Twelve Cupcakes Co-Founder Jaime Teo Underpaid Workers $98,000, Fined $65,000
One of the founders of Twelve Cupcakes has been fined for underpaying employees for several years.
Jaime Teo, the ex-wife of co-founder Daniel Ong, was fined $65,000 on Tuesday (9 Mar).
She was said to be one of the primary decision makers at Twelve Cupcakes, with control over expenses and salaries.
The court heard that Ms Teo did not prevent the company from underpaying the staff, nor did she ensure that they received their fixed monthly salaries.
Fined $65,000 for not paying over $90,000 in salaries
For underpaying 7 foreign workers about $98,000 over 3 years, the court fined Ms Teo $65,000.
This is lower than the $80,000 that a Ministry of Manpower (MOM) prosecutor sought.
According to Channel NewsAsia (CNA), no restitution has been made for the owed payments.
Lawyer asked for $20,000 fine
Ms Teo’s lawyer Sunil Sudheesan had asked for a $20,000 fine instead, saying that she was involved in marketing and product development.
Although Mr Sudheesan pleaded that Ms Teo delegated the HR aspects to a third party, District Judge Adam Nakhoda said she should have paid more attention to what was going on.
She was not involved in discussions about employment details, but agreed on salary ranges with the third-party agency.
Ms Teo also has no intention of being a director in any company, Mr Sudheesan said.
But employees not complaining about being paid less doesn’t mean companies are absolved, District Judge Nakhoda noted.
Unlike Twelve Cupcakes, which made full restitution to staff under its new owners, Ms Teo hasn’t done the same.
Jaime Teo pleaded guilty in Feb
Last month, Ms Teo had pleaded guilty to her offence, which came to light after a tip-off over the new owners’ underpayment practices.
Twelve Cupcakes Co-Founder Pleads Guilty To Underpaying Staff, $98,000 In Salaries Still Owed
Ms Teo and Mr Ong had sold Twelve Cupcakes to Dhunseri Group in 2016.
Under the new owners, the practice of underpaying staff continued.
The employees were owed between $2,000 and $2,600, but received between $350 and $1,400 less for the duration of Sep 2013 and Nov 2016.
Important to pay stated salaries
The court case for Mr Ong is still pending and his case will be heard on a later date.
Given Ms Teo had intended to plead guilty from the start, it would appear that she realises her role in the underpayment.
Such cases may go unnoticed by those who are okay with being underpaid, but companies must always ensure that they’re paying out stated salaries, or face the long arm of the law.
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Featured image adapted from Twelve Cupcakes and Facebook.
