The Embassy of the Republic of Indonesia in Singapore has notified Employment Agencies (EAs) here that it would impose a new $6,000 Performance Bond requirement on employers who hire Indonesian foreign domestic workers (FDWs).
This is not a requirement of the Singapore Government. It is separate from the $5,000 Security Bond which MOM requires all employers to purchase for every FDW hired.
MOM understands that, if notified by the EA, an employer of a new FDW from Indonesia will be asked to purchase a Performance Bond guarantee from an insurer approved by the Embassy, and sign a standard employment contract issued by the Embassy. Employers who renew passports of their current FDWs or process documents at the Indonesian Embassy may also be asked to do likewise.
An employer could be liable to pay the insurer a sum of up to $6,000 if the Embassy forfeits the Performance Bond. The specific conditions under which the Embassy may forfeit the Performance Bond are not clear. There also appears to be a lack of mediation and dispute resolution process available to employers before the Performance Bond is forfeited.
Advisory to Employers
MOM has made it clear to the Indonesian Embassy and the Indonesian Ministry of Manpower that the Performance Bond requirement is unnecessary given Singapore’s comprehensive regulatory framework to protect all FDWs.
EAs are obliged to provide explanation and obtain written acknowledgement from affected employers of FDWs indicating that they understand the implications before purchasing the Performance Bond guarantee or signing the Embassy’s standard employment contract.
We will also be sending an advisory to all existing employers of Indonesian FDWs to urge them to read and understand the terms and conditions, before purchasing the Performance Bond guarantee or signing the standard employment contract. If they have questions , they should seek clarification directly from the Indonesian Embassy.