Biz owner concerned foreign employee with cancelled work pass exploiting Work Injury Compensation Act
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A small business owner is concerned that a foreign employee is exploiting the Work Injury Compensation Act (WICA) at the expense of the employer.
WICA lets employees make claims for work-related injuries or diseases without having to file a civil suit under common law. It is a low-cost and quicker alternative to common law for settling compensation claims.
Stomper Szeto said: "In our case, the employee's work pass was cancelled due to prolonged absence from work.
"However, he was subsequently issued a Special Pass that allows him to remain in Singapore while his claim is pending.
"During this period, he has sought medical treatment from multiple hospitals, creating uncertainty and prolonging the claims process."
The Stomper said her business is facing challenges because of the employee's ongoing claims.
"Employers have limited ability to intervene or clarify matters, yet we continue to bear administrative and financial burdens while operations are disrupted," explained the business owner.
"We are also concerned that some law firms may be encouraging workers to maximise claims, which raises questions about whether the system strikes a fair balance between protecting employees and safeguarding employers from abuse.
"This is not an isolated case. Similar concerns have surfaced in past cases involving food and retail businesses, where employers felt that the claims process was stretched beyond its intended purpose."
The Stomper urges the authorities to review the current framework to ensure:
- Clearer safeguards against multiple overlapping medical assessments.
- More transparency in the role of legal representatives in work injury claims.
- A fairer balance between employee rights and employer obligations. As employers, we want to do right by our workers, but we also need a process that is fair, transparent, and not open to exploitation.
The employer added: "While we respect the intent of the law to protect employees who suffer genuine workplace injuries, we are concerned about how the current process can be misused in ways that place employers in a difficult position."
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