Employment agencies must refund service fees if a migrant domestic worker’s employment ends early

We refer to Mr Tan Chee Seng’s letter, “Who regulates the maid agency?” (13 June). The Ministry of Manpower is in touch with him to follow up on his case.

Employment agencies (EAs) must offer employers of migrant domestic workers (MDW) a refund of at least 50% of the service fees charged, if the MDW’s employment ends within the first six months and other refund conditions are met. This promotes greater accountability among EAs in ensuring suitable matches between MDWs and employers. Employers should notify the EA of the reason for termination within a reasonable timeframe before requesting a refund. EAs that do not comply with the refund requirement may face enforcement action under the Employment Agencies Act.

If an MDW’s employment ends prematurely with an outstanding placement loan, employers should refer to their EA contract which specifies the circumstances for loan refunds. For contractual disputes, employers can seek mediation assistance from the Association of Employment Agencies (Singapore). If an agreement cannot be reached, employers should consider consulting the Small Claims Tribunal.

Employers are required to cover the repatriation costs upon termination of contract. This prevents a situation where MDWs are left stranded in Singapore without the means to return home.

Liang Yahui 
Director, Operations and Licensing
Foreign Manpower Management Division
Ministry of Manpower

Who regulates the maid agency, 13 June 2025, Lianhe Zaobao

In April, I hired an MDW through an agency. As the previous MDW performed poorly, she was returned to the agency, and a new MDW was arranged under a one-for-one replacement policy. I paid a $2,550 agency fee.

Unexpectedly,  within less than a month of starting work, the new MDW borrowed money from loan sharks, causing my family to be constantly harassed. In the end, I had no choice but to call the police. When I wanted to return the MDW and hire another one, the agency refused to refund the one and a half months of advance salary I had already paid, citing the police report as a reason. 

Before the MDW officially started work, I had paid three months’ salary in advance. Now, if I want to hire someone new, I would have to pay another agency fee of more than $2,000. In just one and a half months, I’ve already spent over $5,000. The agency has completely distanced itself from the incident, showing no sense of responsibility.

What is even more baffling is that after the MDW got into trouble, all the responsibility was pushed onto us employers. Not only could we not receive any reasonable compensation, but we also had to bear the cost of her return flight and even had to cancel her work permit online ourselves.

I earnestly urge the relevant government authorities to strictly investigate such irresponsible agencies. If it were not for the elderly and young children at home, I would honestly never want to hire an MDW again.

Tan Chee Seng