADM and the ECT, the report said.

Five per cent recovered part of their salaries, while three per cent did not receive any payment.

Across all the successful claims, a total of $22 million due to employees was recovered, MOM and TADM stated.

MOM restricted foreign manpower access to employers who did not pay their employees their full salaries.

"Less than one per cent of the salary claims lodged in 2025 involved employers who willfully refused to make full payment for salary arrears despite having the means to do so," the statement added.

A third of wrongful dismissal cases referred to ECT

Of the cases reported and claims lodged, 67 per cent were resolved at TADM and the remaining 33 per cent were referred to ECT.

Notably, 65 per cent of the cases resolved at TADM were due to employers having already fulfilled their contractual or statutory obligations, or when cases were withdrawn following mediation.

In their joint statement, MOM and TADM also reminded employers to fulfil obligations under the Employment Act and Employment of Foreign Manpower Act.

This includes paying employees their full salaries, as well as doing so on time.

Failure to do so is an offence and MOM will take enforcement action where appropriate, issuing warnings, fines or prosecuting errant employers.

MOM and TADM also advised employees who do not receive their salaries on time to approach TADM as early as possible, or approach relevant unions for assistance.

Employment claims linked to job turnover

MOM and TADM also noted that the overall increase in number of employment claims and appeals is likely caused by labour market conditions.

In particular, businesses have been reorganising and restructuring, rather than employment standards having deteriorated.

"The incidence of employment claims is closely linked to job turnover — dismissals, retrenchments, and business cessations — all of which have trended upwards in 2025."

The report concluded that Singapore has strong dispute resolution mechanisms on top of MOM's education and enforcement efforts.

"MOM will continue to work together with tripartite partners, NTUC (National Trades Union Congress) and Singapore National Employees Federation (SNEF) to build fairer and more harmonious workplaces in Singapore," the report stated.

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