Transferring your Foreign Domestic Worker (FDW) to another employer in Singapore is not just a matter of paperwork—it comes with important financial responsibilities. Whether you are planning a direct transfer or going through an agency, the transfer of FDW must follow guidelines set by the Ministry of Manpower (MOM).
As the current employer, you must settle all outstanding payments and obligations before the transfer can take place. This ensures a smooth process, protects your FDW’s rights, and helps you avoid any penalties.
Here are the five key financial liabilities every employer must take care of before the FDW transfer is completed.
1. Unpaid Salary and Overtime
You must ensure that all salary payments are made up to the FDW’s final working day. This includes any regular wages as well as additional payments for overtime work, if applicable. It is best practice to document all payments and get your FDW’s written acknowledgement.
According to the Ministry of Manpower (MOM), FDWs should be paid their salary on time and in full every month. MOM advises employers to keep a monthly salary record, which both parties should sign to avoid misunderstandings.
2. Unused Leave Compensation
If your FDW has unused annual leave at the point of transfer, you must compensate her in cash. This also applies to public holidays she worked on without a replacement day off.
Employers sometimes overlook this point, assuming leave is only necessary if the FDW is going home. In reality, the compensation is due regardless of her future plans.
3. Medical Costs and Insurance Coverage
Before transferring your FDW, make sure all her medical expenses have been settled. This includes any bills for treatments or check-ups she may have undergone during her time with you.
You must also maintain valid medical insurance coverage up to the point of transfer. As MOM explains, every employer is required to purchase and maintain medical insurance for their FDW, covering inpatient care and day surgery with an annual claim limit of at least S$60,000. If the plan has sub-limits, each sub-limit must also be at least S$60,000. The policy must include a co-payment feature where the insurer pays 75% and the employer pays 25% for claim amounts above S$15,000.
4. Levy Payment
The Foreign Domestic Worker levy is a monthly fee paid to the government. You remain responsible for this levy until the FDW’s official transfer date, even if she stops working for you earlier.
The CPF Board recommends checking your final levy amount using your CPF account online. This helps avoid delays or penalties due to underpayment or late settlement.
5. Return Airfare (If Applicable)
If your FDW is not transferring to another employer and instead returning to her home country, you are required to pay for her one-way ticket home. This is part of your obligation as an employer.
However, if the FDW is being transferred to another household, check with the new employer or agency about who will handle her future travel arrangements. Always get a confirmation in writing to prevent confusion.
Penalties for Not Settling Liabilities
Failing to fulfil these obligations can lead to serious consequences. MOM may bar you from hiring another FDW in the future, and you may be subject to legal action if the FDW raises a formal complaint. Protect your reputation and peace of mind by settling all matters properly.
Helpful Checklist Before Transfer
- Final payslip with worker’s signature
- Proof of unused leave compensation
- Evidence of levy and insurance coverage
- Confirmation of settled medical bills
- Travel arrangement (if required)
Settle Your FDW Responsibilities Properly with NannyStreet
At NannyStreet, we guide employers through the proper process of FDW transfer to ensure everything is done right. From salary payments to medical insurance and levy matters, we help you stay compliant while treating your helper fairly.
If you’re unsure about what you need to settle before the transfer of FDW, our experienced team is here to assist. Let’s ensure that every handover is smooth, respectful, and within the legal requirements.