The Ministry of Manpower (MOM) is investigating an allegedly fraudulent work injury claim flagged by Ms Jane Lee, the late owner of Sumo Salad, said Minister of State for Manpower Dinesh Vasu Dash as he extended his condolences to her family.
In response to The Straits Times’ questions during a media doorstop at the Tripartite Connect event on July 24, he said MOM “has been in communication with Ms Lee prior to her passing, and we will work with the insurer on the necessary claims”.
There is also a police investigation, and more details will be revealed once the probe is completed, he said.
Ms Lee died a day after posting two Facebook messages on July 18, alleging that a former staff member had faked a fall just two days before the end of her contract, in an attempt to claim workplace injury compensation from the company.
The mother of two alleged that it was a premeditated scheme involving the employee’s husband and possibly a law firm.
She also urged MOM and the police to investigate the validity of the claim thoroughly.
The incident has sparked widespread public sympathy and prompted some small and medium-sized (SME) enterprise owners to speak out about the immense pressure they face when handling workplace injury cases – whether they are staged or genuine.
Mr Hasan Abdul Rahman, the second-generation owner of halal food manufacturer Pondok Abang, said most workplace injury cases he has seen could have been avoided if his staff had followed standard operating procedures.
While he has not encountered outright fraud, he admitted to having suspicions when injuries occur near the end of an employee’s stint.
But he told ST that most bosses would not pursue further to avoid prolonged disputes and regulatory scrutiny. Instead, their instinct is to get immediate medical attention for the staff, settle the claims with insurers and return to daily operations quickly.
But when SME owners – especially those with less financial muscle – are compelled to sign letters of guarantee in the hospital, they can experience “a lot of emotional and financial distress”, Mr Hasan said.
The unsubsidised bills for foreign hires can be huge, and employers are often expected to pay up front, on top of covering their salaries, lodging and meals. “When this drags on for months, it can be very difficult for the employer,” he added.
Other SME owners said fraudulent claims are rare. Mr Charles Ho, the owner of On Cheong Jewellery, said bosses who have worked with their employees for a long time usually have a good understanding of their characters.
He recalled a staff member who had tripped and fallen at work, and he decided to continue paying her salary even after her hospitalisation leave was exhausted as he trusted her integrity.
In a statement on July 21, MOM said employers can approach the ministry for help if they have concerns over fraudulent claims by their employees.
MOM said the worker who filed the claim against Sumo Salad was covered under the Work Injury Compensation Act (Wica).
Wica allows employees to claim for injuries and occupational diseases that happen at work or as a result of work.
But those who abuse the system have previously been taken to task. In 2021, two foreign employees were sentenced to jail for making fraudulent claims under Wica and providing false information to an MOM investigation officer.
Sharon Salim and Cheong Poh Kwan for The Straits Times
MOM probing Jane Lee work injury claim: MOS Dinesh
