BOSSES who receive Jobs Credit payments are expected to do their utmost to save jobs and to retrench staff only as a last resort.
But they are not abusing the wage subsidy if they must lay off workers as a result of business restructuring, Minister in the Prime Minister's Office Lim Hwee Hua said on Sunday.
She was responding to Bishan neighbourhood committee vice-chairman William Swee, who asked at a residents' dialogue whether employers had any legal or moral obligations under the scheme.
The $4.5 billion scheme aims to help employers hold on to workers during the global economic downturn by defraying their wage bills. For every resident worker on their Central Provident Fund payrolls, bosses get 12 per cent on the first $2,500 of the employee's monthly wage.
Mr Swee, 69, a freelance consultant, claimed that an organisation which received Jobs Credit had laid off five employees, but gave increments to top management and later took in new recruits.
He did not name the organisation.
- The Straits Times
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