SINGAPORE – Sea Group’s staff based here will soon have their salaries credited into accounts with MariBank, the digital bank the tech giant owns.
Employees were informed earlier this month of the move, which has prompted questions over whether it is legal for companies to make such mandates.
“Starting from the October payroll, MariBank will be the mandatory salary crediting bank for all Singapore-based employees of Sea,” according to an internal memo to employees seen by The Straits Times.
Staff who bank with MariBank could help the bank improve the product and build trust with the public, the email said.
Staff who update their salary crediting details by Sept 17 will receive a $100 Shopee voucher. Those who already have their salaries credited to MariBank are also eligible for the voucher.
Employees also enjoy preferential rates and promotions on eligible MariBank personal loans. The staff memo added that the bank expects to introduce more products, features and employee benefits over time.
Sea operates three core businesses through its digital entertainment arm Garena, e-commerce platform Shopee, and digital payments and financial services arm Monee, previously known as SeaMoney.
The memo left some employees with the impression that they were required to open a MariBank account, and that there could be consequences if they did not.
However, ST understands that employees who do not wish to use MariBank can retain their existing arrangement.
Despite the memo saying crediting MariBank would be “mandatory”, additional details linked in the email announcement acknowledged that some staff may have “personal circumstances that require them to continue using another salary crediting account”.
“In such cases, please reach out to your human resources business partner for a discussion,” the company said.
Khelvin Xu, director at law firm Covenant Chambers, said that employers in Singapore cannot force employees to receive their salary through a specific bank unless it is provided for in the employment contract.
“Since the employer cannot force an employee to use a particular bank account, what is there to discuss if the employee does not wish to switch?”
Without such a contractual right, an employer is unlikely to be able to force an employee to use a specific bank if the employee refuses, he said.
Even if the employer proposes an amendment to the terms of the employment, the employee can disagree with it. It may be necessary for the employer to incentivise employees to agree to this amendment, he added.
Xu noted that it is not an offence for employers to request that employees receive salaries only through accounts in a specific bank.
Employees could politely decline, on the basis that they are under no obligation to comply, said Xu.
If the employer maintains its position, employees may ultimately be required to decide if it’s worth continuing to stand their ground at the risk of possible adverse consequences, including a dissatisfied employer making their working circumstances difficult.
Or, they may decide to comply, particularly if the perceived inconvenience is outweighed by the other benefits of remaining with the employer – especially if the employees are not currently prepared to seek alternative employment.
It is common for bank employees here to be required to receive their salaries through accounts with the bank they work for, based on checks with several local and foreign banks operating here.
Employees from two banks told ST that they had no option to decline.
Bank employees whom ST spoke to said that they do not consider it problematic to open a salary account with their employer bank, as they can transfer their funds to another bank as they please.
Some banks also offer perks for employees such as preferential rates and fee waivers.
At Citi, perks include fee waivers on eligible credit cards and preferential rates on foreign exchange transactions and fixed deposits.
OCBC said crediting salaries into OCBC accounts helps streamline payroll processing, minimises the risk of interbank processing delays, and ensures that staff receive their salaries in a timely manner.
Staff who choose eligible OCBC accounts for salary crediting enjoy preferential interest rates, an OCBC spokesperson said.
Also citing operational efficiency, UOB said it requires employees to maintain an account with it for salary crediting. Employee banking benefits include preferential rates and fee waivers for certain accounts, credit cards and other banking services.
The same goes for Standard Chartered, which makes salary crediting “simple and efficient” while enabling employees to access staff banking privileges across products and services.
However, not all banks mandate where staff get their salaries credited.
Grab- and Singtel-backed digital bank GXS said employees can choose to credit their salary in their bank account of choice.
ST understands that at Singapore’s largest bank DBS does not require its staff to credit their salaries to accounts with the bank, although most do so.
Employees ST spoke to shared that DBS provides benefits such as preferential interest rates for salary crediting accounts with the bank.
Xu stressed that employers cannot legally delay, withhold nor restrict payment of the employee’s salary if they refuse to open an account with the designated bank, adding that failing to pay salary in accordance with the Employment Act is a criminal offence.
The Ministry of Manpower (MOM) said that under the Employment Act, employers are legally responsible for paying salaries in full and on time.
Employers should engage their employees on the options for modes of payment, a MOM spokesperson said.
If there is an alleged violation of the Employment Act, affected employees may seek assistance at https://www.mom.gov.sg/eservices/services/report-an-employment-act-violation, the spokesperson said.
The Monetary Authority of Singapore (MAS) said it expects banks to comply with all applicable employment laws and regulations.
“They should engage with their employees to explain and address any concerns that employees may have with their employment terms,” a MAS spokesperson said.
