SINGAPORE — The Republic’s Manpower Ministry (MOM) on Tuesday (May 8) said that a performance bond imposed by the Indonesian Embassy here for hiring Indonesian domestic workers is “unnecessary”, given Singapore’s comprehensive regulatory framework for these workers.
Employers can choose to hire foreign domestic workers from other countries if they are uncomfortable with the terms of the bond, said the ministry, as it questioned the lack of mediation and dispute resolution process available to employers. MOM also noted that the specific conditions under which the embassy may forfeit the bond are unclear.
The embassy’s new requirement for employers to sign a S$6,000 performance bond was supposed to kick in from Feb 1, but only took effect last month.
Employers pay about S$70 for a performance bond guarantee from either of the two insurers – AIG Asia Pacific Insurance and Liberty Insurance – approved by the embassy. They also have to sign a standard employment contract issued by the embassy.
They will have pay up to the full sum of S$6,000 if they breach the conditions in the employment contract, such as by failing to pay the maid’s salary on time.
The new bond requirement is applicable to all employers looking to hire a new Indonesian helper, and they are asked by an employment agency to purchase the bond guarantee.
Existing employers of Indonesian foreign domestic workers may also be asked to purchase this bond guarantee if they are renewing their worker’s passport, or processing their documents at the embassy.
However, MOM said on Tuesday that the bond is not a requirement of the Singapore Government, and it will not take action against employers who do not purchase the bond guarantee.
“MOM has made it clear to the Indonesian Embassy and the Indonesian Ministry of Manpower that the Performance Bond requirement is unnecessary given Singapore’s comprehensive regulatory framework to protect all (foreign domestic workers),” said an MOM spokesperson.
The specific conditions under which the embassy may forfeit the bond are also not clear, said the spokesperson. She added: “There also appears to be a lack of mediation and dispute resolution process available to employers before the performance bond is forfeited.”
The ministry clarified that this performance bond is separate from the S$5,000 security bond that MOM requires of employers hiring foreign domestic workers to ensure that both the worker and employer comply with the conditions of the Work Permit.
In its list of Frequently Asked Questions on its website, MOM said employers do not need to “proactively” buy the bond, unless required by the employment agencies or the embassy.
MOM’s advice to employers who are uncomfortable with the terms of the performance bond guarantee is for them to “reconsider your hiring decision and employ an (foreign domestic workers) from other countries”, or consider seeking part-time help.
There are about 240,000 foreign domestic workers employed here, with Indonesia being one of the largest source market for helpers. The Philippine Embassy here has a similar performance bond of S$2,000 for those hiring Filipino foreign domestic workers.
MOM will be issuing advisories to the employment agencies requiring them to provide an explanation, and obtain a written acknowledgement from the affected employers to indicate that they understand the implications of purchasing the bond guarantee or signing the embassy’s contract.
Existing employers of Indonesian domestic workers will also receive an advisory, which will urge them to read and understand the terms and conditions before purchasing the bond guarantee or signing the contract.
The advisory will indicate that the Indonesian Embassy does not need to show that employers have done anything wrong to forfeit the bond, for instance. It also urges employers to consider if they can fork out S$6,000 if the bond is forfeited.
TODAY has reached out to the Indonesian Embassy for comments.
‘MORE CLARITY’ NEEDED
Non-governmental organisation Centre for Domestic Employees (CDE) said in a media statement that it “does not understand why (the) performance bond is necessary given the strong protections already in place” for all foreign domestic workers in Singapore, including the Indonesian community.
CDE chairman Yeo Guat Kwang said they “would like to urge the Indonesian Embassy to make clear the conditions for forfeiting the bond, and more importantly, spell out the process for mediation and dispute resolution before the (bond) is forfeited”.
“We hope for more clarity on how this new performance bond will benefit the foreign domestic workers, as we are worried that this cost may transfer to them unnecessarily.”
He also called on all foreign domestic workers to raise their employment issues early with CDE or MOM “so that disputes can be resolved amicably through mediation, instead of drastic actions, such as the forfeiture of a performance bond”.
Employment agencies TODAY spoke to were surprised to hear about the new requirement.
Mr Tay Khoon Beng, director of Best Home Employment Agency, said there would usually be discussions before introducing new requirements. The decision to impose a new bond came at the “very last minute”, he said.
While MOM’s advisories had helped to clarify the issues that had to be explained to employers, Mr Tay said it is still too early to tell how the bond will affect employers’ decision to hire an Indonesian maid.
Ms K Jayaprema, president of the Association of Employment Agencies (Singapore), said it could be difficult for agencies to explain to employers why they have to pay for another bond, on top of MOM’s security bond.
“For employers, any additional cost is always a concern,” she said.
An employer, who only wanted to be known as Ms Tan, 39, said the additional fee for the bond guarantee would not deter her from hiring another Indonesian helper. Her current helper’s contract ends in June.
“It's really more about the suitability of who I manage to find… it doesn't really affect me because I always pay my helper's salary on time, and I treat her well,” said the housewife.
“But it is a concern because of what may happen if a helper complains indiscriminately.”
However, another employer felt this would affect his family's decision on their Indonesian helper’s contract, which is up for renewal in July.
Media executive H. P. Chong, 53, said it would not make any sense if the conditions for forfeiting the bond were not fair to employers. He added: “I would much rather opt for a helper from another country. It will save us grief.”
https://www.todayonline.com/singapore/bond-imposed-indonesian-embassy-hiring-maids-unnecessary-mom
