Union updates former employees about challenges in retrieving salaries during the liquidation of Flash Coffee.
Former employees of Flash Coffee, the coffee start-up with operations in Singapore, will face a delay in receiving their owed salaries due to the ongoing liquidation process. The company’s local arm, which recently shut down its 11 outlets across the island, is undergoing provisional liquidation, and the process of settling its financial obligations will take some time.
Julie Cheong, the president of the Food, Drinks, and Allied Workers Union (FDAWU), provided this update on Nov 14, 2024. She also mentioned that the FDAWU is currently assisting affected employees in filing salary claims with the Tripartite Alliance for Dispute Management. The union is also guiding them on how to file proof of debt, a legal process through which creditors can substantiate the debts owed to them.
Under Singaporean law, employees of insolvent companies are prioritized for salary payments, followed by retrenchment benefits and ex-gratia payments. However, the total amount payable is capped at $13,000 or up to five months’ salary, whichever is lower.
Employees who spoke with the union reported being owed salaries, Central Provident Fund (CPF) contributions, and unused leave encashment. Despite some staff members initially staging a strike over late salary payouts, the union clarified that no coordinated action was planned following the company’s liquidation announcement.
On Oct 12, Flash Coffee informed its staff that the company had been placed under provisional liquidation, and all employees’ services were terminated. The company’s sudden closure became widely known after a video showing the shuttered Jurong Point outlet circulated on social media.
A Flash Coffee spokesperson stated that the company decided to cease its Singapore operations to focus on consolidating efforts in promising markets. Flash Coffee, which operates over 200 outlets globally, is now working towards recovery and restructuring through the liquidation process.
The union has been assisting former employees with job matching, and many have already attended interviews with companies that reached out through the union’s network. Additionally, training opportunities under the National Trades Union Congress’ Union Training Assistance Programme have been offered to help workers transition into new roles.
