Twelve Cupcakes founders Daniel Ong, Jaime Teo charged with underpaying foreign workers

SINGAPORE — The founders of homegrown bakery chain Twelve Cupcakes, former radio deejay Daniel Ong and his ex-wife actress Jaime Teo, were on Tuesday (Dec 29) charged with underpaying eight of their foreign employees from 2012 to 2016.

Ong, 45, and Teo, 43, each received 24 counts of contravening rules under the Employment of Foreign Manpower Act, including charges of failing to pay their foreign employees on time.

The latest development in the ongoing legal troubles faced by the bakery chain and its owners now brings into the picture the two founders, who had not faced any prosecution until now.

The couple, who divorced in 2016 after nine years of marriage, set up Twelve Cupcakes in 2011 before selling it in 2017 to Indian tea company Dhunseri Group for S$2.5 million.

Three weeks ago, the bakery chain, under its new owners, pleaded guilty to underpaying eight of its foreign employees a total of S$114,150 from 2017 to 2019. 

Ong and Teo had allegedly paid their employees less than their monthly wages ranging from S$2,000 to S$2,600. 

Court documents did not specify how much they were underpaid.

Ong appeared in court on Tuesday with his wife Fay Tan. His lawyer, Kalaithasan Karuppaya from Regent Law, said that he had just been briefed on the case and was granted a four-week adjournment.

Teo’s lawyer told the court that she intends to plead guilty to amended charges that would reflect her negligence over the matter.

“Unfortunately, she left this in the hands of others,” lawyer Diana Ngiam of Quahe Woo and Palmer said.

Dhunseri Group’s lawyer earlier told the court that the group underpaid its foreign employees because it was continuing a practice put in place by the founders. 

The group had, in some instances, paid its employees the correct amounts to their bank accounts but asked them to return some of their pay.

After the bakery pleaded guilty on Dec 10, Mr Ong told TODAY in an emailed response to queries: “Hiring and contracts of foreign labour were handled by a third-party external agent. We were only notified when the investigations started in 2019. My lawyers are currently handling the matter.”

This is not the first time the firm and its founders have been in the spotlight over employment and salary matters.

In 2013, Ong rejected allegations published on now-defunct website The Real Singapore that the firm exploited foreign workers by making them work longer hours than resident employees for low pay and with no overtime pay.

Both he and Teo will return to court on Jan 26.

For each charge of contravening foreign work pass rules, they could be fined up to S$5,000 or S$10,000 or jailed up to six months or a year, or both.