WICA Reporting: Will It Harm My Singapore F&B or Retail Business?

As a business owner in Singapore, whether you operate a bustling cafe, a vibrant restaurant, a busy retail store, or a dynamic boutique, you strive to create a safe working environment for your team. Yet, in the fast-paced world of F&B and retail, accidents can happen. When an employee suffers a work-related injury, one of the immediate thoughts that might cross your mind is: "Will reporting this Work Injury Compensation Act (WICA) claim negatively affect my business?"

It's a valid concern. You might worry about increased insurance premiums, potential scrutiny from the Ministry of Manpower (MOM), or even reputational damage. However, understanding the WICA framework and the true consequences of not reporting an injury is crucial. The short answer is: While there can be implications, failing to report a WICA claim is far more detrimental to your business in the long run.

The Law is Clear: Report It!

Under the Work Injury Compensation Act (WICA), it is a legal obligation for employers to report all work-related injuries, diseases, or deaths to MOM if:

• The employee is given medical leave (MC) for at least 3 consecutive days (including weekends and public holidays).
• The employee is given light duties for at least 3 consecutive days.
• The employee is hospitalised for at least 24 hours.
• It is a confirmed occupational disease.
• The incident results in death.

You must report these incidents to MOM via the WICA eService within 10 days of the accident or diagnosis. Fatal accidents must be reported within 24 hours.

Important Clarification: WICA Applies Universally It's crucial to understand that WICA applies to almost all employees across ALL sectors in Singapore. This includes employees in:

• F&B: Kitchen crew, service staff, baristas, delivery riders.
• Retail: Sales associates, stockroom staff, cashiers, visual merchandisers.
• And many other industries like manufacturing, construction, logistics, and offices.

If you are an employer in Singapore and hire employees (whether local or foreign, full-time, part-time, or temporary), they are generally covered under WICA.

The Real Harm Comes from Non-Reporting

While reporting an incident might feel daunting, the consequences of failing to report are far more severe and can lead to significant penalties for your business:

1. Heavy Fines and Prosecution: MOM takes non-compliance seriously. If you fail to report a compensable work injury, you could face:
   • Fines of up to $10,000 for a first offence.
   • Fines of up to $20,000 or imprisonment for repeat offenders.
   • Criminal prosecution, which can severely damage your business's standing.
2. Loss of Insurance Coverage: If you don't report the injury to MOM, your WICA insurer might dispute or even deny coverage for the claim. This means you would be personally responsible for all medical expenses, medical leave wages, and any lump-sum compensation payouts, which can easily run into tens of thousands of dollars for a serious injury.
3. Damaged Reputation and Employee Trust: News of a suppressed injury can quickly spread among your staff and within the industry. This can lead to:
   • Low employee morale: Staff will feel unprotected and undervalued.
   • Difficulty in hiring: A reputation for neglecting worker safety can make it harder to attract and retain talent in a competitive market.
   • Negative public perception: In an age of social media, an incident poorly handled can quickly turn into a public relations nightmare, harming your brand.
4. Drawn-Out Legal Battles: Without proper WICA reporting, an injured employee might resort to filing a civil lawsuit against your business, which is often more costly, time-consuming, and carries higher financial risks than a WICA claim.

What Happens When You Report (The Process & Its Impact):

When you report a work injury under WICA, you initiate a structured process designed to ensure fair compensation for the employee and protection for your business:

1. The Employee Receives Care: Your employee gets timely medical attention and financial support for their medical leave and expenses, allowing them to focus on recovery.
2. Insurance Kicks In: Your WICA insurance provider steps in to handle the bulk of the compensation payments, shielding your business from direct financial burden. They will manage the claim process, liaise with MOM, and ensure compliance.
3. MOM Oversight: MOM oversees the process to ensure fairness and compliance. This oversight helps validate the claim and provides a formal resolution.
4. Potential Impact on Premiums: It's true that a history of claims can influence future insurance premiums. However, this is part of the risk-assessment process. A single claim is unlikely to drastically change your rates, especially if your overall safety record is good. Furthermore, the cost increase from higher premiums is almost always negligible compared to the financial devastation of an uninsured claim or MOM penalties.

Common Workplace Injuries in F&B and Retail:

• F&B: Cuts and lacerations (from knives), burns and scalds (from hot equipment), slips/trips/falls (on wet or greasy floors), muscle strains (from lifting heavy items).
• Retail: Slips/trips/falls (on sales floors, in stockrooms), cuts (from box cutters, broken displays), strains (from lifting heavy boxes, repetitive motions at cashiers), back injuries (from prolonged standing or improper lifting).

Focus on Prevention, Not Suppression

The best way to mitigate the "effect" of WICA claims is not by avoiding reporting, but by preventing injuries in the first place. Implement robust safety protocols, provide adequate training for your staff, maintain equipment, and ensure a clean, safe environment across all areas of your F&B or retail premises.

If an accident does occur despite your best efforts, prompt and compliant reporting demonstrates your responsibility as an employer and allows your WICA insurance to do its job.

Don't let unfounded fears about reporting compromise your business. While no business owner wants an injury to occur, handling it correctly under WICA is essential for legal compliance, financial security, and maintaining trust with your most valuable asset – your people.

Let SMEsure handle the risk management for your business. This frees you up to fully focus on your business and dedicate more time to the people who matter most. For more information on how SMEsure can support your business, visit us here.