This guide outlines the essential legal, financial, and ethical steps for employers to ensure a compliant and humane process, protecting both parties from potential penalties and disputes.

1. Understanding FDW Contract Termination in Singapore

Foreign Domestic Workers (FDWs) are non-citizen individuals authorized by MOM to perform household duties in Singapore, governed by specific Work Permit conditions and a typical two-year employment contract.  

Contract termination can be initiated by the employer, the FDW, or through mutual agreement. Common reasons include changing household needs, employer relocation, FDW misconduct (e.g., theft, violation of terms), poor performance, communication breakdowns, or the FDW becoming medically unfit or pregnant. FDWs may also terminate due to personal reasons, family obligations, or severe issues like abuse or non-payment of salary.  

2. Key Principles of Contract Termination

Both employers and FDWs can terminate the employment contract by serving the stipulated notice period or providing payment in lieu of notice.  

Employment contracts typically specify the notice period, often one month. If not specified, MOM’s statutory guidelines apply based on the FDW’s length of service:  

All notice periods include public holidays and weekends, and can be mutually waived.  

If the notice period cannot be served, the terminating party can pay compensation equivalent to the salary for that period. Mutual waiver of this payment is also possible. Employers are encouraged to be compassionate if an FDW cannot afford payment in lieu.  

Important: Securing a written agreement on the FDW’s last day and reasons for termination is highly recommended to prevent disputes. A written termination letter is mandatory from the terminating party. Employers should ensure a signed employment contract exists, with both parties retaining a copy.  

3. Employer’s Responsibilities During Termination

Employers bear significant financial and administrative responsibilities during FDW contract termination.

3.1 Financial Obligations

• Settling Outstanding Salary and Benefits: All outstanding salary, accrued benefits, and compensation for unused annual leave or payment in lieu of notice must be settled before the FDW’s last day or departure. Employers must keep written records of all payments. Failure to pay salary promptly is a serious offense.
  
  
• Repatriation Costs: The employer is solely responsible for the full cost of repatriating the FDW to her home country. This includes a direct one-way air ticket with check-in luggage, connecting transport, and an allowance for transit. The FDW’s departure must be within 2 weeks of Work Permit cancellation. Coercing the FDW to pay for her own ticket is illegal.  
  
  
• Security Bond Discharge: A S$5,000 security bond is furnished to the Singapore Government, forfeited if laws or Work Permit conditions are breached. The bond is typically discharged within 1-2 weeks after the FDW’s verified departure, provided all conditions are met.  
  
  
• Cessation of Levy Payments: The monthly FDW levy is charged until 1 day before the Work Permit cancellation date.  

3.2 Work Permit Cancellation Procedure

The employer is responsible for cancelling the FDW’s Work Permit via MOM’s eService portal.  

• Who Can Cancel: Employer, sponsor, or licensed employment agent. In case of employer’s death, next of kin or legal representative.  
  
  
• When to Cancel: Within 1 week after the FDW’s last day of work or 1 day after Work Permit expiry, whichever is earlier. If the FDW has already departed, within 1 week of departure date.  
  
  
• Pre-cancellation Preparations: Agree on last day, settle all payments, ensure valid passport, agree on transit arrangements and allowance, and purchase a direct one-way air ticket for departure within 2 weeks of cancellation. Check airline and embassy requirements.  
  
  
• Online Cancellation: Log in to FDW eService with Singpass, select cancellation reason, and input details. Cancellation is usually immediate.  
  
  
• Special Pass: Immediately print and give the Special Pass to the FDW. This allows her to legally stay in Singapore until her scheduled departure (typically up to 14 days) and must be shown to immigration upon exit. Overstaying is a criminal offense.
  
  
• Post-cancellation Actions: FDW cannot work once Work Permit is cancelled. Cut the physical Work Permit card in half and discard it. Verify FDW’s actual departure to ensure compliance and security bond discharge.  

4. Foreign Domestic Worker’s (FDW) Rights and Options

FDWs have the right to terminate their employment contract by serving notice or paying in lieu, which is not considered a breach of contract. Employers are encouraged to find mutually agreed solutions, especially if the FDW faces financial hardship.  

FDWs have structured mechanisms for dispute resolution:

• Non-Payment of Salary: If salary is not paid within 7 days, the FDW can terminate without notice. Report to MOM’s MDW helpline at 1800 339 5505 (Mon-Fri, 8:30 AM – 5:30 PM) for conciliation.
  
   
• Abuse or Ill-Treatment: Report immediately to the Singapore Police Force. Convicted employers face severe penalties, including imprisonment and permanent bans from employing FDWs. FDWs can also contact the FDW Helpline for assistance.  
  
  
• Wrongful Dismissal Claims: FDWs can file a claim with the Tripartite Alliance for Dispute Management (TADM) within one month of their last day of employment if dismissed without just cause. Mediation at TADM is mandatory before filing at the Employment Claims Tribunals (ECT).
  
   

Key Helplines and Support Organizations for FDWs

5. Alternatives to Termination: Transferring an FDW

Transferring an FDW to a new employer is a mutually beneficial alternative, allowing the FDW to continue working in Singapore and potentially alleviating repatriation costs for the current employer.  

5.1 Process for Direct Transfer

• Eligibility: FDW’s Work Permit should have >30 days validity, no unresolved disputes, and completed 6-monthly medical examination. Employer can apply for a 1 time extension from MOM if work permit has less than 30 days left and a transfer is pending initiation.
  
  
• Consent: Obtain explicit consent from current employer, new employer, and FDW.  
  
  
• New Employer Application: New employer applies for Work Permit via MOM’s Work Permit Online (WPOL) portal.  
  
  
• Current Employer Approval: Current employer approves the transfer request via FDW eService and submits a Transfer Declaration Form.  
  
  
• Medical Examination: MOM may require a medical examination.  
  
  
• New Work Permit: Upon approval, the new Work Permit is issued, old one automatically cancelled. New employer prints Temporary Work Permit (TWP).  
  
  
• Security Bond & Insurance: New employer purchases new security bond and insurance.  
  
  
• Levy: Current employer pays levy until new Work Permit is issued.  
  
  
• Old Card: Current employer cuts and discards the old Work Permit card.  
  

5.2 Transferring via an Employment Agency

Licensed employment agencies can streamline the transfer process, handling documentation and ensuring MOM compliance. They may also assume repatriation responsibility if the FDW cannot secure new employment.  

6. Important Considerations and Best Practices

• Avoiding Overstaying Penalties: Ensure the FDW departs Singapore before her Special Pass expires. Overstaying can result in fines or bans for both FDW and employer. Confirm departure by checking immigration records.
  
  
• Compliance with Home Country Regulations: Consult the FDW’s home country embassy for specific exit requirements or travel advisories before booking flights.  
  
  
• Maintaining Open Communication and Compassion: Clear, respectful communication with the FDW is crucial for a smoother transition. Discuss contractual obligations and seek mutually agreed solutions, especially regarding payment in lieu of notice.  
  
  
• Role of Employment Agencies: Agencies can assist with administrative documentation, repatriation logistics, and ensuring MOM compliance, as well as facilitating transfers or finding replacements.  
  

7. Conclusion

Terminating an FDW contract in Singapore requires adherence to MOM regulations, encompassing financial obligations, Work Permit cancellation, and respecting FDW rights. Employers must settle all outstanding salaries, bear repatriation costs, and ensure timely Work Permit cancellation and Special Pass issuance.

The option of transferring an FDW is encouraged as a mutually beneficial alternative. A well-managed termination process ensures legal compliance for employers and a dignified transition for FDWs, contributing to a fair and respectful domestic employment environment.