What the Standard Contracts mean for FDWs

The keyword in both documents is "transparency" - not like the transparency of crystal, but better than the opacity of frosted glass.

Many FDWs who come to Singapore for the first time have no idea what to expect, especially with regards to what they have to pay. Some may have a vague idea, but sometimes find that the terms are not honoured!

With the launch of the Standard Contracts, the so-called "loan" is more accurately termed a "placement fee" in the Service Agreement. The amount stated in the Service Agreement much match that in the Annex B which is part of the Employment Contract.

A copy of the Employment Contract translated into the FDW's own language must be signed by her before she comes to Singapore. Accompanying the Contract is a Schedule of Salary Payment and Loan Repayment where the Total Loan (including loan for placement fee) is clearly stated. So if the amount stated is not the same in both the Service Agreement and the Employment Contract, the FDW should object or report to the AEAS or Casetrust.

As mentioned earlier, the Standard Contracts promise to level the playing field. But promises are not alway kept so the FDW must be alert and be prepared to speak up if she is forced to pay more than the amount agreed upon.

There are at 150,000 to 160,000 FDWs in Singapore. Some are said to have to work for 10 months or more for only $10 per month. The rest of the hard-earned salary goes to their Agent to pay for:

1. all the charges incurred in FDW's home country;
2. the profit of both Agencies (in Singapore and in the home country);
3. the charges that should really be paid for by the employer like
   • banker's guarantee and security bond;
   • pre-employment medical check-up;
   • meeting services at the airport or seaport;
   • orientation by National Safety First Council, Entry Test, etc.;
   • personal accident insurance, hospital insurance;
   • service fee payable by Employer for services rendered by Agency.
4. Etc., etc., etc.

Because the Agency charges the employer only $1, it must charge FDW a lot otherwise it will not survive. Human Rights Watch and other NGOs frown on this practice. The Deputy Prime Minister of Malaysia describes this practice as immoral. So what can you, the 160,000 FDWs, do to help the Standard Contracts deliver the promise of a level playing field?

For a start you can write to your friends who wish to come to work in Singapore and tell them about the Standard Contracts. You can send this page to them so they can read it for themselves. If you do not have a friend who wishes to come to Singapore, send this page home to someone and ask him/her to give to any young woman who is thinkging of working in Singapore.

(If you can translate this page into one of the languages spoken by FDWs, kindly do your part, send us your translation so that we can post it here for those whose folks at home do not read English.)

This following is for Filipinos mainly, for they often submit their friends' application to the local Agencies.

If you are one of those, please, before you submit your friend's application, find out first how much placement fee the Agency charges. Shop around and speak with different agencies, not necessarily those run by your compatriot. Then when the Agency later sends Annex B to your friend, she can compare the amount quoted by the Agency with the amount stated in Annex B. Advise your friend, "If the amount is different, do not sign."

Next avoid dealing with an Agency charging the employer a very low fee (like $1, $188, $388, etc.) because the less it charges the employer, the more it will have to charge the FDW. Those who charge the FDW $2,500 can afford to charge the employer only $68. Do you think this is immoral?

Ask the agency for a copy of the Employment Contract and the Service Agreement before you submit your friend's application.

If the Service Agreement or Employment Contract are different from the official ones approved by AEAS and Casetrust, do not deal with it, but report it to both AEAS and Casetrust. Call AEAS (tel: 6836-2618) for guidance or information when you are not sure. Or you can send an email to admin@aeas.org.sg.

Remember, the Standard Contracts cannot deliver their promise without the active participation of all those who want to level the playing field for domestic workers. Do not depend on the NGOs to fight your battle for you. You have a role to play to make this happen.

By the way, the Employment Contract comes with a Schedule of Payments. This Schedule shows how much the FDW is paying back to the Employer for the advance the Employer makes for the placement fee charged by the Agency. It also shows how much FDW receives from the Employer each month.