Xuyi Building Engineering Co v Li Aidong: Employee Claims for Unpaid Wages and Overtime

In a case before the High Court of Singapore, Xuyi Building Engineering Co. appealed a decision regarding claims by employees Li Aidong and Xu Yuecheng for unpaid salary, overtime, and unauthorized deductions. Xuyi counterclaimed for payment in lieu of notice. The court, presided over by Kan Ting Chiu J, found that the employees' payment system was time-based, entitling them to additional payments, but also ruled that Xuyi's failure to comply with the Employment Act allowed the employees to terminate their employment without notice. The court ordered payments to be computed at a rate of $2.50 per hour, and set aside the order for payment in lieu of notice.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal dismissed in part and allowed in part.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Xuyi Building Engineering Co. faced claims from employees Li Aidong and Xu Yuecheng for unpaid wages and overtime. The court addressed whether the payment system was time-based or task-based.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Xuyi Building Engineering CoAppellant, RespondentCorporationAppeal dismissed in part and allowed in partPartial
Li AidongRespondent, AppellantIndividualAppeal dismissed in part and allowed in partPartial
Xu YuechengRespondentIndividualAppeal dismissed in part and allowed in partPartial

3. Judges

Judge NameTitleDelivered Judgment
Kan Ting ChiuJudgeYes

4. Counsels

Counsel NameOrganization
Alvin ChiaHilborne & Co
Steven LeeHilborne & Co
N. SrinivasanHoh Law Corporation
K SubramanianHoh Law Corporation

4. Facts

  1. Li Aidong and Xu Yuecheng claimed against Xuyi for unpaid salary, overtime pay, and unauthorized deductions.
  2. Xuyi counter-claimed that the employees terminated their employment without adequate notice.
  3. The employees were recruited by the China Agent to work for Xuyi in Singapore.
  4. Xuyi was to pay the employees under a 'Job Value System' (JVS).
  5. The employees left their jobs without giving sufficient notice of termination.
  6. The Assistant Commissioner of Labour (AC) held that the salary system was time-based.
  7. The AC found that Xuyi was entitled to payment in lieu of notice.

5. Formal Citations

  1. Xuyi Building Engineering Co v Li Aidong and another and another appeal, District Court Appeal Nos 49 of 2009 and 4 of 2010, [2010] SGHC 236

6. Timeline

DateEvent
China Agent signed agreement with Xuyi to recruit Chinese workers.
Judgment delivered by the High Court.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that Xuyi's failure to comply with the Employment Act allowed the employees to terminate their employment without notice.
    • Category: Substantive
    • Sub-Issues:
      • Failure to pay salary
      • Unauthorised deductions of salary
  2. Entitlement to Overtime Pay
    • Outcome: The court determined that the employees were paid on a time-based system and were entitled to additional payments for overtime work and work on rest days.
    • Category: Substantive
    • Sub-Issues:
      • Time-based vs task-based payment system
  3. Payment in Lieu of Notice
    • Outcome: The court set aside the order of payment in lieu of notice of termination by the two employees.
    • Category: Substantive

8. Remedies Sought

  1. Arrears of Salary
  2. Overtime Pay
  3. Additional Payments for Work on Public Holidays and Rest Days
  4. Payment in Lieu of Notice

9. Cause of Actions

  • Breach of Contract
  • Non-payment of Salary
  • Unauthorised Deduction of Salary

10. Practice Areas

  • Employment Disputes
  • Wage and Hour Law

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
N/AN/ANoN/AN/AN/A

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Employment Act (Cap 91, 2009 Rev Ed)Singapore
s 10 of the Employment ActSingapore
s 11 of the Employment ActSingapore
s 37 of the Employment ActSingapore
s 38 of the Employment ActSingapore
s 39 of the Employment ActSingapore
s 88(4) of the Employment ActSingapore
s 11(1) of the Employment ActSingapore
s 11(2) of the Employment ActSingapore
s 2(1) of the Employment ActSingapore

15. Key Terms and Keywords

15.1 Key Terms

  • Job Value System
  • Time-based system
  • Task-based system
  • Payment in lieu of notice
  • Overtime pay
  • Basic rate of pay
  • Employment Act
  • Wilful breach

15.2 Keywords

  • Employment Act
  • Overtime
  • Salary
  • Singapore
  • Construction
  • Breach of Contract

17. Areas of Law

Area NameRelevance Score
Employment Law90
Wage Law70
Contract Law60

16. Subjects

  • Employment
  • Labour Law
  • Wage Disputes