‘The answers are all uncertain’: True Singapore ex-employees left hanging over salaries, CPF contributions for September
Former employees of True Singapore, a fitness chain operating True Fitness, TFX, and Yoga Edition brands, are facing uncertainty regarding their September salaries and Central Provident Fund (CPF) contributions. The company's subsidiaries, True Fitness and True Yoga, are undergoing winding up proceedings, with provisional liquidators appointed. Approximately 100 ex-employees attended meetings with liquidator RSM SG Corporate Advisory on September 11, but no company representatives were present to address their concerns. The ex-workers have not received their September payments and are not entitled to severance packages, according to contract documents. This situation leaves many, including a Malaysian work permit holder, concerned about their immediate financial future and ability to remain in Singapore.
The abrupt closure of True Singapore and the subsequent uncertainty over September salaries and CPF contributions for its former employees highlight significant risks within the startup and service sector in Singapore. The absence of company representatives at meetings with liquidators on September 11 left about 100 ex-workers without clear answers, underscoring a lack of transparency and support during a critical transition. This situation is particularly challenging for contract staff and foreign workers like Adrian Pratab, a Malaysian national, whose ability to remain in Singapore is tied to finding new employment quickly. The case points to the potential for employees to be left vulnerable when a company undergoes sudden liquidation, especially concerning the hierarchy of payments where winding-up costs take precedence over salaries. The Ministry of Manpower and NTUC's involvement will be crucial in determining any recourse for the affected individuals, as the current contracts do not provide for severance. This event could prompt a closer look at employee protection mechanisms in Singapore's startup ecosystem.
