Reste Laboratories Faces Charges for Unpaid CPF Contributions

A laboratory in Singapore, Reste Laboratories, has been charged with failing to pay Central Provident Fund (CPF) contributions for a number of its employees. On August 19, 2023, both the CPF Board and the Ministry of Manpower (MOM) confirmed that the case is currently before the court. The authorities are actively pursuing the matter, highlighting ongoing enforcement efforts to recover outstanding CPF payments.

According to court documents, Reste Laboratories is accused of neglecting to pay CPF contributions for ten employees. One employee reportedly has not received contributions for three consecutive months. In response to these allegations, the MOM is also investigating the company for potential unpaid wages under the Employment Act. The ministry has advised affected employees to file claims with the Tripartite Alliance for Dispute Management (TADM), which offers assistance in such matters.

Located in Toa Payoh, Reste Laboratories, also known as ResteLab, operates a clinical diagnostic laboratory within a facility spanning 20,000 square feet. The laboratory was established in 2016 and has since been part of the local healthcare landscape. A former employee indicated that he had lodged a complaint with the CPF Board earlier this year regarding the unpaid contributions.

The MOM emphasizes the importance of timely CPF contributions, which are due at the end of each month. Employers are required to communicate payment schedules to their employees. If they encounter difficulties in making these payments, they must prioritize the outstanding contributions and inform employees about the reasons for any delays.

Employees have the right to inquire about their CPF contributions and can request explanations regarding any late payments. The MOM further warns that if contributions are not made by the 14th of the following month, employers may incur late payment interest from the first day of the month after the due date.

Failure to pay CPF contributions can lead to significant penalties. Offenders may face fines ranging from S$1,000 to S$5,000 per violation, with possible imprisonment for up to six months, or both. For repeat offenders, both the maximum fines and potential jail time are doubled, underscoring the seriousness of compliance with these regulations.

As investigations continue, both the CPF Board and MOM remain committed to ensuring that employees receive their rightful contributions, affirming their role in safeguarding workers’ rights within the labor market.