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What is the Indonesian Embassy’s new requirement? When will it take effect?

The Indonesian Embassy in Singapore has decided to impose a $6,000 performance bond requirement as a new condition for employing MDWs from Indonesia. The Indonesian Embassy claims that this serves as a guarantee for the performance of every clause in the Indonesian Embassy’s Standard Employment Contract for Domestic Helpers.

MOM has made it clear to the Indonesian Embassy and the Indonesian Ministry of Manpower that the performance bond requirement is unnecessary given Singapore’s comprehensive regulatory framework to protect all MDWs. We have also asked for greater clarity on the specific conditions under which the embassy may forfeit the performance bond, as well as the process for mediation and dispute resolution for employers before the bond is forfeited.

According to the Indonesian Embassy’s circular sent to employment agencies (EAs), the performance bond requirement was supposed to take effect from February 2018. Employers should consult their EA if in doubt.