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MOM's new FDW transfer policy benefits all parties - employers, agencies, maids

  • The Straits Times (21 May 2020): "Move towards letting domestic workers switch employers freely”
  • The Straits Times (23 May 2020): "Don’t rush transfers of FDWs”

MOM's move benefits all - employers, agencies, maids

  1. We thank the Humanitarian Organisation for Migration Economics and the Association of Women for Action and Research for their respective feedback (Move towards letting domestic workers switch employers freely, May 21; and Don't rush transfers of FDWs, May 23).
  2. With worldwide travel restrictions, employers may not be able to bring in new foreign domestic workers (FDWs).
  3. The Ministry of Manpower (MOM) thus decided to allow employment agencies to take over an FDW's upkeep during her transfer period.
  4. This helps encourage employers to allow their experienced FDWs to be transferred to another household instead of sending them home. This move benefits all parties.
  5. Employers whose FDWs wish to stay on to work in Singapore after ending their employment contracts would save on repatriation costs.
  6. Employment agencies would have a bigger pool of FDWs to choose from for employment in another household.
  7. The FDW, just like the employer, retains the flexibility to end the contract at any time. The employment agency can cancel the work permit when the FDW is agreeable and ready to transfer.
  8. Otherwise, it remains responsible for the FDW during the 14-day transfer period. MOM is monitoring this to assess if a longer transfer period is needed.
  9. FDWs continue to be protected from overcharging by employment agencies under current laws. Employment agencies cannot charge an FDW if she is not placed.
  10. For FDWs who are placed, employment agencies cannot charge a placement fee of more than one month's salary per year of contract of employment.
  11. Employment agencies must refund half of the placement fee to the FDW if the contract ends within six months.
  12. The Covid-19 pandemic has brought about challenges in many areas of our lives. All of us will need to adapt to the new environment and seek new solutions.
  13. We will continue to work with and support our stakeholders in making the necessary adjustments.

Chew Ee Tien
Director
Workplace Policy and Strategy Division
Ministry of Manpower

Move towards letting domestic workers switch employers freely - The Straits Times, 21 May 2020

  1. While the new rule may incentivise some employers to give their foreign domestic workers (FDWs) the opportunity to transfer to other employers (New rule makes transfer of domestic helpers easier, May 18), the primary effect appears to be to alleviate the financial responsibility of upkeep and repatriation for employers who no longer wish to employ their FDWs.
  2. The fundamental issue of FDWs having no authority over their employment status remains.
  3. The changes proposed by the Ministry of Manpower retain the right of employers to terminate the services of the FDW, without regard for her desire to leave the employment or not, or a need to give notice of termination.
  4. It gives an employer the choice to terminate the services of the FDW with the assurance that he does not have to pay for the FDW's upkeep and repatriation, if the employment agency has cancelled the FDW's work permit for the employer.
  5. We may see more instances of employers authorising their employment agencies to cancel their FDWs' work permit and ending their employment.
  6. Even if the basis of termination is unfair, employment agencies are likely to accede to the employers' requests as they form their customer base.
  7. FDWs are also given only 14 days to secure a new employer, which may be too short a period.
  8. There may also be instances where agents compel an FDW to take up employment she does not wish to, so that the employment agency does not continue to incur upkeep costs, bearing in mind that current travel restrictions around the region make it difficult for FDWs to be repatriated.
  9. We should move towards establishing the right of FDWs to switch employers freely.
  10. Lack of labour mobility for FDWs is a fundamental factor in their staying in exploitative working conditions and not reporting abuses and violations.

    Jaya Anil Kumar
    Casework Manager
    Humanitarian Organisation for Migration Economics

Don’t rush transfers of FDWs - The Straits Times, 23 May 2020

  1. The Ministry of Manpower's (MOM) new rule easing transfer procedures for employers of foreign domestic workers (FDWs) fails to take into account the interests of the FDWs (Move towards letting domestic workers switch employers freely, by the Humanitarian Organisation for Migration Economics, May 21).
  2. It also creates perverse incentives for employment agencies to transfer FDWs to new employers as fast as possible or risk incurring the costs of their repatriation.
  3. After an employer has requested that an agency transfer his or her FDW, the agency has 14 days to find a new employer.
  4. In the meantime, the agency is responsible for all of the FDW's transition costs, including accommodation and medical insurance.
  5. Any agency trying to maximise its profits would seek to minimise the time FDWs spend in its care by rushing the transfer, despite incompatibility.
  6. It is in everyone's interest for employment transfers to be expedited - but only if all parties are given adequate time to match FDWs' skills, experience and interests to employers' needs and expectations.
  7. We recommend the Government consider expanding the two-week transfer window to between four weeks and six weeks, and ensuring two-way matching.
  8. The longer window will create additional costs for agencies, which the Government should subsidise to best meet its objective: protecting both employers' and FDWs' interests despite the pandemic's restrictions.

    A. Preethi Devi
    Project Executive
    Association of Women for Action and Research