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Published on 25 Sep 2024 by Lea C.
The Ministry of Manpower (MOM) mandates that employers need to have a security bond for their Foreign Domestic Workers (FDW) in Singapore. This security bond is a crucial component of the employment process and serves to protect both the employer and the Ministry of Manpower (MOM). Here’s an in-depth look at what the security bond entails and why it is essential.
What is a security bond?
A security bond is a legally binding agreement between the employer and the Singapore government. It serves as a financial guarantee that the employer will fulfill all obligations related to the employment of their foreign domestic worker.
Purpose of the security bond
The primary purpose of the security bond for maid is to ensure compliance with the rules and regulations set by MOM. It helps to safeguard the welfare of the FDW and ensures that the employer adheres to the terms of employment.
Security bond MOM requirements
Amount and Coverage
The security bond requires employers to lodge a sum of S$5,000 with MOM. This bond covers various obligations, including:
- Providing adequate accommodation and care for the maid
- Paying the salary on time
- Ensuring the maid does not engage in illegal activities
- Arranging for the maid's return to her home country at the end of the employment contract
Exemptions
Employers may be exempted from the security bond requirement if they are sponsoring a Malaysian domestic worker, as they are not subject to this requirement. However, all other FDWs must have a security bond in place before starting work in Singapore.
How to obtain a security bond
Insurance Companies
Employers can purchase a security bond from MOM-approved insurance companies. These companies offer packages that typically include both the security bond and maid insurance, providing comprehensive coverage for various scenarios.
An example of a reliable maid insurance provider is Insurance Market Singapore. It is a comprehensive platform designed to navigate the complex landscape of insurance options, helping you find, compare, and purchase policies tailored to your personal needs and circumstances. You can select up to three different maid insurance packages from a selection of 20 well-known insurance products in Singapore and compare them side-by-side to identify the best option for you. This feature allows you to easily compare costs for various coverages, including liability, belongings, absence, accidents, injuries, treatments, and other medical expenses. Lite, Standard, and Premium subscribers of Ministry of Helpers get 10% discount on maid insurance when they avail it via Insurance Market Singapore.
When purchasing maid insurance, you may come across an optional add-on called the "waiver of counter indemnity." The Ministry of Manpower requires employers of foreign domestic workers to provide a S$5,000 security bond to ensure compliance with employment laws. The waiver of counter indemnity is an optional feature in maid insurance policies where the insurer agrees to cover the loss of this deposit in the event of a contract breach, potentially reducing your liability from S$5,000 to S$250 or even S$0.
For employers with a solid track record of hiring domestic workers and no legal issues, the waiver of counter indemnity serves as a peace-of-mind option rather than a necessity. This feature offers added assurance, knowing that any unexpected legal complications won't result in significant financial loss.
Application Process
To apply for a security bond, employers need to:
- Select an MOM-approved insurer.
- Complete the application forms, which often include personal information, employment details, and the terms of the bond.
- Pay the necessary fees, which may vary depending on the insurer and coverage options.
Duration and Renewal
The security bond is valid for the duration of the FDW's employment pass, usually two years. Employers must ensure the bond remains valid throughout the employment period. If you plan to renew the FDW's contract, the security bond will also need to be renewed.
Consequences of bond forfeiture
Breach of Terms
If an employer fails to comply with the terms set out by MOM, the security bond may be forfeited.
Common breaches include:
- Not paying the FDW's salary on time
- Allowing the FDW to work for another employer
- Failing to provide adequate care and accommodation.
- You or your helper violates any of the Work Permit or security bond conditions.
- Fail to send helper home when her Work Permit is expired, revoked or canceled.
- Helper goes missing.
Tips for managing the security bond
To avoid issues with the security bond, employers should familiarise themselves with MOM regulations and ensure full compliance. This includes timely payment of salaries, providing suitable living conditions, and maintaining proper documentation.
You might be interested in:
How to Open POSB and DBS Bank Accounts in Singapore
Everything You Need to Know About Your Helper's Work Permit
Guide to EOP and SIP in Singapore
What is a Certificate of Employment Intermediaries (CEI)?
How to Support Your Helper's Mental Well-Being in Singapore
The Ministry of Manpower (MOM) mandates that employers need to have a security bond for their Foreign Domestic Workers (FDW) in Singapore. This security bond is a crucial component of the employment process and serves to protect both the employer and the Ministry of Manpower (MOM). Here’s an in-depth look at what the security bond entails and why it is essential.
What is a security bond?
A security bond is a legally binding agreement between the employer and the Singapore government. It serves as a financial guarantee that the employer will fulfill all obligations related to the employment of their foreign domestic worker.
Purpose of the security bond
The primary purpose of the security bond for maid is to ensure compliance with the rules and regulations set by MOM. It helps to safeguard the welfare of the FDW and ensures that the employer adheres to the terms of employment.
Security bond MOM requirements
Amount and Coverage
The security bond requires employers to lodge a sum of S$5,000 with MOM. This bond covers various obligations, including:
- Providing adequate accommodation and care for the maid
- Paying the salary on time
- Ensuring the maid does not engage in illegal activities
- Arranging for the maid's return to her home country at the end of the employment contract
Exemptions
Employers may be exempted from the security bond requirement if they are sponsoring a Malaysian domestic worker, as they are not subject to this requirement. However, all other FDWs must have a security bond in place before starting work in Singapore.
How to obtain a security bond
Insurance Companies
Employers can purchase a security bond from MOM-approved insurance companies. These companies offer packages that typically include both the security bond and maid insurance, providing comprehensive coverage for various scenarios.
An example of a reliable maid insurance provider is Insurance Market Singapore. It is a comprehensive platform designed to navigate the complex landscape of insurance options, helping you find, compare, and purchase policies tailored to your personal needs and circumstances. You can select up to three different maid insurance packages from a selection of 20 well-known insurance products in Singapore and compare them side-by-side to identify the best option for you. This feature allows you to easily compare costs for various coverages, including liability, belongings, absence, accidents, injuries, treatments, and other medical expenses. Lite, Standard, and Premium subscribers of Ministry of Helpers get 10% discount on maid insurance when they avail it via Insurance Market Singapore.
When purchasing maid insurance, you may come across an optional add-on called the "waiver of counter indemnity." The Ministry of Manpower requires employers of foreign domestic workers to provide a S$5,000 security bond to ensure compliance with employment laws. The waiver of counter indemnity is an optional feature in maid insurance policies where the insurer agrees to cover the loss of this deposit in the event of a contract breach, potentially reducing your liability from S$5,000 to S$250 or even S$0.
For employers with a solid track record of hiring domestic workers and no legal issues, the waiver of counter indemnity serves as a peace-of-mind option rather than a necessity. This feature offers added assurance, knowing that any unexpected legal complications won't result in significant financial loss.
Application Process
To apply for a security bond, employers need to:
- Select an MOM-approved insurer.
- Complete the application forms, which often include personal information, employment details, and the terms of the bond.
- Pay the necessary fees, which may vary depending on the insurer and coverage options.
Duration and Renewal
The security bond is valid for the duration of the FDW's employment pass, usually two years. Employers must ensure the bond remains valid throughout the employment period. If you plan to renew the FDW's contract, the security bond will also need to be renewed.
Consequences of bond forfeiture
Breach of Terms
If an employer fails to comply with the terms set out by MOM, the security bond may be forfeited.
Common breaches include:
- Not paying the FDW's salary on time
- Allowing the FDW to work for another employer
- Failing to provide adequate care and accommodation.
- You or your helper violates any of the Work Permit or security bond conditions.
- Fail to send helper home when her Work Permit is expired, revoked or canceled.
- Helper goes missing.
Tips for managing the security bond
To avoid issues with the security bond, employers should familiarise themselves with MOM regulations and ensure full compliance. This includes timely payment of salaries, providing suitable living conditions, and maintaining proper documentation.
You might be interested in:
How to Open POSB and DBS Bank Accounts in Singapore
Everything You Need to Know About Your Helper's Work Permit
Guide to EOP and SIP in Singapore
What is a Certificate of Employment Intermediaries (CEI)?
How to Support Your Helper's Mental Well-Being in Singapore