Twelve Cupcakes Singapore Founders Tried For Violating Labor Regulations

Photo illustration (Tingey Injury Law / Unsplash)

JAKARTA - Twelve Cupcakes founders Daniel Ong and Jaime Teo were tried in court on Tuesday, December 29 for violating the Labor Law (UU). This case is the latest legal issue for the home bakery business.

To quote Channel News Asia, Tuesday, December 29, 45-year-old Ong received 24 charges under the Foreign Employment Act for offenses allegedly committed while he was presiding over Twelve Cupcakes. Ong is accused of allowing Twelve Cupcakes to pay wages that are less than even the salaries of the eight foreign employees who had worked at the shop between September 2012 and December 2016.

Ong arrived at court with his wife Fay Tan. His lawyer, Kalaithasan Karuppaya, told the court that he had just been briefed on the case and would follow complete instructions from his client. Ong's trial was postponed for four weeks.

The former radio DJ founded Twelve Cupcakes in 2011 with his wife Jaime Teo, whom he married in 2007. They divorced in 2016 and sold the company months later to India-based Dhunseri Group, which expanded the brand to 35 stores in Singapore.

Teo was charged with similar charges after arriving more than an hour after Ong's case, with lawyer Diana Ngiam of Quahe Woo & Palmer. Ngiam said he was grateful that prosecutors would amend the charges to reflect Teo's negligence on the matter, as a rebuttal to the willful offense.

"Unfortunately he left this in someone else's hands," said Ngiam. "Nonetheless, we are also grateful that the prosecutor will consider fines." Ngaim said that Teo also intended to plead guilt.

Twelve Cupcakes, under new ownership, pleaded guilty earlier this month to underpaying employees' salaries. They paid a salary of 114,000 Singapore dollars for two years between December 2016 and November 2018. As a countermeasure, the attorneys for the new Twelve Cupcakes owners say they are continuing the practice of the previous management.

Prosecutors are demanding a fine of S $ 127,000 for Twelve Cupcakes for 15 counts, with another 14 charges still under consideration. Sentencing for the company has been postponed until January.

If found guilty of violating work permit requirements, Ong and Teo could be jailed for up to one year, a fine of up to Singapore dollars 10,000 or both per count. The two will return to court in January 2021.