MOM New Rules for Employment agencies from 1st June 2022: Refund if your helper’s Contact is Terminated within 6 months

Are you aware of the MOM New Rules for Employment agencies? Are you aware that Employment agencies to provide partial refund option if employers terminate maid’s contract early?

Yes, it is a good news and also not so good news to employers. Let’s go through the details here what all employment agencies singapore will have to face with new employment agencies singapore .

MOM New Rules for Employment agencies

When did the MOM New Rules for Employment agencies started?

From 1 June 2022, employment agencies must provide a refund option of at least 50% of the service fees paid by the employer, if the MDW’s employment is terminated within the first six months of employment. The new refund policy will only apply to all service fees paid on or after Jun 1, said MOM. 

How does this work?

MOM states that the refund option will apply for up to three maids placed by an agency with the same employer. Employers can request for a replacement maid instead of a refund should the agency offer such an option.

In simple words, you hire a maid from an agency and if that maid is not suitable, within 6 months you can either choose to get 50% refund of the service fee paid or you can opt to take a replacement.

You have the same choice for the next 2 maids you hire. Once, you have taken the 4th maid from that agency, you are no longer entitled to a refund or a replacement.

Time periodHelpers HiredHelper TypeRefund Option available?Replacement Option available?
Within 6 monthsAOriginalYes *Yes *
Within 6 monthsBReplacementYes *Yes *
Within 6 monthsCReplacementYes *Yes *
Within 6 monthsDReplacementNoNo

* You can choose only 1. Either Refund or Replacement.

Not all Employers get this option of refund.

There are certain circumstances employment agencies will not be required to provide a refund. This is pretty straight forward.

  • If it is a direct hiring maid. In another words, employer sourced the maid by themselves and asked the agency to do just paper works and online application.
  • Employer breaches any employment laws or commits any offence against the maid.
  • Employer do not need the maid service anymore
  • A fourth MDW was hired through the EA.

What must employers do when hiring a maid with this new employment agencies rules?

Employer should take time and fill up the job requirements very clearly. Maid agency will also ensure that the Maid whom the employer has selected, is suitable for them and she is capable of fulfilling the job order.

Through these best practices, maid agency is able to better match the maid and the employer, improve transparency and clarity upfront to reduce downstream disputes. These employment agencies rules will ensure Employers will have less hassle of going through replacements.

How to get refund

  • Employer must discuss their choice to take replacement with the Maid agency.  
  • If the maid agency feels that the employer’s choice to take the replacement meets all the conditions stated above, the maid agency will agree for the refund.
  • Employer must allow the agency to talk to the helper and explain the situation to her, before terminating the Maid’s employment.

Maid agency will refund within 14 working days after:

  • the employer’s written request for the refund, or
  • the MDW’s work pass is cancelled, whichever is later.

Is this new MOM New Rules for Employment agencies, good?

In my opinion, I will say that this new MOM New Rules for Employment agencies is a very good measure brought up by MOM. It gives a clear understanding to all employers that no agency is perfect, and hiccups can happen when placing the maid.

No agency wants to go through the replacement process. All agencies only wish to go for new employers and get more clients. Unfortunately, if an employer feels that the maid whom they have hired is not a good fit, they can simply go for a refund or a replacement.

Therefore, this new MOM New Rules for Employment agencies will cut down many unnecessary arguments and will create a clear picture of what their maid hiring journey is going to look like.

All employers, who is going to step inside a maid agency will clearly know that they can only hire a Maximum of 4 helpers or there is a refund option if they don’t want a maid replacement.

What must employers do when hiring a maid?

Employer should take time and fill up the job requirements very clearly. Maid agency will also ensure that the Maid whom the employer has selected, is suitable for them and she is capable of fulfilling the job order.

Through these best practices, maid agency is able to better match the maid and the employer, improve transparency and clarity upfront to reduce downstream disputes.

What can we predict from this New MOM Policy?

We can come up to a conclusion that the employer will now more confidently hire a maid from an agency. They can be sure that their money will not be wasted, as they are eligible for 4 helpers for the service fee that they pay.

Another possibility that we can predict is that we may see a lot of transfer maids in the market.  Employers are very easily going to return the maids to the agency for transfer and they will opt for a replacement.

Now for those employers who are looking for urgent helpers can easily hire a readily available transfer maids.

Whatever it is, there seems to be more benefits then disadvantages in the New MOM New Rules for Employment agencies.

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