SINGAPORE: A Singaporean woman has found herself in a troubling situation after a Korean restaurant allegedly continued crediting her salary and CPF contributions even after she resigned.
On Friday (May 9), her son took to the r/askSingapore Reddit forum to seek advice on the matter. In the post, he explained that his mum had been working part-time at a Korean eatery for several months before resigning roughly two months ago. However, a month after her departure, the company “accidentally” credited her salary and requested that she return the full amount. Believing it to be a one-time mistake, she promptly complied.
But the issue did not end there. According to the post, the company repeated the action this month, once again transferring a salary she did not earn, as well as making CPF contributions to her account. She was again asked to return both the wages and CPF amounts.
This repeated pattern raised red flags for her son. He now suspects that the company may be using her CPF records to falsely inflate the number of local employees on their books, possibly to meet “foreign worker quota” requirements and secure “more employment passes.”
“They are asking my mum to PayNow the amount they transferred to her bank and CPF. Is my mum a ‘phantom worker’ in her previous workplace?” he asked the local community. “Should we report this to the police and MOM? As we saw a similar case on this from the news.”
“Please do not transfer CPF money back in cash.”
The post quickly caught the attention of Singaporean Reddit users, who shared their thoughts on whether the employer’s actions could be considered fraudulent or in violation of CPF and employment regulations.
One user said, “Better inform MOM. This is illegal. One day, if they find out, your mother will also get in trouble. Companies use these tactics to add local headcount to employ foreigners.”
Another commented, “Please do not transfer CPF money back in cash. The company can file a refund from CPF itself; the employee or ANYONE should NOT be returning any CPF in cash. Please report this to MOM.”
A third added, “In these kinds of scenarios, you should always go to MOM and get them to advise you. If it feels sus, then it is likely sus.”
A fourth, meanwhile, gave her mum’s employer the benefit of the doubt, stating, “Assuming it’s a legit mistake, return the cash salary and make sure they acknowledge it. Ask them to go seek a refund from CPF.”
Can resigned employees receive CPF contributions?
As per the Ministry of Manpower (MOM), employers are required to make CPF contributions only for active employees.
This includes Singapore Citizens (SCs) and Singapore Permanent Residents (SPRs) who are employed in Singapore under a contract of service, whether on a permanent, part-time, or casual basis.
Penalties for using phantom workers
According to Singapore Legal Advice, employers who use phantom workers to artificially increase their foreign worker quota can face serious penalties. Falsely declaring the number of local workers in a work pass application or renewal is an offence under the Employment of Foreign Manpower Act (EFMA). Offenders may face a fine of up to S$20,000, imprisonment for up to two years, or both. Additionally, MOM can suspend the employer’s ability to hire foreign workers in the future.
If anyone is aware of such activities, they can report them confidentially to MOM through their website. MOM takes data confidentiality seriously and assures that the identity of the informant will remain strictly private.
Featured image by Depositphotos (for illustration purposes only)