Singapore

77 employees have filed salary claims against start-up Honestbee

77 former employees have filed claims, 16 cases scheduled for mediation this month

A total of 77 former employees of struggling start-up Honestbee have filed claims for unpaid salaries as of last Wednesday.

Of these, 16 claims were filed since last month and their cases are scheduled for mediation this month, the Ministry of Manpower (MOM) said in response to media queries.

Honestbee has been required to provide MOM an update on its plans for salary payment to its current employees.

The firm said last week that it had laid off around 80 per cent of its 130 employees in Singapore, and that it was delaying payment of salaries and Central Provident Fund (CPF) contributions to employees "until further funding can be secured".

The Straits Times understands that a reason for the layoffs was Honestbee's investors' unwillingness to provide funding for the payment of salaries to employees who had no work.

MOM confirmed that the start-up owes its employees salaries for last month, as well as their CPF contributions for both January and last month.

A spokesman for MOM noted that Honestbee had committed to a repayment schedule for former employees over five instalments from Sept 30 last year.

Honestbee had complied with the repayment schedule except for the final instalment, which was due on Jan 31 to 45 former staff members, as well as CPF contributions due to 38 ex-employees on Feb 14, said MOM.

Honestbee had owed more than 200 of its former employees around $1 million in unpaid salaries and CPF contributions.

MOM and the Tripartite Alliance for Dispute Management (TADM) have warned the firm to prioritise the final instalment to affected employees, and will continue to monitor the repayment.

In its statement, MOM urged all current and former employees of Honestbee with outstanding unpaid salaries, including work pass holders, to file their claims with TADM.

Under the Employment Act, employers who fail to pay employees' salaries can be fined up to $15,000, jailed for up to six months, or both.

Employers who do not make the required CPF contributions can be fined up to $5,000 and no less than $1,000 per offence, jailed for up to six months under the CPF Act, or both.

PROTECTION

Honestbee is currently under court protection from its creditors. It owes around US$230 million (S$325 million).

ST understands that Honestbee is looking to move its business to technology-enabled quick-service restaurants.

The firm, which moved out of its Delta House headquarters in Alexandra Road last month to a shophouse unit in Upper East Coast Road, has also leased a warehouse unit in Genting Lane for the storage of furniture and equipment from its headquarters.

Employment