CPF investigating headhunting firm accused of making staff pay employer's share of CPF
Local headhunting firm Kerry Consulting is under probe after several ex-employees accused it of deducting employer CPF contributions from their pay and bonuses.
The Central Provident Fund (CPF) Board is investigating the company after more than 10 former staff members filed complaints.
Two Stompers, who wished to remain anonymous, alerted Stomp to the case in which some employees claimed that the company even deducted the employer's CPF share from their base salary, thus violating CPF regulations.
'Why am I paying my employer's CPF?'
One ex-employee said his payslip showed that his fourth-quarter bonus of $25,130.80 in 2023 had both the employee ($4,080) and employer ($3,468) CPF portions deducted, reported 8world News.
"Why must I also pay the employer's part? This means the employee effectively pays for two portions of CPF," he said.
Others said they noticed similar deductions from their commissions and bonuses.
Some stayed silent for fear of losing their jobs
One former staff member said he thought the deductions was an industry practice when he first joined, but later realised it was not normal.
Another alleged she was told to sign her contract on the spot and not allowed to take it home to read.
A third ex-employee said the company claimed it had made checks with a lawyer, and was told the deductions were legal, only to find out the lawyer was a friend of the boss.
He admitted that the situation did not sit right with the employees, but they were worried that speaking up would cause them to get fired.
Some added that it was only because a few employees came forward in recent years that others found the courage to lodge complaints.
Company: 'We follow CPF Board regulations
When contacted, Kerry Consulting's senior operations manager, Trisna, declined to give a written response.
She explained to the media over the phone that the company abides by CPF Board regulations, and that it would continue to comply with them.
Asked about the complaints filed by former employees, she declined to comment, but said Kerry Consulting has operated in the industry for many years without problems.
CPF Board: Employers must pay their share of CPF
In response to media queries, the CPF Board confirmed it is aware of the allegations and is investigating.
It reminded employers that under the CPF Act, the employer's share of CPF must be fully borne by the employer.
Any employer who deducts more than an employee's rightful CPF contribution may face fines or prosecution.
The CPF Board added that any contract allowing an employer to deduct their CPF share from employees' pay is illegal, and employees who encounter this should report it immediately.
HR expert: Even signed contracts don't make it legal
Human resource specialist Jennifer Loh, who has 21 years of experience, said such clauses are not legally valid, even if employees have signed the contracts.
According to her, some companies try to mask CPF deductions with vague wording to cut costs.
"On paper, the law protects employees. But in practice, there may be occasions enforcement is more lenient, so some employers take their chances," she added.
