Employers who terminate contract of domestic helpers within six months can get refund: MOM

SINGAPORE - Starting from June, employers who terminate the employment of migrant domestic workers within the first six months of hiring them will be entitled to a refund of at least half the fees charged by the employment agency.

In a statement on Thursday (March 31), the Ministry of Manpower (MOM) said that the refund is applicable for up to three helpers in their employment.

In place of a refund, employers can also request that the helper be replaced, if the option is provided by the agency.

Agencies are not required to give a refund if they did not provide a matching service, such as when a potential employer engages the agency solely to carry out the administrative work in hiring a helper, if the employer is found to have breached employment laws, or commits an offence against the helper.

Employers will also not be entitled to a refund if a helper who is hired as a caregiver has her employment terminated because her services are no longer required after the death of the person under her care or if that person is moved to alternative care.

Employers seeking a refund will have to inform the agency before terminating the employment of the helper.

MOM said this is to allow agencies to speak to both sides and understand the reasons for termination, so that they can provide better matches in the future.

Mr Kevin Teoh, divisional director of MOM's foreign manpower management division, said the refund policy is part of a series of measures to promote better matching between employers and helpers.

Mr Teoh, who is also commissioner for employment agencies, said: "This new measure was developed based on feedback from employers, employment agencies and non-governmental organisations. Employment agencies play a crucial role in facilitating a good match between the employer and the migrant domestic worker."

Ms K. Jayaprema, president of the Association of Employment Agencies Singapore (AEAS), said: "The service fee refund policy represents the shared responsibility of employment agencies and employers, and encourages both parties to spell out job requirements clearly so that candidates can be matched correctly."

She added that AEAS is confident the policy would help reduce grievances and contractual conflicts between agencies and employers.

The association has worked with the ministry to develop and issue a set of best practices to help agencies provide better matches and operate with more transparency to reduce downstream disputes, she added.

"AEAS will help guide employment agencies and employers to ensure the smooth implementation and adoption of the policy," she said.