Written Answer by Mr Lim Swee Say, Minister for Manpower, to Parliamentary Question on recourse for an employer of an FDW where the worker has abandoned her work agreement and owes sums to her employer
Notice Paper No. 392 Of 2016 For The Sitting On 11 October 2016
Question No. 272 For Written Answer
MP: Ms Sylvia Lim
To ask 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.
- 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 who 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.