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Service fee refund in case of FDH termination ‘unacceptable’, says EA rep

09 May 2024

FDHs deplore the job-hopping allegation which led to tighter regulations of agencies (File)

It is “totally unacceptable” to require employment agencies to refund in full or in part, the service fee paid to them by an employer in case the foreign domestic worker they placed is terminated, or backs out before the two-year contract period ends.

This is what Thomas Chan, chair of the Hong Kong Union of Employment Agencies, said in reaction to today’s promulgation of the revised Code of Practice for EAs, which provides among other things, that the service agreement between the agencies and the FDH employers must state whether a refund or arrangement for a replacement FDH will be provided in case of premature termination, or services are not rendered in full.

“Giving a partial or full refund to an employer if the helper terminates the contract is totally unacceptable because the termination by either side could be due to a lot of reasons,” said Chan. “Obliging the agency to refund implies that the termination was caused by an agent, which is absolutely absurd.”

TAWAG NA!

He sees nothing wrong in making the agencies brief the FDHs on the possible consequences or premature termination of contract, but said that again, this overlooks the reasons behind the worker’s decision to quit early.

“The Code of Practice simply tells agencies to brief workers but does not analyze the complicated relationship between workers and employers,” said Chan.

Another feature of the new CoP is the requirement that EAs must inform the Labour Department if they are associated with any financial institution when applying for a license or renewal of a license.

In addition, the EAs should not provide job applicants with information regarding personal loans or withhold their employment contracts to force them to pay or repay any sum of money.

The amended Code replaces the one promulgated on Feb. 9, 2018, and is largely as a result of clamor from employers groups and legislators for an end to the so-called job-hopping of FDHs, who they say switch employers for better pay and working conditions.

The practice is said to be condoned by some EAs who offer cash incentives to workers they want to poach for employers who are desperately in need of domestic helpers.

To prevent this alleged practice, the new CoP forbids agencies from offering money to workers so they will terminate their contracts.

However, migrants and their supporters have dismissed the job-hopping claim as a myth, saying workers will not leave their employers if they are treated well, especially since many of them are in debt and cannot afford to lose their jobs.

They also know that it is not easy to change employers if their contracts are terminated as they will need to go back to their home countries to wait for their new employment visa, which means they will be jobless for at least six weeks.

Now that EAs are put under a lot of pressure because of the new regulations, migrant workers fear that a big part of the problem will be passed on to them, as they are in the most vulnerable position because of their need to keep their jobs. 

They say the number of terminations could rise, as employers will now be able to demand a refund if they deem the worker unsuitable. They also fear that the potential drop in the EAs’ income because of the refund provision would be passed on to them in the form of higher placement fees.

Either way, the workers say they could find themselves in a worse situation than before.

 

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