In Singapore, migrant domestic workers (‘MDW’) are protected under the Employment of Foreign Manpower Act 1990 and the Employment Agencies Act 1958 during the recruitment process.
Under the Employment of Foreign Manpower Act 1990, it is illegal to deduct salary from an MDW in exchange for employment. Under the same act, it is assumed that if an MDW’s salary is deducted, the deduction is illegal. This is even when both the MDW and employer agree to deduct the salary.
There are two situations when an employment agency can charge MDWs:
- The first is when the MDW is applying to work in Singapore; and
- The second is the money the MDW has to pay when she is outside Singapore.
Limits to fee charging when applying to work in Singapore
Under the Employment Agency Rules (Rule 12), an employment agency can charge a ‘placement fee’ of maximum one month’s salary for each year that the MDW is working, for a maximum of 2 years.
This means that if your contract is two years, the maximum your employment agency can charge you is two month’s salary – one for each year of your contract.
If your contract is less than two years (for example, your contract is only for one year), your employment agency can only charge you one month’s salary as placement fees.
If your employment agency charges you a placement fee, they must, under the law, give you a written receipt that states how the fee is calculated and charged.
The placement fee is only relevant to costs in Singapore. For any fees the employment agency paid while you are outside of Singapore, a different set of rules apply (See below).
Fees from outside Singapore
Under Singapore law, there is no further information on what fees can be charged to an MDW outside of Singapore. However, it is important to remember that employment agencies must prove that the overseas costs are necessary for the employment.
Refunds from the employment agency
Under the Employment Agency Rules (Rule 13(1)), if the employer breaks the contract with the MDW within 6 months from the start of the work, the agency must refund at least 50% of the agency fees to both the employer and the MDW.
The employment agency must provide the refund within 14 days after:
- the employer’s written request for the refund, or
- the MDW’s work pass is cancelled, whichever is later.
There are only two occasions when the employment agency does not have to refund:
- If the employment contract has expired;
- If the MDW is the person who wants to break the contract
Helpful Tips
- Call the police (999) if you are in danger – this might be because the employment agency or their staff are scaring your or trying to force you to pay them money.
- If you think you have been overcharged, you may consider submitting an ‘unjust enrichment’ case at court. To do this, it is advised that you seek legal help from a legal advisor or NGO first so that they can check how strong your case is.
- Consider collective action against the employment agency. Recent cases in Singapore have shown that it is possible for several MDWs to take action against an employment agency. You can try to find other MDWs who have used the same agency and you can try to bring a civil case against the agency. Again, it is important to first get legal advice from a lawyer or NGO first before bringing a claim.
- Do not give into pressure by the employment agency to pay any fees if you suspect that they might be overcharging you. If you are not sure, you can contact any of the NGOs listed below for help or a legal advisor.
