Couple Fined After Failing to Pay Over S$432,000 in Salaries to 103 Employees

A Singaporean couple who managed several food catering companies was recently fined heavily for withholding wages from more than 100 workers between August and December 2022.

Background

Sim Ling Zhen (31), a director, and her husband Wu Wenchun (37), the general manager, oversaw operations for companies including Royal Cuisine Group, Yanxi, and Healthy Meals Catering, which operated brands such as Tingkat Singapore, Angel Confinement Meals, Happy Mamapapa Catering, and Vegetarian Buffet.

Wage Arrears and Court Outcome

Between August and December 2022, approximately 103 employees were owed a total of S$432,000 in unpaid salaries. Only around S$73,000 was eventually paid. On July 25, 2025, both individuals were convicted on multiple charges under the Employment Act, each fined S$72,000. Should they default on payment, they face 66 weeks’ imprisonment.

Offences and Company Operations

Sim and Wu faced 24 salary-related charges each, pleading guilty to 12 charges with the remaining counts taken into account during sentencing. The firms’ operations abruptly ceased in December 2022 due to unpaid rent and business disruptions, leaving many employees uninformed and owed wages for up to three months.

Employee Impact and Government Support

Affected local workers have since found new employment. The Ministry of Manpower (MOM) and the Tripartite Alliance for Dispute Management (TADM) helped with salary claims, including lodging Employment Claims Tribunal cases. The organisations also facilitated financial aid via NTUC’s e2i and other assistance schemes, with 46 eligible employees receiving help through the Short‑Term Relief Fund and Migrant Workers’ Assistance Fund.

Ministry’s Stance on Non‑Payment of Employment Wages

MOM emphasised its firm approach towards enforcing employer obligations. Under the Employment Act, failing to pay wages constitutes a criminal offence. Employers may face fines between S$3,000 and S$15,000, jail terms up to six months, or both—penalties can be doubled for repeat offenders.

What Led to the Collapse

Public reports and consumer complaints in late 2022 highlighted failures to deliver prepaid catering orders across multiple brands under the corporations’ umbrella. According to testimonies, internal disputes and abrupt shutdowns—including deletion of customer databases by investors—barred the companies from fulfilling obligations, contributing to both consumer losses and wage defaults.

Sim’s role extended beyond the three companies; she was reportedly a director of more than 35 F&B-linked firms, many of which ended operations under similar circumstances. Records show that multiple brands—including Sakura Buffet and others supplied by it—ceased operations amid financial difficulties and regulatory issues.

Restitution and Final Thoughts

As of court proceedings, only a fraction of the owed salaries was repaid. The individuals were penalised in line with repeat offence protocols. MOM reiterated that employers uncooperative with mediation, or those who obstruct investigations, will face stronger enforcement measures.

Lessons Learned

  • Legal compliance is mandatory: Employers must pay wages within seven days of the salary period’s end.
  • Employee recourse avenues: Workers unpaid can seek help through MOM, TADM, and employment tribunals.
  • Corporate governance matters: Operating multiple brands without transparency can lead to severe legal and operational fallout.

Share Article:

Leave a Reply

Your email address will not be published. Required fields are marked *

DMB

Our journey at DMB.SG is fueled by a vision to revolutionize digital marketing for businesses of all sizes.

We combine creativity and technical expertise to deliver tailored, innovative strategies in this fast-paced digital world, ensuring adaptability and excellence in every project.

Edit Template

© 2024 Develop by DMB