Migrant worker wins appeal in $5,700 overtime pay case

Employer had illegally treated a fixed monthly allowance as overtime payment

- Toh Yong Chuan Assistant Business Editor

A migrant worker has won a two-year legal battle after the High Court overturned a lower tribunal's ruling and ordered his former employer to pay more than $5,700 in overtime.

In a decision on April 7, High Court Justice Philip Jeyaretnam allowed an appeal by Indian national Gena Hulash Ram against Lim Joo Huat Enterprise, finding the company's treatment of overtime pay unlawful.

The case turned on whether a fixed monthly allowance could be used to offset overtime pay. The court ruled that it could not, finding the approach incompatible with employment laws.

Mr Gena worked as a packer for the fresh produce wholesaler from December 2022 to August 2023.

Before he was hired, the Ministry of Manpower (MOM) issued an in-principle approval letter stating his basic salary as $1,000 a month, with two allowances: $200 for housing and $300 for “others”. His total fixed monthly pay was $1,500. The letter also set his overtime salary rate at $7.87 an hour.

The “others” allowance became the crux of the dispute.

In December 2023, Mr Gena filed a claim with the Employment Claims Tribunal for $5,711.11 in unpaid overtime.

His employer argued that overtime was covered by the fixed $300 monthly allowance, regardless of hours worked. This meant he would receive $300 whether he worked 20 hours of overtime or 40.