A banker's guarantee and performance bond of 7,000 Singapore dollars would no longer be required for Singaporean employers when hiring Filipino domestic workers, the Department of Migrant Workers (DMW) said.
In a statement, DMW said the dropping of the bond was part of the agreement that was reached when Secretary Susan Ople to Singapore's Ministry of Manpower (MOM) Minister Tan See Leng on the sidelines of President Ferdinand R. Marcos, Jr.’s state visit to Singapore.
Under the existing law, Singaporean employment agencies and employers are required to purchase a performance bond of S$7,000 when hiring a Filipino helper. This equates to 284,140.79 when convert to the prevailing currency of P40.58.
This constitutes a contract between the employer and the Philippines Embassy to ensure that the helper gets proper and fair treatment while working in Singapore.
According to the policy posted on the website of the Philippine Embassy in Singapore, the performance bond can be acquired through a bank guarantee. It is required if the helper plans to go back to the Philippines for home leave or if she wishes to renew her passport.
As a pre-requisite of the Philippine Overseas Labor Office (POLO) in Singapore, the requirements for Contract Verification for hiring Filipino domestic workers are:
1. Original signed Standard Employment Contract for Domestic Workers;
2. Original signed Undertaking of Employer Photocopy of valid work permit or In-Principle Approval (IPA);
- Photocopy of the data page of passport valid for at least six months from the date of departure from the Philippines;
- Photocopy of any valid identification of employer;
- Original Letter of Guarantee for the Seven Thousand Singapore Dollars (SGD 7,000.00) Philippine Embassy Bond from any reputable insurance company in Singapore with two years of validity from the date of application at the Philippine Embassy (This is different from the MOM Bond); and
- Payment of SG$17.00 (cash only).
With the removal of the bond requirements for employers hiring OFWs, the DMW said it signifies the recognition of the ‘deep and abiding friendship’ between the Philippines and Singapore.
Tan, for his part, has expressed appreciation for the abolishment of bonds, as he affirmed his commitment to protecting the interests and welfare of all migrant workers in Singapore.