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Updated by MOM
My foreign domestic worker (FDW) wishes to end her employment contract prematurely, and she has not repaid her placement loan. What can I do?
Our EA Licence Conditions require employment agencies (EA)s to state their refund policies in their contracts with employers. This includes refunds for loans extended by employers to their FDWs for the placement fee.
Therefore, if the FDW terminates her employment prematurely with an outstanding placement loan, employers should refer to the contract they signed with their EA for details on the refunds for loans. The contract will lay out whether and under what circumstances they can get a full or partial refund.
There are also EAs which do not require employers to extend placement loans to FDWs. Hence, the issue of a refund will not arise. Employers should inform the EA if they prefer such an arrangement.
This information is sourced from MOM.
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