Employment of foreign domestic workers to face greater regulation

IMPACT – MEDIUM

What is the change? The Singapore Ministry of Manpower will impose new work permit conditions on those who employ maids and other foreign domestic workers, or FDWs.

What does the change mean? Beginning in January, employers will be prohibited from keeping any money belonging to their FDWs, including salaries, even if requested for safekeeping by the employee.

• Implementation time frame: Jan. 1, 2019.
• Visas/permits affected: Work permits for FDWs.
• Business impact: Companies whose employees hire FDWs should be aware of the new restrictions.

Background: The ministry said that the new policy would help avoid financial disputes between employers and their FDWs. Employers are encouraged to assist their FDWs in opening bank accounts and to pay the FDWs’ salaries electronically.

Analysis & Comments: Individuals who hire FDWs, including expatriate employees in Singapore, should prepare for the new rules and consider paying their household employees electronically. Employers of FDWs are encouraged to contact the Ministry of Manpower for additional information.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.