Unpaid migrant workers case: Company faced 5 wage-related claims in 2025

Five workers had previously filed unpaid wage claims against KPA Engineering in 2025, prior to the incident on June 22 when over 100 migrant workers approached the Ministry of Manpower (MOM), said Dr Tan See Leng.

In a written parliamentary reply on Tuesday (July 7), the Minister for Manpower said MOM has an existing framework to proactively monitor salary-related risks and protect workers.

He was responding to questions raised by Yio Chu Kang SMC MP Yip Hon Weng and Chua Chu Kang GRC MP Choo Pei Ling.

Dr Tan referenced the recent incident involving 407 workers from KPA Engineering, SK Industries, and VVR Plant Engineering, who approached MOM and the Tripartite Alliance for Dispute Management (TADM) with long-term unpaid salary claims.

All three companies were headed by the same director, Ramu Palani Velu, who returned to Singapore on June 28 to assist with investigations.

In particular, the three companies are being investigated for offences under the Employment Act and the Employment of Foreign Manpower Act.

"MOM will thoroughly investigate the case and decide on appropriate enforcement actions after investigations have been completed," said Dr Tan.

Claims filed against KPA Engineering in 2025

According to Dr Tan, five workers from KPA Engineering had approached TADM last year regarding salary non-payment.

All cases were resolved within a week, with the workers receiving payment.

Additional claims by four other workers were also filed in May this year, which were in the midst of being processed before the larger group of workers approached MOM in June.

Dr Tan also said that MOM had taken action against KPA Engineering and VVR Plant Engineering this year due to levy defaults, and restricted their work pass privileges in April and early June.

"This means that the companies have not been able to hire new foreign workers since then," he explained.

Investigating unpaid salaries

MOM proactively monitors salary-related risks using indicators such as worker feedback and salary claims, late payment patterns via payment records, levy defaults, and other signs of financial or employment irregularities, said Dr Tan.

The ministry conducts targeted inspections to identify if there have been any employment breaches, in event of such patterns of delayed or unpaid salaries.

Additionally, Dr Tan said that MOM typically investigates other companies under the same director, if the director is found to be in breach of employment obligations.

"Where employers face genuine difficulties and act responsibly to resolve them, we give them a chance to resolve their issues and make good their obligations," he said, emphasising that deliberate or prolonged evasion will result in penalties.

Employers who fail to pay salaries may be fined between $3,000 and $15,000 per charge and/or jailed for up to six months.

Support for affected workers

In the meantime, MOM is focused on ensuring the well-being of affected workers, said Dr Tan.

Affected workers have been rehoused, and MOM has granted them Special Passes to allow them to remain in Singapore while they search for new employment.

More than 130 workers have since found jobs with new employers, Dr Tan said.

"Protecting all workers and ensuring they are paid their salaries on time is a priority for the MOM," said Dr Tan, adding that MOM will continue to review and strengthen processes by incorporating lessons learnt from the case.

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