MOM: More salary & wrongful dismissal claims in S'pore in 2025, likely linked to retrenchments & business closures

Last year, salary and wrongful employment dismissal claims in Singapore rose to its highest levels since 2019.

This is according to the Ministry of Manpower (MOM) and the Tripartite Alliance for Dispute Management (TADM)'s joint Employment Standards Report, released on Jul. 24.

A total of 13,083 employment claims and appeals were lodged with MOM and TADM in 2025.

This marks an increase from 3.12 per 1,000 employees in 2024, to 3.44 per 1,000 employees in 2025.

More dismissals, retrenchments

MOM said that the rise in employment claims was closely linked to the increase in dismissals, retrenchments, and business closures in 2025.

As such, it was likely due to labour market conditions amid business reorganisations and restructuring, rather than a "broad-based deterioration of employment standards".

The report further noted that 43 per cent of claims were lodged by local employees, while the remaining 57 per cent were lodged by foreign employees.

Salary claims

Of the total appeals, 10,801 were salary claims, which saw an increase from 2.63 per 1,000 employees in 2024 to 2.84 per 1,000 employees in 2025.

The rise was largely driven by foreign employee claims, which surged from 4.64 per 1000 employees in 2024 to 5.16 per 1,000 employees in 2025.

Local employee statistics saw a comparatively more moderate upward trend, from 1.59 per 1000 employees in 2024 to 1.61 per 1,000 employees in 2025.

Among foreign employee claims, the construction sector continued to see the highest number of salary appeals at 46 per cent.

Food and beverage services made up 10 per cent and the professional, scientific and technical activities sector accounted for nine per cent of the claims.

According to the report, most salary disputes arose when employment ended, including disagreements over final salary payments and cases involving employers facing financial difficulties.

Salary claims

While there was an increase in cases from last year, 88 per cent of the salary claims were resolved at TADM. The remaining 12 per cent were referred to the Employment Claims Tribunals (ECT).

Around 92 per cent of employees fully recovered their dues, a slight dip from 94 per cent in 2024.

According to MOM, a "fully recovered" salary refers to the amount agreed between parties during mediation, or the amount ordered by ECT.

5 per cent of claimants recovered their salaries partially through settlement payments from security bond insurers and main contractors, or received financial assistance through TADM’s short-term relief fund or the assistance fund administered by the Migrant Workers’ Centre.

The remaining 3 per cent of employees, who were mainly high-income earners, did not recover their owed salaries.

The total recovered sum to employees increased from S$19 million in 2024 to S$22 million in 2025, consistent with the higher number of salary claims lodged in 2025.

MOM stated that non-payment of salary is an offence and MOM will investigate and take enforcement actions where appropriate, including warnings, composition fines and prosecution.

MOM also restricts access to foreign manpower for employers who do not fully pay their employees' salaries.

Wrongful dismissal claims trended higher for locals than foreign employees

There were 2,168 wrongful dismissal claims in 2025, up from 1,720 in 2024.

The increase was driven by a rise in claims made by local employees, from 0.54 per 1,000 employees in 2024 to 0.64 per 1,000 employees in 2025.

Meanwhile, foreign employee appeals saw a similar upward tick of 0.27 per 1,000 employees in 2024 to 0.44 per 1,000 employees in 2025.

Similar to previous years, locals made up the majority of such claims, MOM said.

Of the wrongful dismissal claims lodged in 2025, 67 per cent were resolved at TADM.

The remaining 33 per cent were referred to ECT for adjudication. This is a slight dip from 2024, where 71 per cent of cases were resolved at TADM.

In 65 per cent of cases resolved at TADM, employers were found to have fulfilled their contractual or statutory obligations, or were withdrawn after mediation.

The remaining 35 per cent involved some form of settlement by the employer such as making goodwill payments, allowing employees to resign or clearing up miscommunications.

Top image via One Raffles Place