'Such behaviour is irresponsible': MOM & CPF Board say Twelve Cupcakes failed to engage union early before laying off employees

After being placed under provisional liquidation, local bakery Twelve Cupcakes announced the company's sudden closure on Oct. 29.

This has left about 80 former employees without jobs, causing them "significant uncertainty and distress".

In response to Mothership's queries, spokespersons from the Ministry of Manpower (MOM) and Central Provident Fund (CPF) Board confirmed that they are aware that Twelve Cupcakes terminated the employment of about 80 employees on Oct. 29.

"Such behaviour is irresponsible"

Despite being a unionised company under the Food, Drinks and Allied Workers Union (FDAWU), the company failed to engage the union early, before notifying staff of their termination.

"Such behaviour is irresponsible and not aligned with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (TAMEM)," they said in a joint statement to Mothership.

MOM and CPFB emphasised that while retrenchments may sometimes be unavoidable, employers should treat their employees with care and respect during the process.

Provide help to affected employees

The agencies added that their immediate priority is to help the affected employees find new employment.

The Taskforce for Responsible Retrenchment and Employment Facilitation, which comprises MOM, Workforce Singapore (WSG), the National Trades Union Congress (NTUC), and NTUC’s Employment and Employability Institute (e2i), is working closely with Twelve Cupcakes and the FDAWU to support the affected employees.

This includes providing job matching support and career coaching for the affected employees.

Moreover, the Tripartite Alliance for Dispute Management (TADM) will also assist the affected employees who need to file a Proof of Debt for their salary and other employment claims with the liquidator.

Workers who require advice and assistance on salary claims can reach out to TADM at www.tal.sg/tadm/contact-us.

Meanwhile, the CPF Board will be filing a Proof of Debt with the liquidator to recover the outstanding CPF contributions for September and October.

MOM has also launched an investigation into Twelve Cupcakes' alleged non-payment of salaries and other potential breaches of the Employment Act, warning that it will take enforcement action and impose penalties if necessary.

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