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SINGAPORE: The Ministry of Manpower (MOM) said that new anti-profiteering conditions to protect foreign workers in Singapore will not affect private contractual agreements between employers and their domestic helpers.
In particular, salary deductions for overseas loan repayments taken by foreign maids will be allowed. However, what will not be tolerated are salary deductions by employers to recover employment-related expenses for which they are responsible.
Maid agency boss Winnie Wang said when new anti-profiteering rules on the employment of foreign workers kicked in on Monday, many agencies were clueless whether prospective customers would have to shoulder the entire cost of hiring a new foreign maid.
This includes local agency fees and the maid's overseas placement loan which could amount to some S$4,000.
Winnie Wang, Overseas Recruitment Consultant, Advance Link, said: "At that moment it was very confusing. Does it not include the maid's overseas placement? Or is it the overseas placement that we can’t deduct from the maid's salary?"
The new rules should be welcome relief to maid agencies, who were initially worried that it would encourage bad practices.
Ronnie Toh, Employment Consultant, A C Toh Enterprises, said: "Where in the world is there a free trip? I believe the maid also has to bear some cost. Otherwise anybody could come here, anybody from their own country just because the employer in Singapore pays for everything."
MOM said its new rules are meant to clamp down on errant employers who make salary deductions to recover expenses for which they are responsible. These include fees associated with securing work permits, medical insurance, or repatriation.
Employers who breach the new rules can be fined up to S$5,000 and imprisoned for up to six months.
The new Employment Agency Licence Condition also prohibits employment agencies from offering payment to employers, in exchange for hiring foreign workers through them. - CNA/vm
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