Recourse for Employers of Errant Foreign Domestic Workers

5 Ms Sylvia Lim asked the Minister for Manpower what recourse does an employer of a foreign domestic worker have where the worker has abandoned her work agreement and owes sums to her employer.

Mr Lim Swee Say: Personal loans are usually extended by an employer to the foreign domestic worker (FDW) to help the FDW pay placement fees to the local employment agency (EA). Our EA Licence Conditions require EAs to state their refund policies in their contracts with employers, including refunds for loans given by employers for the placement fee. Therefore, if the FDW terminates her employment prematurely, employers should check the contract they signed with their EA. The contract will lay out whether and under what circumstances they can get a full or partial refund.

There are also EAs which do not require employers to extend personal loans to the FDWs; so, the issue of a refund does not even arise. Employers who prefer such an arrangement can approach these EAs.