There had been several repetitive issues concerning employment of foreign domestic workers from employment agencies in Singapore over the years and these recurring issues remain unresolved resulting in an increase in disputes brought up to CASE or MOM. Here I am bringing out this issue as every of us who requires a helper at home would want a fair resolution to problems that we are or may be facing.
THE UPFRONT CHARGES TO BE PAID WHEN HIRING A FDW:
-Maid's outstanding loan (loan amount that she owe the agency) - This usually adds up to FDW's 5-6 months salary
-Documentation, medical checkup etc. - Approximate $200
-Insurance - Approximate $200-$300+ (depending on plan)
-Agent fee - can be as high as $900+ (depending on FDW's nationality)
As elaborated above, I was shocked when I came across the above fees at most employment agencies. I employed few FDWs before and
really felt that the agent fee and FDW's loan are ridiculous. Why? Employment agencies are charging these poor girls (FDW) who came
here to work at such high rate and on the other hand charging employers as well with such tremendous amount of agent fee. I agree that some may say that this is all stated in contract and willing parties will sign the agreement so there is nothing to argue about. But I would like to bring out some grey areas in the contract that causes disputes or inconvenience when problem arises.
GREY AREAS IN EMPLOYMENT CONTRACT
1) For replacement of helper, employment agency has the right to hold the remaining loan amount that was paid for and only return it after the FDW had been transferred to another employer. They will add on charges for lodging at $10-$20 per day. The longer the FDW takes to be transferred out, the more time and money will be wasted as a large portion of the loan amount would have been deducted for FDW's food and lodging during these period of time. It will probably pose no problem for those who could afford to pay another 5-6 months loan amount to get a new FDW before the current one gets transferred out but what about the majority who couldn't afford it and urgently require a helper at home? It will definitely be a tormenting wait for these people.
For the replacement FDW, you will have to pray hard that she is the one for your family as the process will repeat again. Depending on the number of ''free from agent fee'' replacements as agreed upon by the agencies, you may or may not be required to pay for the agent fee but do note that the rest of the charges will still apply and levy will continue to be charged till she is being transferred or work permit cancelled.
2) For FDW with outstanding loan to go on home leave with valid reasons like parent's demise, there will be a risk here. Contractual terms stated that the loan amount will be forfeited if the FDW chose not to return back for work. Is the unfair contract valid? Yes it is. I met with this issue hence called to checked with one of the MOM customer service staff to understand what they have there for FDW and employer's rights. Much to my amazement, they can't do anything as everything will follow the contract drawn out by the employment agencies. I was rather shocked. During the FDW-EOP course that was made mandatory for employers to take, it was mentioned that employers should be understanding and flexible in handling FDW who had requested to go on home leave on exceptional cases like this. However, how many employers will want to take such a risk to allow FDW to go on home leave before outstanding loan amount are paid? It will only put employers at a risk of losing their money. Alternatively, employers will have to get the FDW replaced when their FDW made such requests. Not only MOM's suggestions cant be applied, if the latter was chosen, a new employer of the FDW may face the same issue. In this way, it not only causing employer's inconvenience, it's also adding up to the number of disputes and employment agencies in return will be earning bulk from the repetitive replacements and new hire.
To summarize the above, I findthat it is unfair for employment agencies to charge FDW with such high loan amount which in return are causing hindrance to how employers could better handle FDW's problem and it's definitely unfair for the FDW to work for 5-6 months without proper pay. Also, with this amount being held by the agency, employer would not be able to repatriate any FDW who are for example, dishonest and this is definitely unfair to the next employer who is hiring the dishonest FDW. I do hope that all relevant authorities could come together to implement a policy solve this issue.
J.T
TRS Contributor