6 March 2017
Budget Cut at Committee of Supply 2017
1 August 2017
Paid Annual Home Leave for Foreign Domestic Workers
11 September 2017
Employment Agencies Industry Averages for Foreign Domestic Worker Retention and Transfer Rates from 2015 to 2017
2 October 2017
Breakdown of Annual Foreign Worker Levies Collected
18 May 2018
Medical Insurance Coverage when Foreign Domestic Worker is Put on Special Pass
19 November 2018
Cases of Foreign Domestic Workers Borrowing and Defaulting on Loans from Licensed and Unlicensed Moneylenders
3 September 2019
Foreign Domestic Workers Borrowing from Licensed Moneylenders
5 October 2020
Considerations for Punitive Actions Against Employer of Parti Liyani & Updates on Matters Arising from High Court Judgment in Former Foreign Domestic Worker Parti Liyani's Case
15 October 2020
Review of Fines for Illegal Deployment of Foreign Domestic Workers
2 March 2021
Requirement for Employers of Foreign Domestic Workers to Obtain Documented Consent from FWDs for Deployment Outside Their Contract
2 March 2022
Mandatory Rest Day for Migrant Domestic Worker and Ensuring a 24-Hour period of Uninterrupted Rest
11 March 2022
Statistics on Enforcement Actions against Employers for Compelling Work Permit Holders to Work on Rest Days without Prior Written Agreement between 2016 and 2020
4 April 2022
Penalties for Employers Not Providing Migrant Domestic Workers with Day Off Once a Month at End 2022
5 April 2022
Written Consent for Work on Rest Day to be Given for Low-wage Workers
Louis presented his budget cut on Giro Payment for Domestic Workers as follow:
Louis: Salary disputes between domestic workers and their employers often arise because there is no record to prove whether payments were made correctly.
While local employment agencies are only allowed to collect a maximum of two months' salary as placement fees, domestic workers often have salary deductions that exceed this limit. These excessive deductions are often characterised as loan repayments for agency fees incurred in the worker's home country. But the lack of any records make it difficult to determine if these deductions are legitimate.
Electronic payments would help authorities to determine if workers are paid correctly and punctually and begin to throw some light on this problem of excessive salary deductions. The Centre for Domestic Employees has announced its intentions to push for electronic payment by Giro or bank transfer for domestic employees, which has also been welcomed by the Association for Employment Agencies.
Can the Ministry share if there any plans to work with these two organisations in the implementation of such a scheme?
Mr Teo Ser Luck (The Minister of State for Manpower): On foreign domestic workers (FDWs), Mr Louis Ng asked if MOM had plans to support the Centre for Domestic Employees (CDE) and employment agencies in their push for electronic payment of salaries for domestic workers as proof of salary payment in the event of a dispute. Our employers are required to maintain a record of the monthly salary paid to FDWs. Employers are also required to pay the FDWs' salary electronically if she so requests. Some FDWs may prefer to be paid in cash and to avoid being charged a fee if their bank accounts fall below the minimum sum required. But we are open to Mr Ng's idea and we also support CDE's push to electronic payment. It is heartening to note that CDE is currently working with some banks to help FDWs set up bank accounts more easily and with better returns, and we will help to facilitate that and support them.
Louis asked the Minister for Manpower whether the Ministry will consider making it mandatory for employers to provide paid annual home leave to foreign domestic workers.
Mr Lim Swee Say (MOM): Home leave arrangements, like those for rest days, are mutually agreed between FDWs and employers. In MOM's FDW Study 2015, 56% of FDWs said they were provided with home leave either annually or at the point of renewal of their work passes. In addition, some employers also grant additional compassionate leave to their FDWs to deal with issues arising from unforeseen family circumstances back home.
Making annual home leave compulsory for all may not be practical given that households have very different needs and home care arrangements. Unlike companies that have a pool of employees to cover for those on leave, household employers typically employ only one FDW and will have to make significant adjustments to look for alternative arrangements when FDWs go on home leave. At the same time, some FDWs might prefer to be paid more in lieu of annual home leave. As such, the current approach provides greater flexibility for both FDWs and employers to mutually agree to leave arrangements as part of the employment contracts.
Whatever the arrangements, employers are expected to ensure the well-being of their FDWs throughout their stay in Singapore. In addition, MOM and Non-Governmental Organisations (NGOs) like the Centre for Domestic Employees also actively reach out to FDWs to check on their well-being and that they are well adjusted to working in Singapore.
Louis asked the Minister for Manpower (a) for each year over the past three years, what are the employment agencies industry averages for the foreign domestic worker (FDW) retention rate and transfer rate respectively; (b) what steps is the Ministry taking to improve these rates; and (c) whether it will require employment agencies to prominently display their FDW retention rate and transfer rate at their premises.
Mr Lim Swee Say (MOM): The average retention rate for foreign domestic workers (FDWs) placed by employment agencies (EAs) has been stable for the last three years at around 50%, an improvement from about 40% in 2013. The average FDW transfer rate has been low, below 1.5% since 2013.
The Ministry of Manpower (MOM) has been taking steps to improve the professionalism and service standards of the EA industry. Since last year, employers' ratings of EAs' services have been systematically captured by the EA Customer Rating System. EAs are thus incentivised to ensure better matching between FDWs and prospective employers to improve the retention and transfer rates.
The customer ratings of EAs are made available online on MOM's website under the EA Directory. Together with other information such as placement volume, retention and transfer rates, the EA Directory helps employers make an informed choice on which EA to engage. The EA Directory is updated weekly and enables employers to make comparisons. As it is working well, we have no plans to require EAs to physically display such information at their premises.
We also introduced the Advanced Placement Scheme (APS) pilot in August last year. Under the scheme, employers with caregiving needs are able to interview prospective FDWs face to face. Feedback has been positive as the face to face interviews have helped both parties better understand each other's needs and expectations. The majority of FDWs placed under APS are still with their first employer.
Louis asked the Minister for Manpower (a) what is the annual breakdown of foreign worker levies which have been collected each year since 2012; and (b) whether the Ministry will consider channelling some of these levies into a fund to provide subsidies for (i) households who need foreign domestic workers (FDWs) but are unable to afford the costs or (ii) financial assistance to FDWs who require help in exceptional circumstances.
Mr Lim Swee Say (MOM): The annual breakdown of foreign domestic worker (FDW) levies collected since 2012 is as follows:
Similar to other sources of Government revenue, the levies collected go into the Consolidated Fund. This is then used to fund all areas of Government expenditures including financial assistance schemes to support households in need.
One such assistance scheme is the FDW Grant administered by the Agency of Integrated Care. Eligible households with family members who require permanent assistance with three or more Activities of Daily Living (ADLs) can apply for an FDW Grant of $120 per month. This grant is means-tested and can be used to offset the cost of hiring an FDW. Since 2012, over 17,000 have benefitted from the FDW Grant.
Additionally, Singaporean households with children, elderly persons, or persons who require help with at least one ADL are offered a concessionary FDW levy rate of $60, much lower than the full FDW levy rate of $265.
FDWs who are in need of financial assistance can already turn to Non-Governmental Organisations (NGOs) like the Centre for Domestic Employees (CDE). These NGOs play an important role and have raised funds to provide humanitarian aid to FDWs. Instead of the government providing direct financial assistance to FDWs, we should continue to support the work of these NGOs.
Louis asked the Minister for Manpower (a) whether the mandatory medical insurance purchased by an employer for a domestic worker continues when the worker is put on a special pass by the Ministry or the police; and (b) if not, who is responsible for the worker's medical bills such as cost of consultation, prescription and procedures in those situations.
Ms Low Yen Ling (for the Minister for Manpower): Mr Speaker, Sir, Special Passes are issued to FDWs to legalise their stay in Singapore after their work permits have been cancelled.
When an employment contract ends, the employer is required to cancel the FDW's work permit before she departs Singapore. A Special Pass is granted to cover the period between the cancellation of the work permit, and the FDW's departure from Singapore for her home country. During this period, the employer is responsible for the upkeep and maintenance of the FDW, including medical treatment. So, I want ot assure Mr Ng that the mandatory medical insurance purchased by the employer continues to be in force.
In exceptional cases, an FDW may be required by MOM or the Police to further remain in Singapore to assist in investigations. For such cases, a Special Pass will also be issued to the FDW. MOM and the Police will assist the FDW who needs help with medical treatments, including paying for medical bills as required.
(Supplementary Question) Louis: Thank you, Mr Deputy Speaker. Can I just ask the Senior Parliamentary Secretary whether MOM is studying why the FDWs are borrowing money during their employment in Singapore? What are the main reasons? If we are not studying it, can I ask whether MOM is willing to conduct this study so that we understand what is the root of the problem is, and then, we can really address it?
Ms Low Yen Ling: I want to thank Member Mr Louis Ng for his question. Yes, we have been looking into all the possible reasons. Anecdotal evidences tell us that in certain cases, FDWs borrow from the licensed moneylenders to tide through certain requests from home such as unforeseen medical bills, college fees for their children and so on. They need to borrow this amount of money for a month before they receive their next pay check from the employers. We are thinking through and we will certainly consider mounting a study to understand this a little more.
Louis asked the Minister for Manpower (a) for each year in the past five years, among foreign domestic workers (FDWs) found to have borrowed money from licensed moneylenders, what is the median number of months between their first arrival in Singapore and the first loan they take; and (b) whether the Ministry can provide an update on whether a study has been conducted on this issue and, if so, what are the top three reasons for the sharp rise in the number of FDWs borrowing from licensed moneylenders.
Ms Low Yen Ling (for the Minister for Manpower): Mr Speaker, Sir, based on the available loan records from the Moneylenders Credit Bureau, which was set up in 2016, the median number of years between the foreign domestic workers' first arrival in Singapore and the time they took their first loan in 2016, is eight years. And for those who took up their first loan in 2017 and 2018, it is seven years and six years respectively. It means that the majority of foreign domestic worker (FDW) borrowers have worked in Singapore for some time.
MOM and MinLaw have studied the reasons for the surge in FDWs' borrowing in recent years. It is a combination of supply and demand side factors. First, it was observed that some licensed moneylenders (LMLs) have been targeting the FDWs through shopfront advertisements and readily extending loans to them. Second, some FDWs have been recommending loans to their fellow FDWs by word-of-mouth, WhatsApp or Facebook. Third, there are some FDWs acting as guarantors for fellow FDWs to obtain loans.
To curb the rise in borrowing by Work Pass holders, MOM and MinLaw had announced in October 2018 the introduction of aggregate loan caps, the self-exclusion framework and administrative penalties on Work Pass holders who borrow from unlicensed moneylenders. In July this year, just about two months ago, MinLaw announced further measures to stem the increase in moneylending activities targeting foreigners earning less than $10,000 per annum. The aggregate loan caps for foreigners earning less than $10,000 per annum were reduced and limits were placed on the supply of loans to foreigners. LMLs are also prohibited from displaying advertisements targeted at FDWs and from accepting foreigners as loan guarantors.
MOM and MinLaw are continuing to monitor the situation very closely. We are working closely with employers, non-governmental organisations (NGOs) and employment agencies to educate FDWs on prudent financial management and the risks and implications of borrowing money.
Louis: I thank the Senior Parliamentary Secretary for the reply. But could I ask, not the top three reasons of how they are borrowing but the top three reasons of why they are borrowing. I think there are some reports that say that they are borrowing because of family emergencies. I am just wondering how effective are our new measures will be. If it is for family emergencies and we block them from licensed moneylenders, will we not then push them to the unlicensed moneylenders that will put them in a more difficult position, the FDWs and the employers as well? That is why I think if we can study the reasons of why they are borrowing, I think then we can address the root of the problem and then come up with policies to address it.
Ms Low Yen Ling: Mr Speaker, Sir, I want to thank the Member Mr Louis Ng for his supplementary questions. At this juncture, let me share some numbers. We have been monitoring the numbers since we rolled out the measures announced in October 2018. Based on the data from Moneylenders Credit Bureau, from March 2016 to June 2019, the number of FDWs who took loans from licensed moneylenders in 2016 was 1,500. In 2017, it was 12,000. And in 2018, it was 42,000. And just in the first half of this year, it is 39,000. So, the spike has been from 2017 to first half of this year which really warrants the two rounds of measures.
The Member is right. The licensed moneylenders are allowed to lend money. So, there is an option for FDWs to borrow, especially those with genuine needs. And we did the study on not just the supply side consideration but also on the demand side. Some FDWs borrow because they need to send money back for their children's education, to pay for urgent medical bills, or to renovate or build houses and so on.
If you think about the numbers that I talked about, actually, in year 2016, it was quite stable, at 1,500. But it spiked seven times to 12,000 in 2017 and then 2018. The two Ministries studied it and we think that increased financial hardship does not appear to be a reason for the surge in the FDW borrowing. Nonetheless, we encourage our FDWs to maintain open communications with their employers to talk about their financial needs and also to plan their finances for rainy days.
In terms of the measures we highlighted in July, we have reduced the aggregate loan cap from $1,500 to $500 and we have also limited the number of foreigners that the licensed moneylenders can lend to in their loan book and so on. And we will continue to monitor the situation.
FDWs who need help, other than speaking to employers, we encourage them to also come forward to MOM and the NGOs, including the Centre for Domestic Employees or even the Foreign Domestic Worker Association.
Going back to Mr Louis Ng's question on why FDWs borrow, I mentioned that there are some FDWs with genuine needs. Our study also found that some FDWs are recommending their fellow FDWs to get loans and even going to the extent of being a guarantor for them to get the loan. When we did a survey amongst the FDWs who were standing there queuing up to borrow money, some of them did share that they were borrowing money to buy clothes, mobile phones or handbags. So, I think it is a combination of needs and wants.
Considerations for Punitive Actions against Employer of Parti Liyani
(Supplementary Question) Louis: Thank you, Sir. I thank the Minister of State for the reply as well. I understand that the foreign domestic workers or FDWs can be deployed outside their registered address if they are looking after the young children and the senior parents or the elderly parents of the employers. Could I ask whether moving forward, MOM can require a documented consent from the FDW if they are going to be deployed outside the registered address? That way, I think it can sort of resolve some of the disputes that have been raised at MOM level.
Ms Gan Siow Huang (for the Minister for Manpower): Mr Speaker, I thank the hon Member for the question. The answer is yes. Currently, employers are required to notify MOM, if they intend to deploy their foreign domestic workers to an address that is different from what is stated in the work permit, particularly if they require the foreign domestic worker to take care of their charges such as young children or the elderly at a relative's home. We are considering ways to enable the employer to be able to notify MOM more effectively so that we can track and approve such cases more consistently.
Source: Hansard (Parliament of Singapore)
Updates on Matters Arising from High Court Judgment in Former Foreign Domestic Worker Parti Liyani's Case
Louis asked the Minister for Home Affairs whether the Ministry will consider allowing foreign domestic workers and other work permit holders to be accompanied by non-legal personnel in Police interviews, similar to the Appropriate Adult Scheme.
Mr Desmond Tan (on behalf of the Minister for Home Affairs and Law): The agencies have considered the High Court judgment and are conducting reviews. These reviews are still in progress. As indicated by the Minister for Home Affairs and Minister for Law, a Ministerial Statement will be made to address the questions raised by Members after the reviews are completed. This is expected to be done at the November sitting.
Louis asked the Minister for Manpower whether the Ministry will consider increasing the maximum fine for employers who illegally deploy a foreign domestic worker.
Ms Gan Siow Huang (for the Minister for Manpower): Mr Speaker, employers who illegally deploy their foreign domestic workers face financial penalty of up to $10,000. They could also be debarred from hiring foreign domestic workers.
While the current administrative financial penalty is capped at $10,000, the eventual penalty takes into consideration the severity of the infringement and number of counts of the infringement that is committed. Between 2017 and 2019, 16 employers were issued with financial penalties each year, ranging from $3,300 to $24,000.
The number of cases of illegal deployment of foreign domestic workers has remained relatively stable over the past few years. We do not plan to review the maximum penalty at the moment. However, we are reviewing the guidelines to see if the cases currently resolved with a warning, should in future be subject to a financial penalty. This is so that employers will take their responsibility towards their foreign domestic workers seriously.
(Supplementary Question) Louis: Thank you, Sir. I thank the Minister of State for saying that the Ministry will be doing a review. Could I ask how long this review will take? And second, whether the NGOs will be consulted during this review process?
Ms Gan Siow Huang: Mr Speaker, I thank the hon Mr Louis Ng for that question. The review is on-going and we are also in the process of consulting various parties and if Mr Louis Ng has strong views or is in touch with organisations that have views on this, we welcome their input as well.
Louis asked the Minister for Manpower whether the Ministry will require employers of foreign domestic workers (FDWs) to obtain documented consent from their FDWs each time they are being deployed to a different address to care for the employers' young children or elderly people, such as through text messages or a logbook, so that disputes over illegal deployment can be more smoothly resolved.
Mrs Josephine Teo (MOM): Under the Employment of Foreign Manpower Regulations, foreign domestic workers (FDWs) are only allowed to work at their employer's residential address. In some cases, the employer may need her FDW to accompany her children or elderly family members to a relative's place at a different address while the employer is at work. This arrangement is allowed if the employer obtains the FDW's written consent and notifies MOM. Instead of writing in to notify MOM, the employer can now notify MOM through an online form on MOM's website. The employer must ensure that the FDW does not perform the full load of housework in both households. Employers are encouraged to get the FDW's written consent prior to the start of the employment and incorporate it into the FDW's employment contract.
Louis asked the Minister for Manpower when implementing the mandatory rest day for migrant domestic workers at the end of 2022, whether the Ministry intends to define the rest day as a full 24-hour period of uninterrupted rest.
Ms Gan Siow Huang (for the Minister for Manpower): Mr Speaker, MOM has earlier announced our plan to introduce the policy of requiring employers to provide their migrant domestic workers (MDWs) with at least one rest day a month that cannot be compensated away. This is to provide MDWs with opportunities to rest and recharge from work and to form a network of support outside the household.
We do not intend to define the number of hours of uninterrupted rest for MDWs in a given rest day. Different households have different arrangements with their MDWs based on their respective needs. If MOM prescribes a fixed number, it will impose rigidity on both employers and MDWs. What is more important is that the employer and the MDW maintain open communications on their respective needs and come to a mutual agreement on the rest day arrangement.
If MDWs and their employers need help to reach an agreement on the rest day arrangement, they may call MOM’s MDW helpline for advice. They may also seek assistance from a neutral third party, such as their employment agencies, or consider utilising the free dispute resolution services offered by the Centre for Domestic Employees (CDE) and the Foreign Domestic Worker Association for Social Support and Training (FAST) to arrive at an amicable solution.
The rest day policy will be implemented towards the end of 2022. This is to give existing employers and their MDWs time to adjust to the new policy.
Mr Speaker: Mr Louis Ng.
Louis: Thank you, Sir, I thank the Minister of State for the reply. Could I just ask how MOM will be monitoring and enforcing this mandatory rest day rule? And also, what action will be taken against employers who do not give their foreign domestic workers this mandatory rest day?
Ms Gan Siow Huang: MOM will be communicating to the employment agencies as well as to the employers on the requirement for this mandatory rest day policy. And MDWs, as well as their support network, or the neighbours who are concerned, or who have observed that MDWs are not being given the mandatory rest day can highlight this to MOM, or to associations, such as CDE and FAST, so that assistance can be rendered promptly.
MOM also regularly conducts checks on employers, as well as the migrant domestic workers, to make sure that the migrant domestic workers and the employers are getting along well and the MDWs are getting sufficient rest.
Louis asked the Minister for Manpower for each year between 2016 and 2020, how many and what percentage of employers of work permit holders have been (i) investigated (ii) issued with warnings (iii) issued with composition fines (iv) charged or (v) convicted, for compelling their workers to work on their rest days without prior written agreement.
Dr Tan See Leng (MOM): The Member should be aware that there is no legal requirement that consent for work on rest day must be given in writing. However, the Ministry of Manpower (MOM) advises that if work on a rest day is routinely scheduled, such agreement should be captured in writing to avoid disputes. Workers are entitled to withdraw consent any time.
Between 2016 and 2021, MOM received an average of 20 complaints each year involving work permit holders against employers for not providing one rest day a week. Employers were issued with advisories, warnings or composition fines in most instances and follow up inspections were conducted if necessary. All employers, many of whom were first time SME employers, rectified their employment practices promptly after MOM intervened.
Louis asked the Minister for Manpower (a) whether any penalties will be imposed on employers for not providing their migrant domestic worker with a day off once a month when it becomes mandatory by the end of 2022; and (b) if so, what are the penalties.
Dr Tan See Leng (MOM): Employers will be required to provide their migrant domestic workers (MDWs) with at least one rest day a month that cannot be compensated away by end 2022. This will be imposed as a Work Permit Condition under the Employment of Foreign Manpower (Work Passes) Regulations.
MOM recognises that some households, such as those with higher caregiving needs, may be concerned with the transition to the mandatory rest day policy. We encourage employers and their MDWs to initiate early conversations on their respective needs and come to a mutual agreement on the rest day arrangement. When the rest day policy comes into effect by end 2022, MDWs who do not receive at least one rest day per month that cannot be compensated away may call MOM's MDW helpline for advice. We will speak to both MDWs and their employers to better understand their respective needs and advise employers to work out alternative care arrangements.
If there are employers who fail to heed our advice to provide their MDWs with mandatory rest days, they may be issued warnings and debarred from hiring MDWs. We have sufficient tools to ensure that employers observe the rest day requirement and hope not to need to prosecute anyone as that will attract the penalties prescribed under the Employment of Foreign Manpower Act.
Louis asked the Minister for Manpower (a) whether the Ministry intends to make it a legal requirement that consent for work on rest day must be given in writing for low-wage workers below a given salary threshold; and (b) if not, why.
Dr Tan See Leng (MOM): As mentioned in MOM's response to Question No. 3 for written answer on the Order Paper for 11 March 2022, it is advisable that if work on a rest day is routinely scheduled, such agreement should be captured in writing to avoid disputes. Employees are entitled to withdraw consent any time.
It would be impractical to require employers to always obtain written consent, as business needs can be fluid and work on a rest day may not always be routinely scheduled. In these cases, verbal consent from the employee would suffice.
Any employee who is being compelled to work on his rest day, without consent, should approach MOM for further assistance.
Resources and discussions on foreign domestic workers
Mothership.sg - Here's how foreign domestic workers spend their days off in S'pore