MOM investigates sudden closure of Twelve Cupcakes amid worker pay dispute
Twelve Cupcakes' abrupt closure on 29 October left 80 staff unemployed and unpaid, prompting Ministry of Manpower investigations and union intervention. Workers gathered at MOM's Bendemeer centre demanding owed salaries and CPF contributions.
- Twelve Cupcakes has entered provisional liquidation, abruptly terminating about 80 employees without notice.
- Affected workers are demanding unpaid salaries and CPF contributions, with MOM and unions launching investigations.
- The liquidator is expected to hold a creditors’ meeting within four weeks to provide updates.
About 15 former employees of cupcake chain Twelve Cupcakes gathered at the Ministry of Manpower (MOM) Services Centre on Bendemeer Road on 31 October, seeking answers over unpaid salaries and sudden job termination.
This follows the company’s announcement a day earlier that it had ceased operations and entered provisional liquidation.
Workers told The Business Times that they were only informed of the closure via WhatsApp at 8pm on 29 October. A termination letter was attached to the message.
There was no prior notice or communication from the company, leaving many workers scrambling to secure housing, repay debts, and cover basic expenses.
An outlet manager who spoke outside the MOM building said, “There was no notice period at all. With so many bills to pay, starting with our rent – what are we going to do now?”
Employees have stated that they are still owed salaries for October. Some also noted that Central Provident Fund (CPF) contributions for the same month have not been credited.
The affected group, including S Pass holders, is now facing pressing deadlines. Rent is due by 31 October or 1 November for many, and foreign workers are under pressure to secure new jobs or return home within 30 days.
MOM staff held closed-door meetings with representatives of the affected workers on 31 October. According to the workers, they were told that local unions would handle compensation-related issues.
The Food, Drinks and Allied Workers Union (FDAWU) issued a strong statement on 30 October criticising the company’s sudden closure. It described the move as “unacceptable and unfair,” and objected to the lack of consultation or notice.
FDAWU said it would support workers with salary claims, job placement services, and referrals to relevant networks such as the Employment and Employability Institute under the National Trades Union Congress (NTUC).
MOM has launched a formal investigation into the case, citing possible breaches related to non-payment of wages. The CPF Board, in a joint statement with MOM on 31 October, said it will file a claim with the liquidator to recover outstanding CPF contributions for September and October.
Authorities criticised Twelve Cupcakes’ conduct, calling the closure “irresponsible” and “not aligned with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.”
They stated that while retrenchments may be necessary at times, employers have a duty to treat staff “in a responsible and sensitive manner”.
The case is being handled by the Taskforce for Responsible Retrenchment and Employment Facilitation, which includes MOM, Workforce Singapore, NTUC and its Employment and Employability Institute.
Support for affected workers will include job-matching services and career guidance. Employees requiring help with claims will be assisted by the Tripartite Alliance for Dispute Management.
Meanwhile, a fundraiser page has been launched on Give.asia, aiming to raise S$100,000 to support workers’ immediate needs such as rent, food and utilities. Mothership reported that this initiative was started by a group of former staff.
Liquidator AAG Corporate Advisory has responded to media queries stating that it is still gathering necessary information. As legally required, a creditors’ meeting will be held within the next four weeks.
The company’s sudden collapse adds to a history of labour violations. Twelve Cupcakes was founded in 2011 by entertainment personality Jaime Teo and her then-husband, former radio DJ Daniel Ong.
Both were fined S$65,000 in 2021 for underpaying foreign staff between 2013 and 2016. After selling the business to India’s Dhunseri Group in December 2016, the new owners were also fined S$119,500 in January 2021 for similar offences.
Dhunseri Group has not responded to recent queries from The Straits Times.
At present, affected employees await further details from the liquidator and support from the FDAWU. Many remain uncertain about their employment future and financial security.
