Promoting Employment of Foreign Migrant Workers
- Foreign Domestic Workers in Singapore -
Bongsoo Jung
Contents
Ⅰ. Introduction
Ⅱ. The Foreign Domestic Servant Scheme in Singapore
Ⅲ. Evaluation of the Use of Foreign Domestic Workers in Singapore
Ⅳ. Legal Protections for Domestic Workers & Introduction to Korea of Singapore’s Foreign Domestic Servant Scheme
Ⅴ. Conclusion
ABSTRCT
People and products cross borders freely in the era of globalization, integrating all nations into one great market. Singaporeans have taken advantage of the supply of cheap foreign domestic workers. Through this, the city state has increased its competitiveness by making the most of its female manpower by keeping child-rearing expenses low while improving the quality of life. Koreans also need to take advantage of the supply of foreign domestic workers, as is done in Singapore, towards increasing the low birth rate and assisting highly-trained women to avoid giving up their careers to raise families. Singapore introduced its Foreign Domestic Servant Scheme (FDSC) in 1978 to bring in foreign domestic workers. There are three factors behind the FDSC’s success. First, there has been a greater supply of domestic workers from neighboring countries than demand for their services in Singapore. Second, it has been possible to maintain a secure supply for a long time through the strict immigration regulations that make it difficult for foreign domestic workers to work illegally. Third, Singapore’s indirect supervisory administration makes efforts to protect the human rights of these domestic workers and improve their working conditions.
Key words: Foreign Domestic Worker, Migrant Worker, Immigration Law, Illegal Worker, Immigration Regulations, Singapore’s Foreign Domestic Servant Scheme
Ⅰ. Introduction
The most well-known social problems in Korea are its low birthrate and aging society. Towards mitigation of these issues, the government has spent a massive amount on subsidies through its multi-child family policy, and has made every effort to increase the birthrate through government work and family support policy. However, there has not been any significant improvement. There are several reasons for the lower birthrate, but I’d like to look at two in particular: 1) women are delaying marriage and childbirth to develop their careers; and 2) raising children in Korea is very expensive. Hiring babysitters is one of the highest costs, amounting to approximately KRW 1.5 to 2.5 million per month. In particular, due to the considerable expenses involved in childcare for working couples, women usually quit their jobs when they are pregnant with their second baby. However, as Singapore, Hong Kong, and Taiwan pay only between KRW 400,000 and 600,000 per month for domestic workers, they can afford live-in help .
Singaporean women rarely quit their jobs after marriage, childbirth, or while raising their children. This is possible because people in the middle class are able to employ low-cost foreign domestic workers to assist them. Singaporean domestic workers number 227,100 people, or 4% of Singapore’s total 2016 population of 5.54 million. The Singaporean government directly manages foreign domestic workers under a systematic and thorough management system that ensures it can continuously provide good-quality personnel.
This study introduces Singapore’s Foreign Domestic Servant Scheme and evaluates the related immigration policy. Based upon this Scheme, I would like to review whether this success in Singapore can be reproduced in Korea, and if so, what existing labor laws need to consider at the time of introduction of a similar program.
Ⅱ. The Foreign Domestic Servant Scheme in Singapore
The Foreign Domestic Servant Scheme in Singapore is managed under systematic government supervision. Namely, the government provides a stable supply of foreign domestic workers through its Work Permit system and also through a high employment tax. The government takes special measures to protect these foreign domestic workers through direct management of their health and safety. In the manufacturing industry, one foreign worker per two Singaporean workers is permitted for each company within the maximum quota available under the employment permit system as of 2015, while foreign domestic workers can be hired under the Work Permit system without a maximum.
Hereafter, I would like to look in detail at the employment procedure scheme for foreign domestic workers in Singapore and expenses that the employer should bear.
1. Background to the Foreign Domestic Servant Scheme
On June 5, 2016, the Singaporean newspaper, “The Straits Times” featured an article entitled “Can Singaporeans do without maids?” This news article was related to the announcement by the Indonesian government that it would limit the number of domestic workers going to Singapore if their domestic workers could not stay in dormitories outside the employers’ houses. The following excerpt from the feature article explains why and how the Singaporean government introduced and utilized foreign domestic workers .
“From the 1930s to 1960s, employing live-in help was the domain of expatriates and wealthy local employers. This was the time of the legendary amahs, women hailing mostly from Guangdong province in China and distinctive due to their plaited hair and "uniforms" comprising white blouses and black pants. Regarded as part of the family, they were figures of respect. Most families gave their amahs the leeway to discipline the children, allowing them to function as another "parent". But when Singapore industrialized from the late 1960s, more Singaporean women took up jobs in factories and offices, sparking a need for paid domestic help to look after the home. So the Government introduced the Foreign Domestic Servant Scheme in 1978, enabling women from neighboring countries, including the Philippines, Sri Lanka and Thailand, to be employed as paid domestic help. From a base of about 5,000 in the late 1970s, the number has grown, and there are about 227,100 foreign domestic workers here today. The labor force participation rate of married Singaporean women comprising citizens and permanent residents, meanwhile, has increased from 14.7 per cent in 1970 to 63.2 per cent last year. Unlike the much-loved amahs, maids today are treated by many families as an employee who happens to live in their home, say representatives of migrant workers' groups.”
“[…]The skills required of a maid are also higher today. Some are expected to help children with ever-demanding homework and to have the computer skills to assist them; care for the elderly, which has become more complex in terms of nursing skills; and run the home, which involves operating sophisticated appliances and being able to cook according to dietary demands. And Singaporeans get all these comparatively cheaply. The services of a live-in Indonesian maid start from $815, taking into account her salary and the monthly $265 levy, but excluding costs of insurance, food and medical care. There are levy concessions for families with young children and elderly parents. In contrast, a bundle of specialized services - for home cooked catered meals, weekly cleaning and caregiving for the elderly or children - could easily add up to more than $2,000 a month.”
2. The Work Permit system for foreign domestic workers and employment procedures
When intending to employ a foreign domestic worker in Singapore, the employer shall prepare the necessary prerequisites and request the Ministry of Manpower for employment. If approved, a work permit will be issued within two weeks. However, as this process can be complicated, employers usually use a private employment agency and pay its service fees.
(1) Work permit details
A work permit is generally issued to foreign-unskilled or semi-skilled workers for a period of two years, but can be renewed. Eligibility to maintain the work permit is as follows:
1) The employer shall comply with the following conditions:
① The employer shall hire a qualified foreign worker for the relevant work;
② The employer shall pay the fixed salary that was previously reported to the Ministry of Manpower;
③ The employer shall bear the costs of upkeep and medical treatment of the foreign employee;
④ The employer shall provide the foreign employee with acceptable accommodation;
⑤ The employer shall provide medical insurance to cover the costs of hospitalization and surgery;
⑥ The employer shall allow the foreign worker to be examined and treated by a doctor registered in Singapore. In cases where the foreign worker is not deemed suitable for work after medical evaluation, the Work Permit for the foreign employee shall be cancelled;
⑦ The employer shall pay the employment tax for each foreign worker;
⑧ The employer shall purchase a security bond for foreign workers (Malaysian workers excepted);
⑨ The employer shall not demand or receive any costs or benefits from the employment agency in relation to the employment of a foreign worker.
2) The foreign worker shall comply with the following conditions:
① The foreign worker shall be engaged in the job stipulated in the Work Permit, and work only for the employer;
② The foreign worker shall not be engaged in other business (including personal money-making business);
③ The foreign worker shall reside in the place designated by the employer;
④ The foreign worker shall consistently perform the job allowed under the Work Permit, and agree to a relevant civil servant requesting confirmation through inspection;
⑤ The foreign worker shall not marry a Singaporean or a permanent resident of Singapore inside or outside Singapore without prior report to the Ministry of Manpower;
⑥ The foreign worker shall not be pregnant or give birth in Singapore during the Work Permit unless that foreign worker has married a Singaporean or a permanent resident of Singapore after obtaining permission from the Ministry of Manpower. This regulation also applies to expired, cancelled, or revised periods on the Work Permit.
(2) The hiring process
Hiring procedures can be classified into three stages.
Stage 1: Getting ready & selection
① Employer attends orientation program
② Look for a candidate. Employer should come to an agreement with domestic worker on employment terms (e.g. salary, rest days).
Stage 2: Before the foreign domestic worker’s arrival in Singapore
③ Employer shall apply for a Work Permit from MOM (Ministry of Manpower). If the application is approved, MOM will send employer an in-principle approval letter.
④ Employer shall place a security bond with MOM.
⑤ Employer shall purchase personal accident and medical insurance for the foreign domestic worker.
⑥ Employer shall mail the in-principle approval letter (or notification letter) and an air ticket note to the foreign domestic worker.
⑦ If the foreign domestic worker will be working in Singapore for the 1st time, book online for the settling-in program (SIP) training course. Employer will need copies of the foreign domestic worker’s passport and education certificate.
Stage 3: Upon the foreign domestic worker’s arrival in Singapore
⑧ Within 3 days of the foreign domestic worker’s arrival, employer shall send her for the 1-day SIP course (if foreign domestic worker is working in Singapore for the 1st time).
⑨ Within 14 days after arrival, employer shall send the foreign domestic worker for a medical examination.
⑩ Employer shall request online for MOM to issue the Work Permit. MOM will inform employer of when to collect the Work Permit.
⑪ Within 1 month of the foreign domestic worker’s arrival in Singapore, employer shall make the 1st monthly levy payment.
3. Details of the Foreign Domestic Worker Scheme
(1) Foreign domestic worker requirements
The hired foreign domestic worker needs to meet the following requirements: Female; From 23 to 50 years of age at the time of application; From an approved source country or territory, including Indonesia, Philippines, Myanmar, Sri Lanka, etc.; Minimum 8 years of formal education. According to comments by Singaporean citizens, foreign domestic workers are very popular and a majority of them have bachelor degrees from universities.
(2) Employer requirements and obligations
The employer shall be 20 years or older in age, own an appropriate house and have financial capability. The Singaporean government supervises the employer’s responsibilities strictly. The employer shall not assign the foreign domestic worker to work other than housekeeping and shall not let her work part-time either. In the event an employer is caught assigning a foreign domestic worker illegally, a fine of up to SGD 10,000 will be levied. For the first violation, the employer will be barred from using foreign domestic workers permanently. In cases where the employer uses a foreign domestic worker without a qualified Work Permit, the employer shall be fined a minimum of SGD 5,000 to a maximum of SGD 10,000 or imprisoned for up to one year.
(3) Documents necessary for work permits
1) Security bond, medical insurance and personal accident insurance
When applying for a work permit for a foreign domestic worker, the employer shall submit a security bond and evidence of medical insurance and personal accident insurance. These three items can be purchased as one package.
A security bond is a binding pledge to pay the government up to SGD 5,000 if the employer breaks the law or the conditions governing the employment of a foreign domestic worker (Malaysians excepted). This security bond will be returned if the employer does not use the foreign domestic worker or once she returns back to her home country. However, if the employer or the domestic worker is found to be in violation of any of the conditions of the work permit, if the employer does not pay her salary on time, or if the employer fails to send her back if she goes missing, the security bond may be forfeited. Provided, if the foreign domestic worker goes missing and the employer has made reasonable efforts to locate her and has filed a police report, half of the security bond (SGD 2,500) will be forfeited.
2) Medical insurance and personal accident insurance
The employer needs to buy medical insurance with coverage of at least SGD 15,000 per year for inpatient care and day surgery during the foreign domestic worker’s stay in Singapore. The employer also needs to buy personal accident insurance with a minimum coverage of SGD 40,000 for the foreign domestic worker. This compensation should be made payable to her and her beneficiaries. The employer shall submit the information of insurance details when the foreign domestic worker’s work permit is issued or renewed.
(4) Pre-employment medical examination for the foreign domestic worker
The employer needs to submit the documents of the foreign domestic worker’s pre-employment examination before her work permit is issued. The employer must send the foreign domestic worker for a medical examination by a Singapore-registered doctor within 2 weeks of her arrival in Singapore. Her work permit will only be issued if she passes the medical examination. Otherwise, she will have to be sent home. The medical examination screens the foreign domestic worker for 4 types of infectious disease (tuberculosis, HIV, syphilis and malaria).
(5) Employers’ orientation program
The employer needs to attend the Employers’ Orientation Program (EOP) if the employer is hiring a foreign domestic worker for the first time or has changed workers frequently. First-time employers must complete the EOP at least 2 working days before submitting a work permit application. The EOP is a 3-hour program that will help employers understand their role and responsibilities as employers of foreign domestic workers.
(6) Settling-in Program
Employers must send first-time foreign domestic workers for the Settling-in Program (SIP) within 3 days after their arrival in Singapore (excluding Sundays and public holidays). The SIP is a 1-day orientation program to educate foreign domestic workers on safety precautions and life in Singapore. The employer shall pay for the costs and time spent for the foreign domestic worker to attend the SIP. The topics covered include introduction to Singapore, employment conditions, safety at home, and management of relationships and stress.
(7) Semi-annual medical examinations
During the foreign domestic worker’s employment, the employer must send her for a medical screening every six months. This medical examination screens for pregnancy and infectious diseases such as syphilis, HIV and tuberculosis. If the foreign domestic worker fails the required results of this semi-annual medical examination, the employer must send her home immediately.
(8) Repatriation
The employer shall perform all the necessary duties to repatriate her to her home country once the foreign domestic worker’s employment period is expired. The employer shall inform the foreign domestic worker of the expiration of her employment contract 2 weeks in advance, pay all outstanding wages, and cover costs of the flight and all others necessary for repatriation.
4. Working conditions
(1) Salary
Employers shall report the monthly salary of their foreign domestic workers on the work permit application. The employer shall pay the foreign domestic worker the monthly salary as reported on the work permit application given to the Ministry of Manpower. The employer shall pay the salary within 7 days of the end of the month.
The employer shall pay the foreign domestic worker her salary each month, and the salary period must not exceed one month. The employer shall not force the foreign domestic worker to deposit her money in a savings account.
The employer can transfer the salary directly to the foreign domestic worker’s bank account in Singapore. If the salary is paid in cash, the employer must keep a record of the salary and the foreign domestic worker shall sign the record to confirm that payment has been made.
(2) Rest days and well-being
The employer is responsible for the health and well-being of the foreign domestic worker, and shall provide for rest days, proper accommodation, adequate medical care and safe working conditions.
To ensure that the foreign domestic worker gets enough mental and physical rest, the employer shall allow her to have a regular rest day. A paid rest day shall be given once a week, or an additional day’s wage shall be paid or a replacement rest day given within the same month.
The employer shall provide the foreign domestic worker with proper accommodation. The accommodation shall be equipped with basic amenities, and the foreign domestic worker shall not sleep in the same room with a male adult or teenager. The employer shall also provide the foreign domestic worker with three meals a day.
(3) Employment contract and safety agreement
Employers are encouraged to sign employment contracts with their foreign domestic workers and are required to sign a safety agreement with the employees. Employment contracts are necessary to avoid disputes.
(4) Prevention of abuse and ill-treatment
Employers will face severe penalties if they are convicted of abusing a foreign domestic worker. The Ministry of Manpower takes allegations of abuse and ill-treatment of a foreign domestic worker seriously, especially if employers commit physical or sexual abuse. If the Ministry suspects that a foreign domestic worker is being abused or ill-treated, the police will investigate. If convicted, employers will face severe penalties under the law. Employers and their spouses will also be permanently banned from employing any other foreign domestic workers.
5. Expenses related to the use of foreign domestic workers ,
The reason Singaporeans employ so many foreign domestic workers is due to compatibility between the necessities for life and the costs. Couples who both work outside and have children need help in raising their children. A particular need is when caring for elderly parents at home, someone like a nursing care housekeeper is absolutely essential. There is also significant demand for someone to prepare dinner for the family when the couple comes home exhausted after work. These aspects of two-income households are similar in Korea. However, in Singapore a family with young children can hire a domestic worker for about KRW 500,000 per month, which is a reasonable burden.
The details of expenses can be described as follows:
(1) Expected costs besides salary
1) Employment agency fee: between SGD 100 and SGD 2,000 (differs by agency)
2) Settling-in program: SGD 75 (if the foreign domestic worker is working in Singapore for the first time)
3) Applying for the Work Permit: SGD 30
4) Work Permit document: SGD 30
5) Employment tax for hiring a foreign domestic worker: SGD 265 per month (When a “concession rate” applies: SGD 60 per month. For the concession rate to apply, one of the following needs to be true: ① the family has a child or grandchild living with them who is a Singapore citizen and a maximum 16 years of age; ② the family has an elderly family member living with them who is a Singapore citizen and at least 65 years old; ③ the family has a person with disabilities living with them who needs assistance.
6) Security bond: SGD 5,000 (Can be substituted by a bank’s security bond or guarantee)
7) Medical insurance: coverage of SGD 15,000
8) Personal accident insurance: coverage of SGD 40,000
Accordingly, expenses to be paid immediately, including employment agency fees and government employment tax will likely be between SGD 500 to SGD 2,600.
(2) Salary levels
There are many factors to consider when determining salary. Experience and relevant training are the main ones. However, a domestic worker’s nationality may also play a part. Minimum salaries for Indonesians and Filipinas start at SGD 500 in Singapore, at SGD 450 for Myanmar workers, and SGD 400 for Sri Lankan workers. Recently, the Philippine government is looking to reduce the number of domestic workers entering Singapore, which will cause the salaries to increase accordingly. Employment expenses together with government tax (SGD 265 per month, or SGD 60 at the concession rate) can be expected to equal between SGD 500 to SGD 800. This means foreign domestic workers can be hired for a total cost of between KRW 410,000 and KRW 650,000 per month. This represents expenses for using foreign domestic workers in Singapore equaling only 20-32% of what would need to be paid to Korean domestic workers (an average of KRW 2 million).
Ⅲ. Evaluation of the Use of Foreign Domestic Workers in Singapore
1. Management through Immigration Control
Immigration control in Singapore is well managed through regulated immigration policy. Singapore has taken advantage of the abundant supply of low-wage workers from neighboring countries. Since its introduction, the government has focused on three major categories in the course of managing the Foreign Domestic Servant Scheme.
(1) Continuous management of foreign workers
A foreign domestic worker running away from her place of employment is considered the employer’s responsibility, and will result in the employer’s security bond of SGD 5,000 (4 million Korean won) being forfeited, which forces the employer to make efforts to ensure his/her foreign domestic worker does not break her employment contract or terms of her entry visa. The government also supervises to ensure that the foreign domestic worker receives a health examination every six months to check whether she has any infectious diseases or has become pregnant. In cases where the employer uses the foreign domestic worker for other duties besides housekeeping work, the employer will certainly be punished. So, the foreign domestic worker is strictly monitored to retain her resident status, and is not allowed to work other jobs, but shall go back to her country upon expiry of her employment contract.
(2) Protections for foreign domestic workers
The employer shall bear all expenses necessary in hiring the foreign domestic worker. These include air tickets, the settling-in program, medical examinations, medical insurance and personal accident insurance, which shall not be transferred to the foreign domestic worker. The employer shall also provide accommodation and relevant items for daily life. In particular, the government listens to reports of abuse (whether verbal, physical or sexual) against the foreign domestic worker, and strictly punishes employers who engage in abuse.
(3) Employment levy and tax return
The employer shall pay the foreign domestic worker levy of SGD 264 per person every month, which is an employment tax equivalent to KRW 220,000. However, employers living with a child or grandchild of 16 years of age or younger, living with parents aged 65 years or older or with a family member with disabilities, shall pay a concession rate of SGD 60 (KRW 49,000) instead. The government levies a higher employment tax on people outside of these situations, to protect the affordability of the foreign domestic workers system for those who need it.
Besides the employment tax program for foreign domestic workers, Singapore also maintains an incentive tax program. In cases where a married woman continues to work, she will be reimbursed the total employment taxes she paid in return for employing the foreign domestic worker through the year-end income tax adjustment. This serves as an income tax incentive towards encouraging women to continue working, and does not apply to unmarried women or men (whether married or not).
2. Management through Labor Laws
(1) Salary
Since Singapore labor law does not apply to foreign domestic workers, her salary can remain lower than the minimum wage, while still remaining remarkably higher than what she would earn in her home country. This makes it advantageous to continue the Foreign Domestic Worker Scheme, but the large gap between what they earn and what their Singaporean counterparts can earn can leave the foreign domestic workers with a sense of comparative deprivation.
(2) Working hours and holidays
As there are no restrictions on working hours, the foreign domestic worker can be requested to work long hours, and may be subject to exploitation. Days off are required by law to be provided once a week, but these can be substituted with additional pay instead.
(3) Other working conditions
Physical, sexual, and verbal abuse and mistreatment are prohibited. If committed, the employer will be charged with a crime and banned from using foreign domestic workers again.
3. Evaluation
There are two ways to take advantage of the benefits of foreign personnel: one is to use highly-qualified professionals, and the other is to use cheap non-professional personnel to supplement manpower. The foreign domestic workers used in Singapore are to supplement the available non-professional manpower. This program to make the most of the foreign domestic workers positively affects female social activities and guarantees a comfortable home life. Currently, Singaporeans use the foreign domestic workers very commonly, and their numbers make up 4% of the total population, while in Korea, the proportion of domestic workers is less than 1% due to the high costs.
The two key elements for Singapore’s successful foreign domestic workers program are its favorable internal/external environment and thorough management. The internal/external environment refers to the lack of sufficient manpower within Singapore and the abundance of that manpower in the neighboring countries. The countries sending domestic workers have supported their nationals going abroad to make money due to the low salaries and high unemployment rates in their countries. Domestic workers can earn several times more in a housekeeping job than working in their countries, and furthermore can directly experience an advanced culture, and so domestic work has been a considerably favorable job. The appropriate labor costs have been well-controlled due to the balance between personnel supply and customer demand. Internally, the Singaporean government has a strict and thorough management system for foreign domestic workers. This system includes employment taxes for each domestic worker, mandatory physical examinations, and strict enforcement of regulations, which have made it almost impossible for domestic workers to run away from their workplaces and stay in Singapore illegally. These factors have made the Foreign Domestic Worker Scheme possible and effective while remaining secure and manageable.
Ⅳ. Legal Protections for Domestic Workers & Introduction to Korea of Singapore’s Foreign Domestic Servant Scheme
1. Legal Protections for Domestic Workers
(1) Global standards
In 2011, the 100th General Assembly of the International Labour Organization (ILO) adopted the Convention Concerning Decent Work for Domestic Workers and a Recommendation. The major content of the Convention includes applicable regulation of domestic workers under labor laws just like other ordinary workers, such as reasonable working hours, one day off a week of 24 consecutive hours, restrictions against payment in kind rather than cash, clear statements of working conditions, and freedom of association. As of May 20, 2014, the Convention has been ratified by 14 ILO member countries, most of whom are supplying domestic workers to other countries. Korea has not yet ratified the Convention, but legal enactment has been proposed by some lawmakers to conform to the standards of the ILO, but no legislative action has been taken.
According to an ILO report on the status of domestic workers around the world, only 10% are protected by the host nation’s labor laws that apply to ordinary workers, while 30% are completely excluded from all application of labor laws. This report also points out that about 70% are partly protected by related regulations in the host nation, although these regulations are not labor laws. Of particular note is that the two advanced nations of Korea and Japan exclude domestic workers completely from application of labor law.
(2) Korean domestic workers and application of labor law
1) Reasons why domestic workers are excluded from labor law
Here, ‘domestic worker’ refers to persons employed for the purpose of assisting with housekeeping duties (cooking, cleaning, nursing, childcare, etc.). We will now look at the reasons why domestic workers are excluded from labor law.
First, according to Article 11 of the Labor Standards Act, “This Labor Standards Act shall apply to all businesses or workplaces in which five or more workers are ordinarily employed. This Act, however, shall not apply to any business or workplace which employs only relatives living together, and to workers hired for domestic work.” The Labor Standards Act stipulates in this article that domestic workers are excluded from application of labor law.
Second, relations between an employer and a domestic worker are considered private relations that do not fall under governmental authority. The caregiver is usually engaged with a particular patient and provides exclusive nursing care, but if the caregiver works for a care-providing company and receives a wage in return for giving nursing care, the person is considered someone to whom the labor law applies.
Third, a domestic employer is not considered a business or workplace, because he/she does not employ a domestic worker to seek profit or accomplish a business purpose, but simply for convenience.
2) Necessity for protection
Domestic workers, as pointed out in the ILO report, do not receive protection against low salaries, abusively-long working hours, and the loss of rest hours, suffer from mental, physical and sexual abuse, and have restrictions on their freedom of movement. Accordingly, considering the length of working hours while exclusively engaged with a particular family, it is necessary to protect the basic rights such as a minimum level of salary, maximum working hours, and guaranteed off-days.
2. Introduction of the Singaporean Model to Korea
(1) Preparation of relevant laws
Currently, foreign domestic workers cannot legally be employed inside Korea, except for overseas Koreans (H-2 visa holders). The Act on Foreign Workers’ Employment, etc. deals with non-professional workers (E-9) and overseas Koreans (H-2) who are fully protected by Korean labor law. However, domestic workers are regarded as a special type of workers excluded from direct application of labor law, and so it is necessary to prepare special regulations or guidelines when considering introduction of foreign domestic workers in Korea.
(2) Security bond
In reviewing Singapore’s Foreign Domestic Worker Scheme, the most impressive item to be reflected on is the security bond. In Korea, if a foreign worker disappears from the workplace, the employer is not responsible for it, but if this happens in Singapore, the employer’s deposited security bond of SGD 5,000 is forfeited in most cases. As this represents a serious financial hit for most employers, they take extra care to ensure their foreign workers do not disappear.
(3) Protection programs for foreign domestic workers
Even though Korea has not yet ratified the ILO’s Convention Concerning Decent Work for Domestic Workers, we need to thoroughly train and manage employers who will employ foreign domestic workers to ensure compliance with the measures suggested for foreign domestic workers such as reasonable working hours, provision of a weekly holiday, and written statements of actual working conditions. Just as in Singapore, Korea needs to introduce a systematic management system such as pre-employment and semi-annual medical examinations, secure accommodations, medical insurance, and provision of round-trip air tickets. In particular, it is necessary to create regulations against and remedy procedures for sexual/physical violence by the employer, long working hours, and violations of other human rights, and establish a system to protect foreign domestic workers.
3. Items to Consider before Introducing Foreign Domestic Workers to Korea
(1) Balancing supply of and demand for domestic workers
Singapore has used foreign domestic workers for the past 40 years, able to keep costs down because Singapore does not use an Employment Permit system to control employment, but a Work Permit system that allows it to maintain balance between supply and demand. In Korea, it is only possible to hire a limited number of foreign domestic workers and they must be overseas Koreans (H-2 visa holders) from China or Russia. As there is more demand than supply, the cost difference between hiring overseas Koreans as domestic workers and hiring native Korean domestic workers is insignificant. Here, the basic reason to introduce foreign domestic workers in Korea is due to the lower costs. In terms of this basic intent, keeping a balance between supply and demand in employing foreign domestic workers, Korea can also take advantage of the resulting cost-effectiveness over a long period of time just as Singapore has done through its Foreign Domestic Worker Scheme.
In the course of introducing such a foreign domestic worker scheme, it is desirable to take advantage of civilian employment agencies licensed by the government. Through competition between these employment agencies, it would be possible to maintain a sizable manpower pool so that employers can choose the most suitable workers for employment and keep costs down.
(2) Language and accommodation issues
In Singapore where the official language is English, there is no great difficulty in communicating with foreign domestic workers in English. Countries like the Philippines, Myanmar, Indonesia, and Sri Lanka that send foreign domestic workers can communicate in English, and many applicants from those countries have college degrees as well. However, in Korea, as English is hardly used in ordinary homes, there would be communication issues due to language. Foreign domestic workers would need to be able to speak some Korean to maintain basic communication. Therefore, more incentives would be needed to attract those who can speak Korean. On the other hand, there would be a number of Korean families who intend to hire Filipinas who speak English fluently in the interest of teaching their children how to speak English. Highly educated couples, especially, would prefer to hire foreign domestic workers who can speak English well.
Regarding residence, most domestic workers in Singapore stay in the employer’s home. This reduces the cost of keeping a domestic worker, and also makes it possible for the employer to have domestic maid service whenever needed. The average Korean home is a 30 pyeong apartment with three rooms, and giving the domestic worker one exclusive room would be best, but if the family is too large for this, the domestic worker can share a room with the employer’s young child.
(3) Preparations to prevent illegal status
Along with the increased number of foreigners staying in Korea, which has surpassed 2 million people, or 4% of the entire population, the number of foreigners staying illegally has increased to 200,000. The most important point in employing foreign domestic workers is to keep costs down. Cases where foreign domestic workers run away from their place of employment and move to a better-paying job will render a foreign domestic worker scheme ineffective in this regard. Accordingly, before introducing any foreign domestic worker scheme, prior system measures need to be in place to make it difficult for foreign domestic workers to stay illegally. As explained above, one method is to hold the employer responsible through the threat of losing a significant security bond, but this would not be enough to prevent some foreign domestic workers from leaving to work better paying jobs. A more fundamental solution would be to punish people found to be employing illegal foreigners harshly enough that they would find it impossible to continue their business. In addition to this, foreigners who are working illegally should be treated as law-breakers and punished as severely as possible under the Immigration Control Act.
Ⅴ. Conclusion
People and products cross borders freely in this era of globalization, integrating all nations into one great market. Singaporeans have taken advantage of the supply of cheap foreign domestic workers. Through this, the city state has increased its competitiveness by making the most of its female manpower by keeping child-rearing expenses low while improving quality of life. Koreans also need to take advantage of the supply of foreign domestic workers, as is done in Singapore, towards increasing the low birth rate and assisting highly-trained women to continue their careers while they raise their families.
Singapore introduced its Foreign Domestic Servant Scheme (FDSC) in 1978 to bring in foreign domestic workers. There are three factors behind the FDSC’s success. First, there has been a greater supply of domestic workers from neighboring countries than demand for their services in Singapore. Second, it has been possible to maintain a secure supply for many years through strict immigration regulations that make it difficult for foreign domestic workers to work illegally. Third, Singapore’s indirect supervisory administration makes efforts to protect the human rights of these domestic workers and improve their working conditions.
In order to take advantage of low-cost foreign domestic workers as Singapore has done, action must be taken to ensure three main points for success: ① maintaining the low cost of labor; ② preventing foreign domestic workers from working illegally; and ③ preparing protections for employment of current domestic workers while taking advantage of the lower cost foreign domestic workers.
First, how can we maintain a low cost of labor over a long period of time? If the costs end up being the same as hiring Korean workers, there is no benefit to hiring foreign ones. So, in cases where employers can hire domestic workers all the time without a maximum as is done in Singapore, the cost of the supply can be sustained due to price adjustments inherent in a balanced supply and demand. Second, how can we prevent foreign domestic workers from working illegally while other migrant workers are earning three times more money? Above all, the employer hiring a foreign domestic worker should be held directly responsible for that worker disappearing by means of forfeiting the employer’s security bond. However, the only way to resolve this issue is through strict enforcement of immigration law for both Korean employers illegally hiring migrant workers, and the illegal migrant workers themselves. Company employers who have hired illegal foreign domestic workers should be punished harshly enough that it will be impossible to continue their business. At the same time, when such illegal foreign domestic workers are caught working illegally, they should be deported immediately after suffering legal and financial consequences serious enough to deter others. Third, how can we protect the employment of the current Korean domestic workers while taking advantage of the low cost of foreign domestic workers? One method is to levy an employment tax from domestic employers who benefit from hiring low-cost foreign domestic workers as occurs in the Singaporean taxation system. This employment tax can be used to support re-employment training for Korean domestic workers and create more suitable jobs for them.
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