MOM investigates Twelve Cupcakes over unpaid salaries and possible Employment Act breaches following sudden closure
Summary
The Ministry of Manpower (MOM), together with the Central Provident Fund Board (CPFB), has opened an investigation into Twelve Cupcakes after the bakery chain announced provisional liquidation on 29 October 2025. The abrupt closure left staff across outlets affected and raised concerns about unpaid salaries and potential breaches of the Employment Act.
The Food, Drinks and Allied Workers Union (FDAWU) said the company did not consult the union before notifying employees, despite being unionised. MOM labelled the handling of the closure as “irresponsible” and not in line with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (TAMEM).
MOM is investigating non-payment of salaries and other possible Employment Act breaches and has warned of enforcement action if needed. The Taskforce for Responsible Retrenchment and Employment Facilitation (MOM, WSG, NTUC and e2i) is providing job-matching and career coaching support. TADM will help employees file proof of debt with the liquidator, while CPFB will file to recover outstanding CPF contributions for September and October.
Key Points
- MOM and CPFB are investigating Twelve Cupcakes for unpaid salaries and potential Employment Act breaches after a sudden provisional liquidation.
- The company reportedly failed to engage its union (FDAWU) before informing employees of the closure, contrary to TAMEM guidance.
- The tripartite Taskforce (MOM, WSG, NTUC, e2i) is offering job-matching and career coaching to affected staff.
- TADM will assist employees to file a proof of debt with the liquidator for salary and employment claims.
- CPFB will file a proof of debt to recover outstanding CPF contributions for September and October.
Context and relevance
Sudden business closures that leave employees without pay are a pressing labour and compliance issue in Singapore. This case highlights how tripartite institutions — MOM, CPFB, NTUC and related agencies — step in to protect workers and enforce employment law. For HR professionals and employers, the story underscores the risks of failing to follow retrenchment advisories and the potential for enforcement action and reputational damage.
It also emphasises practical worker support mechanisms: job-matching, career coaching and dispute-resolution pathways (TADM), plus the liquidator process for claims — useful touchpoints for practitioners advising affected employees.
Why should I read this?
Because this one’s a real-world reminder: don’t close up shop and ghost your staff. If you work in HR, employment law, or run a business, the fallout here shows what can go wrong — and who’ll step in to sort it (and bite back if rules were broken). Quick, useful, and worth a skim if you want to avoid the same mess.
Author style
Punchy: this is about immediate enforcement risk and worker harm. If you advise employers or manage teams, the detail matters — it’s not just a closure story, it’s a compliance and people-risk case study.
