From 1 June 2022, employment agencies in Singapore must provide employers with a refund option of at least 50% of the service fees paid by the employer, if the migrant domestic worker’s employment was terminated within the first six months of her employment.

According to the Ministry of Manpower, this measure encourages agencies to take stronger ownership in achieving a good match between migrant domestic workers and employers.

The refund option will apply for up to three Migrant Domestic Workerss that the agency places with that same employer. The termination of employment must be within the first six months of employment. The employer could request for a replacement worker instead of a refund, if this is an option offered by the agency.

Kevin Teoh, Commissioner for Employment Agencies and Divisional Director of the Ministry of Manpower’s Foreign Manpower Management Division, said, “The service fee refund policy is part of a series of measures to promote better matching of employers with Migrant Domestic Workers who best meet their needs. This new measure was developed based on feedback from employers, employment agencies and NGOs (non-governmental organisation). Employment agencies play a crucial role in facilitating a good match between the employer and the Migrant Domestic Workers.”

K Jayaprema, President of AEA(S), the Association of Employment Agencies Singapore, added, “The service fee refund policy represents the shared responsibility of EAs and employers, and encourages both parties to spell out job requirements clearly so that candidates can be matched fittingly. AEA(S) is confident that it will reduce grievances and contractual conflicts between EAs and employers.”

Agencies will not be required to provide a refund if there was no matching service provided by the agency, or if the employer breaches any employment laws or commits any offence against the worker; or if the worker was hired as a caregiver, and the caregiving need no longer exists.

The Ministry added that employers who are seeking a refund will need to inform their agency before the worker’s employment is terminated.