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Security Bond for hiring Helper? Do I need Waiver of Counter Indemnity?
A Guide to Compliance with MOM Regulations
When hiring a foreign domestic worker (FDW) in Singapore, one key requirement set by the Ministry of Manpower (MOM) is the security bond. This is a critical aspect that every employer must understand to ensure a smooth and compliant employment process.
What is a Security Bond?
A security bond is a binding pledge to pay the Singapore government a fixed sum of money should there be a breach in the conditions of the Work Permit. As an employer, you are required to take out a security bond for each FDW you employ, regardless of nationality.
Why is the Security Bond Needed?
The security bond serves as a financial guarantee that you will adhere to all regulatory conditions associated with employing a FDW. These conditions include timely payment of salary, provision of proper accommodation, and ensuring medical care for your domestic helper.
Amount and Requirements:
The security bond amount is currently set at SGD 5,000. It must be secured before the FDW arrives in Singapore. The bond can be purchased from an insurance company or bank that is licensed to operate in Singapore.
Helpful resources:
When is the Security Bond Forfeited?
MOM will not forfeit the security bond under certain mitigating circumstances, such as:
- If the missing FDW is eventually found.
- If the FDW leaves Singapore legally, with the proper clearance from immigration.
Situations leading to forfeiture could include non-compliance with employment conditions or if the FDW goes missing without reasonable resolution.
Compliance and Best Practices
Employers should maintain regular communication and provide a supportive environment for their FDW. Ensuring clarity in job expectations and maintaining documentation can help in fulfilling compliance requirements effectively.
For more information on ensuring you meet all necessary requirements as an employer of a foreign domestic worker, contact Ready Employment, your trusted partner in domestic workforce solutions.